Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

PRICING AND PROFITABILITY
MINTED COINS AND BARS
ORGANISED FABRICATORS
Although charges vary among fabricators, and bulk orders are subject to negotiation, the following records the published
wholesale charges levied by an organised fabricator in a major city. Its minimum order is 1 kg.
Assumptions:
Gold price US$ 300
Exchange rate US$ 1.00 = Rs 48
For standard minted coins and bars
Using standard in-house designs, weights and dimensions.
Weight - at 995 purity Fabrication charge per item
Rupees Approximate US dollars
500 g Rs 225 US$ 4.69
200 g Rs 100 US$ 2.08
100 g Rs 60 US$ 1.25
50 g Rs 50 US$ 1.04
20 g Rs 30 US$ 0.62
10 g Rs 25 US$ 0.52
5 g Rs 23 US$ 0.48
2 g Rs 20 US$ 0.42
1 g Rs 15 US$ 0.31
For tailor-made minted coins and bars
Using standard in-house weights and dimensions, 995 purity and applying requested designs.
Standard weights Fabrication charge per item
Rupees Approximate US dollars
10 g Rs 50 US$ 1.04
5 g Rs 40 US$ 0.83
2.5 g Rs 30 US$ 0.62
1.25 g Rs 20 US$ 0.42
Guineas
8 g Rs 40 US$ 0.83
4 g Rs 30 US$ 0.62
Supplementary charges
Assumes that the customer provides acceptable bars (e.g. TT bars) for conversion into minted coins or bars.
Cost category Additional charges *
Rupees Approximate US dollars
Melting
Gold loss:
Rs 4 per 10 g US$ 0.25 per oz
5 g coins and less: 1.5 g per 1 kg Rs 6.94 per 10 g US$ 0.45 per oz
10 g coins: 0.7 g per 1 kg Rs 3.24 per 10 g US$ 0.21 per oz
* Excludes the cost of new designs and dies, if required.
SMALL FABRICATORS
The many small fabricators of coins normally charge less than organised fabricators, especially for small quantities.
The table below records the fabrication charge for 10 g coins by a small entity in a major city.
Quantity - at 995 purity Fabrication charge per item
Rupees Approximate US dollars
For 10 coins Rs 20 each US$ 0.42
For 100 coins Rs 8 – 10 each US$ 0.17 - 0.21
RETAILERS
Coins are normally retailed by jewellery retailers. The mark-up is generally low, usually Rs 50 (US$ 1.00) or less above the
carat gold price for coins 10 g and less. Some retailers sell coins as a “service” without a mark-up.
AN INTRODUCTION TO THE INDIAN GOLD MARKET 161