What Is the Gold Craftsmanship Fee?

When you shop for gold, especially when you like a piece in the window, you notice that the price on the tag differs from the value of the gold by weight and karat. The gap between the current gold price and the price the jeweller offers you is at the heart of the question "what is the craftsmanship fee?" Anyone who wants to protect their savings needs to understand this pricing. Otherwise, something bought as savings can lead to unexpected losses when it is sold.

The craftsmanship fee (işçilik, also called the making charge) covers the cost of the production steps gold goes through to become jewellery. It includes design, casting, setting stones, polishing and the maker's profit. You pay it when you buy the piece, but it is not refunded when you sell.

What does the craftsmanship fee cover?

In the workshop, gold is melted, combined with alloy and turned into wire, sheet or castings. Making a necklace or a ring set with stones can take hours of handwork and machine time. The fee you pay includes design, the craftsman's labour, moulds and equipment costs, among other things.

14 and 18 karat jewellery often involves more detail. Enamel, rhodium plating, clasp mechanisms and quality control are also part of the fee. In short, craftsmanship is the price of turning gold into durable jewellery that can be worn. We cover choosing jewellery with stones in our diamond buying guide.

Why does crafted gold lose value when sold?

The main reason people feel they "lost money selling gold" is often not that gold lost value, but that the craftsmanship fee paid at purchase cannot be recovered. As we explain in what is scrap gold, used jewellery is mostly bought to be melted down rather than resold.

In this process, the design and craftsmanship value of the piece is not counted. The jeweller values the pure gold in the piece at the current buying price. That is why you cannot get back the craftsmanship fee you paid. It is more accurate to see highly crafted jewellery as valuable belongings bought for use, not as a savings tool.

What is low-craftsmanship gold and how can you tell?

Those who want to save and lose little when selling turn to products with very low craftsmanship. First among these are 24 karat packaged gram gold and bars. Their craftsmanship cost is very low; almost all the money you pay goes into the gold itself.

Some jewellery also has low craftsmanship. Plain 22 karat burma and flat ajda bangles belong to this group. With no decoration or stones, their craftsmanship cost is low and so is the loss when they are sold. Follow the current prices of these products on our market screen.

How to calculate the craftsmanship share of a piece

You can find the craftsmanship share of a piece you are thinking of buying with a simple calculation. You need its weight, karat and tag price.

Say you like a 14 karat (585 fine) ring weighing 10 grams. It contains 5.85 grams of pure gold. Multiply this by the day's fine gold selling price to find the value of the gold in the ring. Subtract this from the tag price: what is left is the extra cost made up of craftsmanship, tax and profit. Use our tools section for the calculations.

Do Turkish gold coins carry craftsmanship?

Coins such as the quarter, half, full coin and Ata Lira are struck by the Turkish State Mint. They carry no workshop craftsmanship or design cost like jewellery. But there is a minting cost, so their prices differ slightly from the value of the gold they contain.

When demand for coins rises sharply, the buy/sell spread can widen beyond normal. In ordinary conditions, however, coins are among the products bought and sold with the lowest loss, after packaged gram gold.

When should you buy crafted jewellery?

None of this means you should not buy crafted jewellery. Jewellery is not always bought as savings. Weddings, proposals, birthdays or looking for a piece that reflects your personal style are the real reasons to buy crafted jewellery. The craftsmanship in a piece you will wear for years or leave to your child is the price of the aesthetic and emotional value it brings you.

Separating what you expect from savings and from wear is the key to managing your budget. If you want to both wear and save, plain 22 karat bangles are a good middle way. If you are looking for a piece just for special moments, you can choose 14 or 18 karat designs. See the models in our catalogue.

Types of gold by level of craftsmanship

Knowing the craftsmanship structure of what you choose prevents disappointment when you sell. You can see our gold options up close at our store in Ümraniye, Istanbul. Our address is on the contact page.

This article is for general information only and is not investment advice.

Frequently Asked Questions

If I trade in old jewellery for new, do I pay craftsmanship?

Yes. In a trade-in, your old piece is valued on its gold content. The price of the new piece includes its craftsmanship fee. So when you pay the difference, you are also paying for the new piece's craftsmanship.

Why is the price low when selling 14 karat gold?

Only 58.5% of 14 karat gold is pure gold. On top of that, 14 karat products are usually highly crafted jewellery. Because the craftsmanship fee is not counted when selling and only the pure gold is valued, there is a marked gap compared with what you paid.

Can you bargain on craftsmanship when buying gold?

With packaged gram gold and coins, prices follow the live market, so there is usually no room to bargain. With crafted jewellery, there may be some flexibility on the craftsmanship fee.