The Hidden Cost of Gold: Why You Lose 1 Gram for Every 10 Grams You Buy

Gold’s Glitter Comes at a Price

In India, gold isn’t just a precious metal — it’s an emotion, a symbol of trust, prosperity, and family legacy. From weddings to festivals, gold holds a sacred place in Indian households. But as the price of gold surges past ₹1.20 lakh per tola, there’s an often-overlooked truth behind its dazzling shine — one that could be quietly costing you thousands of rupees.

Most buyers believe that when they purchase 10 grams of gold, they own every bit of it. However, in reality, nearly 1 gram of gold disappears in the process of making or remaking jewelry. Whether you’re ordering a new design or exchanging your old ornaments, this hidden loss adds up — and the cost is still calculated on the full 10 grams.

The Hidden Process: How Gold Weight Shrinks

When raw gold is transformed into jewelry, a portion of it naturally gets wasted during crafting, polishing, and finishing. According to jewelers, for every 10 grams of 22-carat gold, nearly 1 gram is lost due to the high temperatures and melting processes involved.

So, even if you give your jeweler 10 grams of gold, the final ornament may weigh only around 9 grams — but you’ll still pay the full price for 10 grams. This means the glittering new bangle or chain in your hand has already cost you more than you realize.

Why This Happens

Pure 24-carat gold is too soft to shape into jewelry, which is why goldsmiths mix it with metals like copper, zinc, silver, or cadmium for strength and durability. This alloying process reduces the purity to 22-carat or 18-carat, making the metal workable.

However, during the melting and molding stages, some gold evaporates or sticks to the crucible, leading to slight but unavoidable weight loss. Though this might sound minor, with gold prices touching nearly ₹14,000 per gram, the financial impact can be significant.

What Happens During Jewelry Exchange

If you’re exchanging old jewelry for new, the loss might be smaller — especially if your ornaments are hallmarked. Hallmarking ensures purity and reduces errors in measurement. Still, when old gold is melted down to make fresh bars or ornaments, trace metals mixed during earlier crafting are lost.

This explains why your old necklace might not yield the same amount of gold when converted into a new one. Even though you’re reusing your own gold, you end up losing around 0.5 to 1 gram per 10 grams, depending on purity and handling.

How to Minimize Gold Loss

If you treat gold as an investment, experts recommend converting old jewelry into pure gold biscuits or coins instead of new ornaments. This avoids additional making charges and ensures you retain the highest purity and value. On the other hand, making new jewelry directly from old pieces often leads to double losses — one through weight reduction and another via craftsmanship fees.

Before buying or remodeling gold jewelry, always:

Check hallmark certification (BIS mark).

Confirm the purity — 22K, 18K, or 24K.

Ask for accurate weight measurement before and after crafting.

Clarify making and wastage charges in writing.

The Bottom Line

Gold’s brilliance may symbolize wealth and stability, but its journey from bullion to bracelet carries a hidden cost. Every gram matters when prices are soaring, and ignoring these fine details can melt away your hard-earned money without you even noticing.

So, the next time you visit your jeweler, don’t just admire the sparkle — weigh your gold carefully, verify its purity, and stay informed. After all, true wealth lies not in how much gold you buy, but in how wisely you manage it.