Metal Value
Metal value is the portion of a jewellery price that comes from its pure precious metal content, based on weight, purity and rate.
Metal value is the raw worth of the gold, silver or platinum inside a piece, before any labour or tax. It is found by multiplying the net metal weight by the purity fraction and the current rate. Every other charge in the price, making, stones, wastage and GST, is layered over this base.
The three inputs that set it
Metal value needs only three numbers: net weight, purity and rate. Net weight is the gold in the piece, excluding stones. Purity is the fraction of pure gold, so 22K is 0.916 and 18K is 0.75. Rate is today's price per gram for pure gold.
A 10 gram 22K bangle on a 6,200 rupees per gram 24K rate works out as 10 times 0.916 times 6,200, which is 56,792 rupees of metal value. Some businesses instead quote the rate already adjusted for 22K, in which case they multiply weight by that 22K rate directly. Either route lands on the same figure as long as purity is handled once.
Why it anchors the whole price
Metal value is usually the largest single component of a gold piece, so small errors here move the final price more than a mistake anywhere else. Getting the net weight and purity right matters: counting stone weight as gold, or applying a 24K rate to a 22K piece without the fraction, quietly overcharges the customer and can fail an audit.
Because the rate changes daily, metal value is the part of the price that lives. Making charges and stone values tend to hold steady, so when a jeweller says prices moved today, it is almost always the metal value that moved.
- Metal value equals net weight times purity fraction times rate.
- It excludes stones, making charges and taxes.
- It is usually the biggest part of a gold piece's price.
- It moves daily with the gold rate while other charges hold steady.
Metal Value, in short.
Does metal value include the weight of the stones?
No. Only the net metal weight is used. Stone weight is priced separately as stone value, so the gold portion is not inflated by diamonds or gemstones set into the piece.
Why is purity part of the calculation?
Because a 22K piece is only 91.6 percent gold. Multiplying by the purity fraction strips out the alloy so the customer pays for the actual pure gold content at the pure gold rate.
Is metal value the same as the price I pay?
No. It is only the base. Making charges, wastage, any stone value and GST are added on top, so the final price is always higher than the metal value alone.
Related terms
See metal value inside a real jewellery system.
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