Sarafa Bazar Guide — How Gold and Silver Jewellery Pricing Works in Nepal

Gold jewellery making charge | Jewellery price breakdown | Sarafa bazar explained

Walk into any sarafa bazar in Nepal and the price tag on a piece of jewellery isn't just the day's gold rate — it's a combination of the metal's value, the craftsmanship that went into shaping it, and applicable taxes. Understanding this breakdown helps you shop smarter and avoid overpaying, whether you're buying a simple ring or an elaborate bridal set.

The Structure: Gold Price + Making Charge + VAT Explained

Every piece of gold jewellery in Nepal is priced using three core components layered on top of each other:

1. Gold value: Calculated by multiplying the day's per-gram gold rate by the net weight of gold in the piece, based on its purity (22K or 24K).

2. Making charge: The jeweller's fee for the labour and craftsmanship of shaping, casting, and finishing the piece — usually charged as a percentage of the gold value, though some jewellers charge a flat rate per gram instead.

3. VAT: Value Added Tax applied on top of the combined gold value and making charge, as required under Nepal's tax regulations.

Typical Making Charge by Jewellery Type

Making charges vary significantly based on how intricate the design is. Simple, machine-cast pieces carry the lowest charges, while handcrafted bridal sets with fine detailing command the highest.

How to Negotiate and Verify Hallmark Purity

Ask for a purity certificate: Reputable jewellers provide a hallmark certificate confirming karat purity (22K or 24K) — always request this before finalizing a purchase.

Compare making charges across shops: Since gold value is fairly standardized daily, making charges are where prices actually differ between jewellers — it's worth comparing two or three shops for the same design.

Negotiate on making charge, not gold rate: The daily gold rate is typically non-negotiable since it's set by the dealers' association, but making charges — especially on higher-value purchases — often have some room for negotiation.

Verify weight on a certified scale: Ask the jeweller to weigh the piece in front of you on a certified digital scale to confirm the exact gram weight being charged.

Buy-Back and Exchange Policy at Nepali Jewellers

Most established jewellers in Nepal offer a buy-back or exchange facility, but the terms matter significantly: some deduct a percentage from the gold value at resale, and making charges are almost never refunded when you sell jewellery back, since that fee covered labour rather than the metal itself. Before purchasing, ask specifically about the shop's buy-back deduction percentage and whether it differs for jewellery bought elsewhere versus jewellery originally purchased from that same shop.

Tips to Avoid Overpaying on Making Charges

Choose simpler designs when the piece is meant primarily as an investment rather than for display, since intricate detailing significantly raises the making charge without adding proportional resale value.

Buy during off-peak seasons — outside major wedding and festival periods — when jewellers may be more flexible on making charges to maintain sales volume.

Request itemized billing that separately lists gold value, making charge, and VAT, rather than accepting a single lump-sum price, so you can clearly see what you're paying for craftsmanship versus metal.

Frequently Asked Questions