How silver is priced in Nepal: tola, ten gram, and the spread

Buying well2 July 20267 min readDiamond Palace Pvt. Ltd.

Most people buying silver for the first time in Nepal are surprised by how many numbers are involved. There is a rate per tola and a rate per ten grams. There is a sale price and a purchase price, and they are not the same. And then there are making charges. None of this is complicated once explained, but nobody explains it, so here it is.

The tola and the gram

One tola is 11.6638 grams. That figure is not arbitrary — it descends from the traditional weight standards of the subcontinent, and it has stayed in use in Nepal's bullion trade long after the metric system took over everywhere else.

In practice both units are quoted. A rate board shows the price of one tola and the price of ten grams, and you can convert between them yourself: divide the tola rate by 1.16638 to get the ten-gram rate, or multiply the other way. If a dealer quotes only one, ask for the other and check the arithmetic. Any honest dealer will do this happily.

Sale and purchase are two different prices

Every rate board carries two figures. The sale rate is what you pay to buy metal from the dealer. The purchase rate is what the dealer pays you to buy metal back. The purchase rate is always lower — the difference is called the spread, and it is how a bullion counter covers its costs and makes its margin.

A narrow, publicly posted spread is a sign of a healthy dealer. It means the shop expects to trade in volume rather than extract a large margin from each customer, and it means you can see exactly what buying and immediately selling would cost you. Be cautious anywhere the purchase rate is hidden, vague, or quoted only when you arrive to sell.

DPPL publishes both the sale and the purchase rate on this site every day, side by side. You always know what we will buy back at before you buy.

Where the daily rate comes from

The rate in Nepal follows the international silver price, converted to rupees and adjusted for local import costs and demand. The reference rate for the Kathmandu market is set each morning, and dealers price against it. This is why every shop on New Road quotes roughly the same number: they are all working from the same reference, competing on service, stock and spread rather than on the metal price itself.

The rate is set in the morning and generally holds for the trading day, though a sharp move in international markets can change it. This is also why a rate published on a website — including this one — is a reference figure, and the rate confirmed at the counter at the moment of your transaction is the one that governs.

Making charges

Here is the part that catches people out. The published rate is the price of the metal by weight. A bar is not merely metal — it has been refined to 999 fineness, cast or minted, stamped with weight and maker's mark, and packaged. That work costs money, and it is charged separately as a making charge.

So the price of a 100 gram bar is the day's ten-gram rate multiplied by ten, plus the making charge. Making charges are generally lower per gram on larger bars, which is the main reason a kilo bar is better value per gram than ten separate hundred-gram bars. Loose grain, which requires no fabrication into a finished bar, is priced differently again.

When comparing dealers, compare the total: rate plus making charge, not the headline rate alone. A shop advertising a keen rate and a heavy making charge may be more expensive than one doing the opposite.

What to check on your invoice

  • The weight, stated exactly — 100.0 g, not "about 100 g"
  • The fineness — 999 for fine silver bullion
  • The rate applied, and the date it applies to
  • The making charge, shown as its own line
  • Any applicable taxes, itemised
  • The dealer's registration details

This document is not paperwork for its own sake. It is what makes your bar liquid: a documented bar from a known dealer can be sold back at the published purchase rate without argument. An undocumented bar invites a discount, a delay, or a refusal.

A worked example

Suppose the ten-gram sale rate is Rs 3,800. A 100 gram bar contains ten of those units, so the metal is worth Rs 38,000. Add the making charge for a 100 gram bar, and that total — plus any applicable tax — is what you pay. If you sold that same bar back on the same day, you would receive the purchase rate on the metal: the making charge is not recoverable, because you are selling metal, not fabrication.

This is the single most useful thing to understand before buying. It means silver is a poor instrument for very short-term trading, and a reasonable one for patient accumulation. The making charge is amortised over however long you hold: trivial across five years, significant across five days.