Watch: ‘0% Making Charges’ on Gold Jewellery? Investment Banker Warns It’s a Marketing Trap

Jewellers recoup profits through inflated rates, hidden wastage charges, and overpriced stones, says Sarthak Anuja

As the festive season approaches, jewellery stores across India are rolling out attractive schemes to draw customers. Among them, the “0% making charges” offer has become especially popular — but experts warn it’s not as beneficial as it sounds.

Investment banker Sarthak Anuja has urged consumers to be cautious, calling the offer a marketing gimmick that often ends up costing buyers more. In a detailed post, Anuja broke down five hidden ways jewellers make money under the guise of such offers and advised shoppers to always verify jewellery through the HUID code on the BIS Care app.

“Most people fall for the ‘0% making charge’ pitch, thinking they’re saving, but in reality, they’re paying more through indirect costs,” he said.

According to Anuja, here’s how the trick works:

1. Inflated Gold Rates:
Even though customers can check live gold rates online, jewellers often quote ₹200 more per gram. On a 50-gram purchase, this results in an extra ₹10,000 — effectively a 2% hidden charge.

2. Wastage Charges:
While real wastage during crafting is just 2–3%, jewellers frequently bill up to 5%, citing intricate designs. This charge is also calculated at today’s higher gold price, not the rate when the jewellery was made.

3. Overpriced Stones:
Jewellery advertised with 0% making charges often features embedded stones or embellishments priced well above their actual value, allowing jewellers to recover the waived fees.

4. Poor Buyback Terms:
Standard jewellery may fetch up to 90% of gold value on buyback, but for “0% making charge” pieces, this falls to 70–80%, reducing resale value significantly.

5. Unshared Wholesale Margins:
Jewellers purchase gold at lower wholesale prices, but this margin is rarely passed on to consumers, further boosting profits.

Anuja also highlighted that during rising gold markets, jewellers earn even more through capital appreciation, adding to their gains.

He concluded by reminding buyers, “Always check the HUID on the BIS Care app before purchasing any jewellery. It’s the only way to ensure purity and authenticity under India’s hallmarking system.”