Are you curious about how jewelers determine what price the gold jewelry you buy will be? The answer is actually more complicated than you might think. Jewelers need to take many things into consideration before pricing a jewelry piece that is made of gold. We’ll look at what factors matter here, so you understand what makes up the gold buying price you see.
The first thing a jeweler is going to do is weigh the gold or other metals that are used for alloying. These are measured in what is called “troy ounces.” Here are some simple calculations that show what a troy ounce is, along with similar measurements related to jewelry.
12 troy ounces = 1 troy pound
20 pennyweights = 1 troy ounce
24 grains = 1 pennyweight
1 gram = 15.43 grains
1 troy ounce = 31.10 grams
It’s important for a jeweler to understand these measurements and how to use them in order to provide the proper pricing for their wares.
Besides measurements, the karat value of gold also plays into the price you see on jewelry. For instance, 24 karat gold is 100% pure gold. 12 karat gold, on the other hand, is half gold and half an alloy. This means it is 50% pure. In order to determine purity, take the number of karats and divide this by 24 to get the answer. For instance, 18 karat gold (18/24) is 75% pure.
Determining the gold value of a piece of jewelry requires knowledge of three things. The first is weight, as we mentioned, while the second is the number of karats. The third pertains to the daily price of gold.
Of course, every jeweler uses some sort of markup for their jewelry. When you hear a jeweler say they don’t sell based on weight, what they really mean is the price is based on what the market can bear. This also means there is often a markup for a gold item.
If you know, however, the karat and weight of the gold jewelry, you can then calculate that the gold value is yourself. That will give you a decent idea of what the markup may look like, which gives you a gold buying price.
Lincroft Village Jewelers in New Jersey offers affordable gold jewelry and all the services that come with it. Custom designs, engraving, and inscribing are all possible to make your jewelry truly unique. You can find out more by calling the store at 732-842-7001.