Saturday, February 27, 2010

Revealed: How Big jewellery shops are Cheating public

I recently went to silver jewellery shop and the reputed owner told the following thing. I cant find any flaw in his logic and since he is in the business, I have to say, unfortunately right. Have you gone to a big jewellery shop and asked the gold rates for the jewellery? The 5 shops which are next to each other will quote different gold prices as each one will be offering a different amount of discount on gold. Not discount on the making charge but on the gold rates.

Now lets see the logic. Gold prices are standard all over the world on any particular time or day. If not there will be people buying it where it is cheaper and selling it where it is high, thus bringing the rates equal. Mind you, gold is a very liquid commodity and sold and bought massively from a gram to kgs around the world from time immemorial. 

So the rate at which a jeweller can buy gold is the same as any other jeweller as the 24 carat gold rate is constant at a period of time. So how is it that the jewellers are able to give you a discount on those rates? 

The answer is that they aren't giving you the amount of gold they are promising they are giving you. They may say they are giving 2 grams of 24 carat gold, but in truth there is no 2gm of pure gold, but 1.98 grams of gold and 2 grams of copper which basically means you are buying a lesser than 24 carat gold.


  1. wt u said is 100% right. i think. But big jwellery shos are cheating . y know they r offering something and putting more wastage on it. so everythng comes at same rate.

  2. Yes copper is added to keep the gold more strong... Gold in itself is a very soft metal. Copper adds to the strength without changing too much of the appearance of gold...Although most of the ppl know this, they still buy gold with some added stones and stuff which actually has an fatter price tag!!!