Why Is White Gold Price in India Different From Yellow Gold Prices?

Why Is White Gold Price in India Different From Yellow Gold Prices?

Gold has been a symbol of wealth, luxury, and investment for centuries. In India, gold holds an even deeper significance, deeply embedded in traditions, ceremonies, and financial planning. While most Indians are familiar with traditional yellow gold, white gold has steadily gained popularity due to its modern, elegant appeal.


However, one striking aspect that often intrigues buyers is the price difference between white gold and yellow gold. Understanding why the white gold price in India diverges from yellow gold prices requires a closer look at their composition, demand, production costs, and factors influencing market rates.


What Is White Gold?

Before diving into the price difference, it's essential to understand what white gold actually is. White gold is not a naturally occurring metal. It is an alloy, crafted by blending yellow gold with other metals such as palladium, silver, and nickel. This mixing process gives white gold its unique silvery-white appearance, making it a popular alternative to platinum and yellow gold. You can explore the current white gold price in India to better understand its value before making a purchase.


In contrast, yellow gold is typically mixed with metals like copper and zinc, which retain its warm, golden hue. Both white and yellow gold are measured in karats, with 24 karat gold being pure gold. Commonly, white gold is available in 18 karats, comprised of 75% gold and 25% other metals. This difference in composition is the first factor influencing the price disparity between the two types of gold in India.


Factors Contributing to the Price Difference Between White Gold and Yellow Gold


1. Gold Purity and Composition

One of the primary reasons behind the price difference between white gold and yellow gold lies in their metal composition. While both varieties are gold alloys, the metals used in white gold—such as palladium and silver—are more expensive than the traditional metals used to make yellow gold, like copper or zinc. This increases the cost of production for white gold jewelry and, subsequently, its market price.


2. Additional Processing Costs

White gold undergoes extra processing to achieve its distinctive look. After it is alloyed, an additional step involves coating the jewelry with rhodium, a rare and expensive metal. Rhodium plating enhances the shine and durability of white gold, but it also adds to its cost. In contrast, yellow gold does not require rhodium plating or any similar process, making it less expensive to manufacture.


3. Popularity and Market Demand

While yellow gold remains the traditional favorite in India, especially during weddings and festivals, white gold is growing in popularity among younger, urban consumers due to its contemporary aesthetic. However, white gold still lacks the widespread cultural significance that yellow gold carries, which often results in lower demand. The demand-supply dynamics for both types of gold play an essential role in influencing their market price.


4. Labor and Craftsmanship Costs

Jewelry made from white gold requires more intricate craftsmanship compared to yellow gold because of the rhodium plating process. Artisans require specialized skills to work with white gold, especially during finishing and polishing stages. These added labor costs are factored into the final price of white gold, making it more expensive than its yellow counterpart.


5. Resale Value

The resale value of white gold is slightly lower compared to yellow gold in India, largely due to the perception of yellow gold as traditional and eternal. Yellow gold has unrivaled significance as a long-term investment in India, while white gold is often considered a luxury purchase rather than an investment. This difference further influences pricing decisions for white gold jewelry.


How Is the White Gold Price in India Calculated?

To understand how the white gold price in India is determined, it is crucial to know the standard gold pricing methodology. The price of white gold hinges upon the following factors:


How to Calculate 22 Carat Gold Rate for Yellow or White Gold?

Calculating the 22 carat gold rate is essential for both investors and buyers, as it forms the backbone of the pricing structure for all types of gold jewelry, including white gold. To understand how to calculate 22 carat gold rate, here’s a step-by-step approach:


1. Check the Gold Rate Per Gram

Gold prices fluctuate daily based on international market trends like currency exchange rates, geopolitical stability, and demand for gold. The current gold rate per gram is published on various platforms, including the Reserve Bank of India (RBI) website or dedicated precious metal portals.


2. Determine the Purity

22 carat gold contains 91.67% pure gold, with the rest comprising alloy metals. To calculate the price of one gram of 22 carat gold, multiply the price of 24 carat gold per gram by the purity factor (91.67%).


Formula:

22 Carat Gold Rate = 24 Carat Gold Rate x (91.67 ÷ 100)


3. Add Making Charges

Jewelry-making charges typically range from 8–15% of the base gold price, depending on design complexity. These rates vary from jeweler to jeweler, so it’s wise to inquire about them before purchasing.


4. Include GST

The Indian government imposes 3% GST on the final price, including making charges. Adding this tax gives you the final retail price of gold jewelry.


Final Formula for Price Calculation:

Final Price = [22 Carat Gold Rate + Making Charges] + GST

For white gold, you’ll need to account for additional factors like rhodium plating costs and secondary metal costs before calculating the final price.


Comparing Yellow Gold and White Gold Prices: An Example

Let’s illustrate the price difference between yellow gold and white gold with hypothetical calculations.

Assume:


Yellow Gold Calculation:

  1. 22 Carat Gold Rate = ₹5,000 x (91.67 ÷ 100) = ₹4,583 per gram
  2. Making Charges = ₹500 per gram
  3. GST = 3% x ₹4,583 = ₹137

Final Price (Yellow Gold):

₹4,583 + ₹500 + ₹137 = ₹5,220 per gram


White Gold Calculation:

  1. Base Gold Price = ₹4,583 per gram (same as yellow gold)
  2. Secondary Metal Costs = ₹200 per gram (palladium or silver)
  3. Rhodium Plating = ₹150 per gram
  4. Making Charges = ₹600 per gram
  5. GST = 3% x ₹5,533 = ₹166

Final Price (White Gold):

₹4,583 + ₹200 + ₹150 + ₹600 + ₹166 = ₹5,699 per gram

From the example, it is clear that white gold costs approximately ₹479 more per gram compared to yellow gold.


Is White Gold Worth the Price Difference?

For buyers eyeing white gold jewelry, the price difference serves as a point of contention. While white gold costs more upfront due to rhodium plating and additional alloy metals, it offers a silvery finish similar to platinum but at a comparatively lower rate. Moreover, white gold is versatile and complements modern outfits, making it an attractive alternative for special occasions.


However, if investment value, cultural resonance, and affordability are your priorities, yellow gold remains the ideal choice. It delivers better resale value, is easier to maintain, and carries sentimental significance in Indian tradition.


Final Thoughts: Choosing Between White Gold and Yellow Gold

The choice between white gold and yellow gold boils down to budget, aesthetic preference, and purpose. White gold prices in India are influenced by additional production costs, materials, and market positioning, making them higher than those of yellow gold. The growing urban demand for white gold reflects its appeal as a fashionable and luxurious accessory, while yellow gold continues to reign supreme as the metal of tradition and investment.


Understanding how to calculate the 22 carat gold rate and factoring in influences like processing and making charges can help you make informed purchase decisions, whether you opt for white or yellow gold. Don't forget to compare prices across jewelers and assess certifications to ensure authenticity and value for money.


Whichever type you choose, gold remains a timeless asset that blends elegance with financial security—upholding the trust and admiration that Indians have for this treasured metal.