Gold Education
Buying & Owning Safely
Making Charge, Buy-Back and the Real Cost of Owning
The price you pay is public. The price you can sell at is the one that decides whether the purchase was any good.
Every gold purchase has two prices: the one you pay today, and the one you could sell at today. The gap between them is the true cost of ownership, and it is set the moment you choose what to buy.
What sits in the gap
- Making charge — Labour and design on jewellery. Frequently 10–25%, and paid back to you at zero when you sell.
- Tax — Usually not recoverable either.
- Dealer spread — The shop buys below and sells above the metal value. Normal, but it varies enormously between sellers.
- Purity deduction on resale — Some buyers assess returned jewellery below its stamp unless it is hallmarked and invoiced.
The one question that reveals everything
"What will you pay me for this exact item today?" Ask it before you buy. The gap between that answer and the asking price is your real cost, expressed as a number, and it makes two shops instantly comparable.
Same 10 grams, three ways
| Bought as | Typical premium | Sells back at | Round trip cost |
|---|---|---|---|
| 24K bar, hallmarked | Low | Close to metal value | Smallest |
| 22K coin | Low to moderate | Near metal value | Small |
| 22K jewellery | Making charge on top | Metal value only | Largest — the making charge is gone |
None of this means jewellery is a bad purchase. It means jewellery is a purchase, and bars and coins are savings. Problems start when someone buys the first believing they did the second.