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Gold
You
may be wondering how one can know if the price is too low
or too high. Todetermine this, it helps to understand how
gold jewelry is priced. First let's see how to calculate w
the value of the gold in a piece of jewelry.
Suppose
an 18K (75% gold) ring weighs five pennyweight (1/4 oz t)
and that the spot w price for gold is $400 per ounce. The
value of the gold in the ring is $75. This can be "determined
by first calculating the gold value of an ounce of 18K gold
and by multiplying the result by 1/4 oz, the weight of the
ring.$400 x 75% _ $300 worth of gold in 1 oz of 18K gold $300
x 1/4 oz = $75 worth of gold in the ring.
The
price can also be determined by calculating the price per
pennyweight of 18K gold. To arrive at this figure, divide
$300 by 20 (20 dwt = 1 oz t), then multiply the result by
5 pennyweight, the weight of the ring.
$400 x 75% _ $300 per 1 oz 18K gold
$300
20 dwt = $15 per dwt
$15 x 5 dwt = $75 worth of gold in the ring.If the weight
of the ring is indicated in grams, the price per gram can
be determined by dividing $300 by 31.105 (1 oz t = 31.105
g).
Saying
that the gold value of a ring mounting is $75 can mislead
people into thinking that they can buy and sell it for $75.
This is not true. If they were to sell it, money would be
deducted to pay for service charges, for assaying expenses
(breaking it down into its metal components), and possibly
for an estimated 2% gold loss (gold starts evaporating when
it is melted).
If people were to buy the ring mounting, they would also pay
for a retail markup, for the metals alloyed with the gold,
and for the labor costs of designing, casting, and polishing
the ring. It is normal for the wholesale cost of a mounting
to be 200% and 300% more than the actual cost of the gold.
The wholesale cost of custom-made and hand-crafted jewelry
can be 400% and much more than the actual cost of the gold.
The retailer has to naturally make a profit over these wholesale
costs.
This
means that people who are interested in buying gold only as
an investment should buy gold coins or bars, not gold jewelry.
However, gold jewelry is not a waste of money. Instead of
thinking of it as a means of wearing ones investment portfolio,
people should look upon gold jewelry as an opportunity to
own a very special metal, an object of beauty and value which
can be handed down from one generation to another.
This
yellow color
The
thickness
percentage
of copper
If
you prefer to buy
Accidentally spotted
Apply
a drop of aqua
Determined
by calculating
Becoming increasingly popular
white
gold prongs
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