Discovering The Truth About Gold

Useful Tips for Gold Jewelry Shoppers 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. Thus, if an item is listed at a price of $3,000, the jeweler has probably paid $1,000 for it. He might may give you a “discount” of a 20 percent, reducing the price down to $2,400. You don’t have to feel guilty – he will be making $1,400 on something he bought for $1,000, or a a profit of 140 percent. You need to know the essentials of gold jewelry. Jewelry marked “750” is 750 parts gold and 250 parts alloy, meaning it is 75 percent pure gold, analogous to the purity of 18-carat gold. Gold that is stamped “585” is 14-carat and 60 percent pure gold. Using the same logic, “375” or 9-carat gold is 37.5 percent pure gold. In England, people think highly of 9-carat gold, but it is merely considered costume jewelry in the U.S. and 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. Knowing the base value of your gold jewelry requires weighing 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.
A Brief History of Gold
On the other hand, if you bought the same 18-carat piece on Forty-Seventh Street, you will most likely find a store that sells it for some $4,000, which is around a third above its weight. Outside of the jewelry district, triple keystone is the standard, so expect the same pieces to be sold for approximately $9,000. Certainly, the above doesn’t hold true for pieces by Bulgari, Cartier and other high-profile designers, where a pure gold bracelet weighing three ounces can be sold for as much as $30,000 (ten times its weight). Then again, there are quite well-designed pieces made by famous jewelers, so you are actually paying for the design and for the brand. But if you decided to sell such designer pieces, though you will surely get some premium over weight, it will not be that much more than the weight that a typical gold piece would bring.A Quick History of Gold