How Silver Prices Are Calculated in India (2025 Guide)
Many people are surprised when they visit a silver shop and find the price is higher than the daily silver rate they looked up online. This confusion is common — and completely understandable. The price of a silver article is not simply the metal rate multiplied by weight. Several factors go into the final price.
At Faincy Silver in Jaipur, we price our articles transparently. Here is exactly how silver prices are calculated so you can shop with confidence.
Step 1: The Silver Spot Rate
The base of every silver price calculation is the current market rate of silver, also called the spot rate. In India, this is quoted per kilogram on the Multi Commodity Exchange (MCX) and changes throughout the day.
As of 2025, silver trades roughly between ₹85,000 and ₹1,00,000 per kilogram (₹85 to ₹100 per gram), though this fluctuates with global markets, the dollar-rupee exchange rate, and demand.
When you see the silver rate online, it is for 999 fine silver (99.9% pure). Most silver articles are made in 925 silver, so the effective metal value per gram is slightly lower.
Step 2: Purity Adjustment
If the article is 925 silver, the metal value per gram is:
Metal value = Spot rate × 0.925
For example, if silver is ₹90 per gram: Metal value per gram of 925 silver = ₹90 × 0.925 = ₹83.25 per gram
Step 3: Weight of the Article
The total metal cost = metal value per gram × weight of the article in grams.
For a 100g silver idol: Total metal cost = ₹83.25 × 100 = ₹8,325
Always verify the weight on a scale before purchasing. At Faincy Silver, every article is weighed accurately and the weight is clearly disclosed.
Step 4: Making Charges
Making charges (also called labour or crafting charges) cover the skill and time of the artisan who made the piece. These vary significantly based on:
- Complexity of design — a plain silver glass has lower making charges than an intricate nakshi idol
- Technique — handcrafted pieces cost more than cast pieces
- Size and weight — larger pieces take more time
Making charges in Jaipur typically range from ₹15 to ₹80+ per gram depending on the work involved. For highly detailed pieces like silver room sets or elaborate idols, making charges can exceed the metal cost itself.
Step 5: GST
Silver articles attract 3% GST in India on the total value (metal + making charges).
The Complete Formula
Final Price = (Weight × Silver Rate × Purity + Making Charges) × 1.03
Example for a 150g silver Ganesh idol with ₹25/gram making charges and silver at ₹90/gram:
- Metal cost: 150 × 90 × 0.925 = ₹12,487
- Making charges: 150 × 25 = ₹3,750
- Subtotal: ₹16,237
- GST (3%): ₹487
- Final price: ₹16,724
Why Prices Vary Between Shops
Two shops can sell the same weight of 925 silver at very different prices because of making charges. A ₹500 Ganesh idol from a roadside stall and a ₹5,000 Ganesh idol from Faincy Silver may both be 925 silver — but the craftsmanship, detailing, and finishing are worlds apart.
At Faincy Silver, our making charges reflect 85+ years of master artisan tradition. Our prices are honest, transparent, and reflect genuine handcrafted quality.
How to Verify You Are Getting a Fair Price
- Check the current MCX silver rate online
- Ask for the article's exact weight
- Ask for the making charge per gram separately
- Calculate: (weight × rate × 0.925) + (weight × making charge) × 1.03
- Compare with the quoted price
A reputable silver shop will always be transparent about these numbers.