Jewellery vs Investment Gold: Where Your Money Goes

Key takeaways

Jewellery price = gold value + making charge + wastage (sometimes) + stones + GST/HST
Buyers of old jewellery usually pay for gold content only, often less a deduction
Investment gold: 24K bars and coins at spot plus a premium; generally GST/HST exempt under CRA rules
Lower karat means less gold: 22K is 91.6%, 18K is 75%, 14K is 58.5%
Jewellery makes sense for wearing; bars and coins make more sense for holding gold value

What do you pay for when you buy gold jewellery?

Gold value. Weight × the rate for that karat. A 22K piece is 91.6% gold, so its gold is worth 91.6% of the 24K rate.
Making charge. The cost of design and labour. It may be a percentage, a rate per gram or a flat price. Machine-made chains are often cheaper to make than hand-made or detailed pieces.
Wastage. Some jewellers, especially South Asian jewellers, add a percentage for gold lost in making. Ask whether it is included in the making charge or listed separately.
Stones and other materials. Stones are priced separately and should not be counted as gold weight.
GST/HST. The CRA says karat gold in jewellery form is not a “precious metal” for GST/HST, so jewellery is generally taxable. In Ontario that is 13% HST; in BC it is 5% GST plus 7% PST; in Alberta 5% GST.

The Royal Canadian Mint notes that jewellery premiums vary greatly with design and brand, while bullion value is set mainly by its gold content.

Worked example: where your jewellery money goes

All numbers below are made-up examples, not today’s rates or any shop’s charges. Say 24K gold is, for example, $150 a gram, and you buy a 22K chain in Ontario.

Line	Jewellery: 22K chain, 6 g	Investment: 24K bar, 6 g
Gold value	6 g × $137.40 (91.6% of $150) = $824.40	6 g × $150 = $900.00
Making charge (for example, 12%)	$98.93	-
Premium (for example, 5% on a small bar)	-	$45.00
HST 13% (Ontario)	$120.03	Generally exempt
You pay	$1,043.36	$945.00
Pure gold you own	about 5.5 g	6 g
Share of your money that is gold value	about 79%	about 95%

Try your own numbers in the jewellery markup calculator.

How much do you get back when you sell jewellery?

Most buyers of used jewellery pay for the gold content only. Making charges, wastage and tax are not paid back. Common deductions:

Melting or refining loss. Buyers often pay a percentage below the gold value to cover melting and refining.
Karat testing. If the piece tests below the karat stamped on it, you are paid for the lower karat.
Stones and solder. Weight that is not gold is removed.
Buyer margin. Pawn shops and cash-for-gold buyers usually pay less than refiners or the shop where you bought.

Some jewellers offer exchange schemes where you trade old gold for new pieces. Ask how they value your old gold and whether new making charges apply. More in how to sell gold in Canada.

How do karat and hallmarks affect value in Canada?

Karat sets how much gold you own: 24K is 99.9%, 22K is 91.6% (916), 21K is 87.5%, 18K is 75%, 14K is 58.5% and 10K is 41.7%. A 10 g 14K ring holds about 5.85 g of gold; a 10 g 22K bangle holds about 9.16 g.

In Canada, quality marks on gold are not mandatory. The Competition Bureau says that if a business does apply one, it must be truthful, and it must be accompanied by a trademark or hallmark. Pieces bought abroad may carry other countries’ marks. See what 14K and 18K gold are worth and how to tell if gold is real.

Should you buy jewellery or investment gold?

	Jewellery	Investment gold (bars, coins)
Main purpose	Wearing, gifts, tradition	Holding gold value
Cost over gold value	Making charge, wastage, stones, GST/HST	Premium over spot
GST/HST	Generally taxable	Generally exempt if it meets CRA rules
When you sell	Usually gold content less deductions	Buyback price, close to spot for common bars and coins

Many families do both: jewellery for weddings and festivals, and small 24K coins or bars as savings. RemitBee Gold, coming in early 2027, will let you buy pure 24K gold from $10 and turn 1 g into a gold coin; the waitlist is at gold.remitbee.com.

Gold prices can go down as well as up. Past prices don’t predict future prices.

Next steps: break down a jeweller’s quote with the jewellery markup calculator and compare it with the gold price by karat in Canada.

Common questions

Is gold jewellery a good investment?

Jewellery costs more than its gold value because of making charges and tax, and buyers usually pay only for the gold content. It holds some value, but bars and coins keep more of your money in gold.

Do you pay HST on gold jewellery in Canada?

Generally yes. The CRA says karat gold in jewellery form is not a precious metal for GST/HST, so jewellery is generally taxable at your province’s GST/HST rate (13% HST in Ontario).

What is a making charge on gold jewellery?

It is the cost of design and labour, added on top of the gold value. It may be a percentage, a rate per gram or a flat amount. Ask for it in writing.

How much will a jeweller pay for my old gold?

Usually the value of the gold content at that karat, less a deduction for melting, testing and the buyer’s margin. Making charges and tax are not returned.

Sources

Checked against these sources on October 24, 2026. Spotted something out of date? Tell us.

Jewellery vs investment gold: where your money goes