Working out a 21k price with making charge and VAT
Final price = (weight × gram price + weight × making charge) × 1.15, because the 15% VAT is charged on the gold and the making charge together.
For a 10-gram piece, SAR 15 a gram making brings it to about SAR 5,339, and SAR 70 a gram to about SAR 5,972. The whole difference is the making charge and the VAT on it.
Making charges on 21k gold in Saudi Arabia
Making charges on everyday 21k jewellery run roughly SAR 15-70 a gram. Small pieces can pass SAR 100 a gram, because the work is spread over very little gold.
The making charge does not come back when you sell, so ask for it before the piece is weighed. Ask for an invoice showing the karat, weight, gram price and total, as the Ministry of Commerce requires.
21k versus 22k, 24k and 18k
21k is 87.5% pure gold. 22k (91.7%) costs about SAR 21.39 a gram more today, and 18k (75%) about SAR 64.18 less; 18k is common in modern designs.
24k is almost pure gold and is mostly sold as bars and coins. Investment bars of 99% purity or more carry no VAT, unlike 21k jewellery, which carries 15%.
Selling 21k gold after you buy it
When you sell a 21k piece, the shop pays its weight × the buying price, about SAR 431.81 a gram today (estimate). A 10-gram piece bought today for about SAR 5,627 with SAR 40 a gram making would fetch about SAR 4,318.
In other words, the gold price would have to rise by about 30% before you get back what you paid, because the making charge and the VAT do not come back.