Wastage
A percentage charge added to a gold price to account for the metal lost while a piece is made.
Wastage is a charge, usually a percentage of the gold weight, that covers metal lost while a piece is being made. Cutting, melting, filing and polishing all shave away tiny amounts of gold, and traditionally the customer covers that loss through a wastage charge, commonly around 5 to 10 percent. Modern machine making wastes very little in reality, but the charge survives as a trade convention and, together with making charges, forms part of the final price.
How wastage is charged
Wastage is applied as a percentage of the gold weight, so a 5 percent wastage on a 20 gram piece is treated as if an extra gram of gold were used. Multiply that added weight by the purity fraction and the gold rate and it becomes a real line in the price. Rates vary by design: intricate, hand worked pieces carry higher wastage than plain machine made ones.
Some jewellers fold wastage into the making charge or present the two together, while others itemise it separately. Either way it is metal cost the customer pays over and above the actual weight of the finished piece.
- Charged as a percentage of gold weight, often 5 to 10 percent.
- Covers metal lost in cutting, melting and polishing.
- Higher for intricate designs, lower for plain pieces.
- Sometimes shown separately, sometimes bundled with making.
Why it persists and how it fits pricing
In hand crafting, real gold was genuinely lost as dust and filings, so wastage reflected a true cost. Today, machine manufacturing recovers most of that metal, so wastage is often more of a pricing convention than a literal loss, and it varies widely between jewellers, which is why buyers are encouraged to ask how it is calculated.
In the final price, wastage sits alongside metal value, stone value, making charges and taxes. Increasingly jewellers combine making and wastage into a single value addition figure so the customer sees one clear charge over the raw metal cost. A pricing system should apply it consistently so the same design carries the same wastage every time.
- Wastage covers gold lost during manufacturing.
- It is charged as a percentage of gold weight, often 5 to 10 percent.
- Machine making wastes little, so it is largely a convention now.
- It is often combined with making charges as value addition.
Wastage, in short.
What is a typical wastage charge?
Commonly around 5 to 10 percent of the gold weight, though it varies by jeweller and design. Intricate handcrafted pieces carry higher wastage than plain machine made ones.
Is wastage a real loss of gold?
Historically yes, from filing and polishing. With modern machine making, most metal is recovered, so today wastage is often more a pricing convention than a literal loss.
How does wastage differ from making charges?
Wastage covers metal lost in production, while making charges cover the labour and craftsmanship. Many jewellers now combine both into a single value addition figure.
Related terms
See wastage inside a real jewellery system.
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