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Figuring Out Gold

Top Tips for Gold Jewelry Shopper Jewelry of all kinds, specially gold jewelry, is one of the most usual things to buy as gifts and for oneself. Unfortunately, in the large majority of jewelry purchases, people pay far too much a price. The usual jewelry sale is computed at “triple keystone” price, which is known in the trade as calls triple cost. Therefore, if a jeweler shows you a book in which an item is listed at $3,000, he has probably paid $1,000 to get it. He might offer you a “bargain” price of $2,400, which is 20 percent less than the original price. Don’t think you’re taking advantage of his kindness – he will be pocketing $1400, a 140% profit on an item he bought for $1,000. You have to know the basics of gold jewelry. Jewelry that is marked “750” is 75 percent gold and 25 percent alloy, which means it is considered 75 percent pure gold, comparable to the purity of 18-carat gold. Fourteen-carat gold, which is stamped “585,” is 60 percent pure gold. Using the same logic, “375” or 9-carat gold is 37.5 percent pure gold. In England, people have high regard for 9-carat gold, but that is not the case in the US., where it is classified as costume jewelry and hence not a good investment. You may never be able to resell it for any amount like what you spent to get it. Generally speaking, jewelry is sold according to its pure gold weight. To know your gold jewelry’s base value, you have to weigh it on a jeweler’s scale. Whatever its weight, you have to make deductions for the alloy content in the gold: for instance, since 18-carat gold is 75 percent gold, you’ll have to deduct 25 percent from the value to arrive at its gold weight. Hence, if the gold is presently priced at $1,000/ounce, and you have an 18-carat 4-ounce piece, the value of pure gold in the metal is $3,000, which is the least amount you could get if you were to sell it.
Understanding Gold
On the other hand, if you purchase the same 18-carat jewelry on Forty-Seventh Street, you should find a shop that sells it for around $4,000, approximately 33% more than its weight. Triple keystone is the standard outside the jewelry district, and you should be able to buy the same pieces for about $9,000. Clearly, the above doesn’t apply to pieces created by designers like Cartier or Bulgari, where a three-ounce pure gold bracelet can have a price tag as high as $30,000 – its weight 10 times over. Then again, famous jewelers design usually design exquisite pieces, so you’re paying a substantial premium for the design as well as the brand. However, if you should sell these designer pieces, although you will certainly get some premium over weight, it is not going to be vastly more than the weight average gold jewelry would bring.Understanding Gold