Gold Stater shows the pure-gold gram price for every karat. But when you walk into a shop, the final price rises because of the "workmanship" fee. This guide explains workmanship and how to judge it.
Definition of workmanship
Workmanship is the fee for fabricating a gold piece. It covers the goldsmith's labor, auxiliary materials (solder, molds, finishing), the maker's margin, and the dealer's margin. Workmanship is added to the raw gram price, and VAT is then charged on it.
How is it computed?
Workmanship is charged in pounds per gram. A single piece equals (weight times karat gram price) plus (weight times workmanship per gram) plus tax.
Example: a 15 gram 21K chain, gram price 3,000 EGP, workmanship 80 EGP per gram. The gold value is 15 times 3,000 = 45,000 EGP. Workmanship is 15 times 80 = 1,200 EGP. Subtotal 46,200 EGP. VAT (14% on workmanship only) is 168 EGP. Final total about 46,368 EGP.
Why does workmanship differ between pieces?
1. Design complexity: an intricately worked piece costs more than a simple chain.
2. Piece size: very small pieces (under 2 grams) carry relatively higher workmanship because fabrication cost is nearly fixed.
3. Brand: European and Italian brands carry much higher workmanship than local.
4. Karat: 21K is common with moderate workmanship; 18K can carry higher.
5. The shop: upscale-market shops raise workmanship even on simple designs.
What is the fair range?
In the average Egyptian market: simple chains and rings 50 to 120 EGP per gram; medium-complexity pieces 120 to 250; luxury or branded 250 to 500 or more; savings bars 20 to 50 (nominal workmanship). These are guideline figures; comparing three shops for the same design is the best judge.
Do I recover workmanship on sale?
No. Workmanship is not recovered on sale. When you sell a used piece, the dealer counts only the gold value at the buy price (see our guide on new vs used gold). So treat workmanship as the cost of an elegant object, not an investment.
How do you reduce workmanship?
- Buy bars instead of jewelry if the goal is savings.
- Prefer simple designs over detailed ones.
- Compare several shops before buying.
- Ask about workmanship plainly before weighing; some shops hide the question and show only the final price.
- Avoid very heavy pieces with a simple design, where workmanship is a large share of total cost.
Workmanship and false advertising
Beware "free workmanship" or "no-workmanship special offer." The final price is often above the market average by the amount of workmanship supposedly waived. Compare against the official gram price from our page before believing it.
Value-added tax
In Egypt, the tax on gold jewelry is charged on workmanship only (not on the raw gold value), usually 14%. Make sure the tax is a separate line on the invoice. A dealer who does not give you a tax invoice is evading tax.
A practical example with 2026-04-29 prices
Assume on 2026-04-29 the 21K gram price is 3,635 EGP. A 12 gram chain at 90 EGP per gram workmanship: raw gold 43,620 EGP, workmanship 1,080 EGP, tax 151.20 EGP, total about 44,851 EGP. The same weight at 200 EGP per gram (a detailed design): workmanship 2,400 EGP, tax 336 EGP, total 46,356 EGP. The 1,505 EGP difference is purely design, on the same gold weight. Track the raw price per karat on the gold price page to set your budget before the shop.
Can you negotiate workmanship?
Yes, especially at medium and small shops. Common negotiation: buying a large weight at once (50 grams or more) often gets a 10% to 20% workmanship discount; a repeat customer earns quiet discounts; a weak season (July, August) makes dealers more flexible. Avoid negotiating in peak season (wedding months, before schools) when demand is strong.
Conclusion
Workmanship is real and unavoidable on jewelry but recoverable nowhere on sale. Knowing the raw per-gram price first is your strongest negotiating tool. See the methodology page for how we compute buy and sell prices.
Sources
- Federation of Egyptian Chambers of Commerce, Gold Division (indicative prices, last verified 2026-04-29)
- Egyptian Tax Authority: gold VAT rules on workmanship
- Egyptian Assay and Weights Authority (inspection and testing)
- World Gold Council (jewelry demand statistics in emerging markets)
- goldapi.io (raw ounce reference price)