Per Gram Pricing
Pricing a piece on what it weighs, at the day's rate for its purity, plus labour. The traditional gold model.
The bill runs: gross weight, less stone weight, times the rate for that purity, plus wastage, plus making charges, plus GST.
It makes two pieces of the same design directly comparable, because the only variables are weight and labour.
It works badly for pearl and stone-set jewellery, where much of the value is not metal and cannot be weighed.
When you are buying
Ask for the net metal weight, not the gross. Gross weight includes stones and pearls, and being charged the gold rate on the weight of a pearl is a real and common error.
Fixed Price
One price for the finished piece, with no separate metal, labour and tax lines. Standard for pearl and fashion jewellery.
Making Charges
What you pay for craftsmanship on top of the metal, charged either per gram or as a percentage.
Gold Rate
The day's price of gold per gram at a stated purity. The base every gold bill is built on.
Wastage
An extra percentage added to the gold weight to cover metal lost during manufacture. Often charged even when no metal is lost.