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How Dealers & Smart Buyers Value Good Jewelry

gold guy 298x300 How Dealers & Smart Buyers Value Good JewelryWednesday, June 17, 2009 There are two components to gold jewelry that must be evaluated to determine the value. The first is the value of the gold metal in the piece. Gold is a universal commodity, very liquid and usually more desirable than any currency.   Therefore, gold dealers are willing to trade dollars for equal value of gold.  It is no accident that we have the expression, “as good as gold”. How much pure gold is in the jewelry piece you are considering? A few facts and some basic math, will give you the answer.  First you must know there are 31.1 grams in one ounce of gold, and that karat is a unit of measurement expressed as a fraction.  24 karat is pure gold, therefore 10K is 10/24th pure gold, and 14K is 14/24th pure.  The London Gold Exchange establishes two market prices each day for gold prices.  You need to determine the current London gold price per ounce. Now, let’s take an example. How much is the gold worth in a 14K, 18 gram gold chain if the London market for gold is $900.00 per ounce. $900.00 divided by 31.1=$ 28.94 per gram for pure gold 18 X $28.94 =$520.92 the value of 18 grams of pure 24K gold $520.92 X 14=$7292.88  divided by 24=$303.87 the value of the gold in the chain. Consider the $303.87 of the value is pure gold, so you are not really paying this amount for the jewelry, but rather trading your money for something of identical value–$303.87 of pure gold. The second component of the value is the jewelry craftsmanship and beauty of the piece.  What you are paying for the jewelry component in this piece is also about $300.00.  This $300.00 includes the added value cost; ie, artistry, manufacturing and some store profit.   Manufacturers and stores must make some profit for an incentive to make and sell the jewelry. You can now look at your piece of jewelry and correctly evaluate whether you believe you are getting good value.  We hope this information helps in your decision making. “When you know how to value jewelry, you will know where the jewelry values are” Jessup’s of Daytona 100 South Beach Street Daytona Beach, Florida 32114 386-252-8257

shapeimage 7 How Dealers & Smart Buyers Value Good Jewelry

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