Gold Making Charges Explained: What's Fair in Australia?

When you buy a gold chain, ring, or bangle, you are paying for two things: the gold itself and the work that went into turning raw gold into jewellery. The second part — the labour, design, overhead, and profit margin — is called the making charge.

The making charge is the difference between the gold's melt value (what the raw gold is worth at today's spot price) and the retail price you pay. It is usually expressed as a percentage above the melt value.

For example, if a 22K gold chain weighs 10 grams and 24K gold is trading at $135 per gram, the gold content is worth 10 × 0.9167 × $135 = $1,237. If the retailer charges $1,600, the making charge is ($1,600 ÷ $1,237 − 1) × 100 = 29%.

You can calculate the intrinsic gold value of any piece if you know three things: the weight in grams, the karat (purity), and the current gold spot price.

Gold Value = Weight (grams) × Purity × Spot Price per gram

As of March 2026, the 24K gold spot price is approximately $135–$210 AUD per gram (it fluctuates daily). That means 10 grams of 22K gold contains about $1,237–$1,925 worth of gold, depending on the day.

We analysed over 6,600 gold jewellery products from Australian retailers to answer this question. Here are the typical making charge ranges by jewellery type for plain gold pieces (no diamonds or gemstones):

The wide ranges exist because design complexity varies enormously. A simple machine-stamped 22K bangle and a hand-engraved antique-finish bangle are different products even if they weigh the same. The craftsmanship justifies a higher making charge for the latter.

Several legitimate factors push making charges higher:

Design complexity. A plain band ring costs less to make than a ring with filigree work, multiple stone settings, or a custom design. Hand-finishing and polishing add labour time.

Lower karat weight. 9K and 14K gold jewellery tends to have higher percentage making charges because the gold content is lower in absolute terms. A 14K ring with a $200 gold value and $150 making charge has a 75% charge — but the dollar amount of the charge is modest.

Brand premium. Branded retailers (Tiffany, Cartier, local premium brands) charge significant premiums for the brand name. This is a choice, not a deception, as long as the buyer understands what they are paying for.

Gemstones and diamonds. Any gold piece with stones will appear to have a very high making charge if you only compare the retail price to the gold value. The stone value is a separate component. Our Gold Calculator flags pieces with diamonds and gemstones so you can account for this.

Watch out for these warning signs:

No weight disclosure. If a retailer will not tell you the gram weight of a gold piece, they may be hiding a high making charge. Australian consumer law requires retailers to provide accurate product information on request.

Making charge over 60% on machine-made pieces. A plain machine-made chain or bangle with a making charge above 60% is outside the normal range. It is not necessarily a scam — the retailer may have higher overheads — but you can almost certainly find the same piece cheaper elsewhere.

"Discounted from" pricing. Some retailers inflate a fictional original price and then show a "discount." A $5,000 bangle "reduced to $2,500" may never have been worth $5,000. Focus on the actual price relative to the gold value, not the size of the discount.

No hallmark. Gold jewellery should carry a hallmark stamped into the metal (e.g. 750 for 18K, 916 for 22K, 375 for 9K). If there is no hallmark, ask why and consider having the piece independently tested.

Making charges are often negotiable, especially at independent jewellers and South Asian gold shops. Here is how to approach it:

1. Ask for the gold weight. Before discussing price, ask: "What is the gram weight of this piece?" A reputable jeweller will tell you without hesitation.

2. Calculate the melt value. Use the Lustrumo Gold Calculator to calculate the gold value at today's spot price. Now you know the baseline.

3. Ask for the making charge separately. Say: "I can see the gold value is approximately $X. What is your making charge on this piece?" This shows you are informed and anchors the negotiation to the gold value.

4. Compare across retailers. Check the Lustrumo Gold Prices page to see what other retailers charge for similar pieces. If one store charges 45% and another charges 25%, you have leverage.

5. Consider buying gold separately from making. Some traditional jewellers will sell you the gold at near-spot and quote the making charge as a flat fee. This is often the most transparent pricing model.

Lustrumo provides three free tools specifically designed for gold buyers: