What Is Wastage in Gold Jewellery? A Plain Explanation

If you have heard the word "wastage" at a jeweller's counter and nodded along, you are in good company. It is one of the less clear terms on a gold bill. This article explains it in plain language.

What wastage means

When gold is cut, filed, polished and shaped, a little is lost as dust and filings. Jewellers recover much of it, but not all. Wastage is the charge a jeweller adds to account for that loss. It is usually expressed as a percentage of the gold weight and is added to the gold you pay for.

How is it different from making charges?

• Making charges pay for labour and skill: designing, fabricating, finishing and setting.
• Wastage accounts for the metal lost during that work.

Some jewellers charge both separately. Others quote a single making charge that already includes an allowance for wastage. Either approach is acceptable as long as it is clear on the bill.

A simple example

Suppose a piece needs 10 grams of gold and the wastage is stated as 6 percent. The jeweller adds 6 percent of 10 grams, which is 0.6 grams, to the weight that you are billed for. You would pay for 10.6 grams of gold, plus making charges. The numbers here are only an illustration of the method.

Why wastage is higher on some pieces

• Intricate designs involve more cutting, carving and filing, so more metal is lost.
• Hand finishing can remove more material than machine-made, uniform pieces.
• Chains and jali work lose more metal than a plain band.

A plain ring will therefore have a lower wastage than a heavily detailed necklace.

What is a fair level?

There is no single fixed figure. It varies with design, method and the jeweller's practice, so use the breakup to compare. If one quote shows wastage and another shows none, do not assume the second is cheaper. Compare the final price for the same weight and design.

Questions you can ask

1. Is wastage charged separately, or included in the making charge?
2. What percentage is it, and on which weight is it applied?
3. Is it applied to net weight or gross weight?
4. Is the final price the same after you add all components?

A confident jeweller will answer these without hesitation. Our guide to making charges explains the other half of the labour cost.

Does wastage affect exchange value?

When you exchange old jewellery, the value is based on the gold content, so wastage and making charges paid at the time of purchase are not usually returned. Read how old gold exchange works to see how the calculation is generally done.

What "zero wastage" offers really mean

You may see "zero wastage" or "no wastage" advertised. It is worth reading as a pricing choice, not as a free gift. A jeweller who does not list wastage may be recovering the same cost through the making charge, or through the rate used. The way to judge any such offer is the total price for the same weight and design, with every line visible, not the label on the poster.

Seeing every line

On our pages the price is split into its parts so that nothing is a mystery. Choose a piece, such as a pair of diamond earrings, and read the breakup. If you want someone to go through it with you, book an appointment.