‘Control gold ornaments making charges’
Excelsior Correspondent
JAMMU, Jan 1: National Sikh Front (NSF), today alleged that common citizens are being subjected to a silent economic exploitation through arbitrary and hidden making charges in the gold jewellery trade, asserting that the issue lies not with the price of gold but with the flawed system governing its sale.
Addressing a press conference at the Press Club Jammu today, Chairman of the NSF, Varinderjeet Singh said gold in India occupies a unique position as a cultural, social and financial necessity. “For most families, gold is associated with marriages, social obligations and long-term financial security, particularly for women. However, this deeply rooted trust is being misused through non-transparent pricing practices,” he said.
Singh maintained that while international gold prices are often cited to justify rising jewellery costs, the real and largely unregulated burden on consumers comes from making charges. He pointed out that these charges are frequently calculated as a percentage of the gold price, instead of being linked to actual labour, craftsmanship or production costs.
“In Jammu and similar markets, making charges commonly cross 15 per cent and, in many cases, go far beyond that. As gold prices rise, these charges automatically escalate, even though the effort, time and technology involved in making the jewellery remain unchanged,” he said, describing the practice as economically illogical and unfair to consumers.
Highlighting a major market contradiction, Singh noted that despite gold prices touching record levels in 2025, jewellery demand has shown a clear downward trend. “People are buying less gold jewellery due to high prices, yet they are paying more per purchase. In a fair market, declining demand should moderate prices. That is not happening because excessive ancillary charges are cushioning the impact for sellers while burdening buyers,” he observed.
Singh also dismissed claims that higher making charges translate into better earnings for artisans. He said most goldsmiths continue to work on fixed monthly salaries or daily wages that are unaffected by fluctuations in gold prices.
Drawing attention to wastage charges, Singh alleged that despite advancements in jewellery manufacturing such as precision casting, laser cutting and recycling, consumers are still being charged 5 to 12 per cent wastage. “In many cases, this is neither transparently disclosed nor reconciled, and is often merged with making charges, leaving the buyer with no clarity,” he said.
He further warned consumers about so-called “zero making charge” offers, calling them misleading.
Raising legal and constitutional concerns, he said that hidden pricing and uniform charging practices undermine consumer rights and fair competition. He urged the government and regulatory bodies to examine the role of trade associations and large players in promoting such practices.
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