Determining the value of jewelry doesn’t need to be confusing, though this can vary depending on the market and who is buying in the first place. The same goes for people who are interested in knowing the value of a gold necklace 24k, gold necklace 18k, and pieces like a gold necklace with a pendant. We’re going to talk about the many factors that affect the price of gold jewelry in today’s blog.
Selling Gold Jewelry?
It is understandable for people to want the highest possible appraisal for their gold jewelry. However, the valuation of gold isn’t as simple as it may seem. Though you may have a heavy and seemingly invaluable piece of treasure in your hands, jeweler’s appraisals will depend on many factors. There are two ways to sell your jewelry.
The first way is to just sell it as it is, and append your valuation on it. If the design of the jewelry and the perception of the buyer aligns with your valuation, you can probably get a good price for it.
The second method, on the other hand, requires a bit of computing. If you are selling a 14-carat gold necklace for example for scrap gold, its value will be largely determined by its actual gold content, which is what buyers of scrap gold are after in the first place.
So the first thing you have to do is to ascertain the actual ratio of gold in the necklace, and its relation to the other metal/s that may have been used to alloy it.
The price of the gold will depend on current market prices, which are not determined by the jewelers or pawnshops, but by the larger gold market in your country of residence.
Take note however that the current gold index does not reflect literally how much you are going to get for scrap gold because businesses who do buy gold will mark it down, so they can make a profit (which is the entire point of the practice, if you think about it).
To get the actual price of your gold jewelry (after determining its gold content), you can take note of the commodity index price and mark it down by 20 to 30%.
This will be the reasonable valuation of gold, and you can use this to find out if you are being given a good deal or a bad deal by anyone who would like to buy your gold jewelry. Jewelers and pawnshops often pay 80% of the current price of gold after ascertaining that you have the genuine article.
To buy: Pearl with 14K gold earrings
Assuming that you have standard 14-carat jewelry, we can assume that your jewelry has a bar of gold to base metal ratio of 14:10. That is roughly 58.3% gold. The rest is the metal used to strengthen the gold because pure gold is too malleable and would make awful jewelry because they can get bent and damaged easily.
This is the general formula. The next step is to find out just how much gold there is to be sold in the first place.
For this, you will need an accurate weighing scale. A small digital scale should be sufficient, though jewelers tend to use accurate scales so they can get the most accurate readings right down to the smallest unit (milligram).
If your jewelry has precious stones and other ornamentations set onto them, those would have to be temporarily removed. Why? Gold dealers will only be interested in paying for the gold, not the stones. You can probably make an offer to them, but we’re focused on the gold for now.
Place your gold jewelry on the weighing scale and get its weight either in grams, milligrams, or ounces. 1 gram is equivalent to 0.03215 in troy ounces.
One ounce, on the other hand, is equivalent to 0.91146 troy ounces. In some instances, gold dealers also use a standard of weight called the pennyweight. 1 troy ounce is equivalent to 20 pennyweights (DWT).
After gathering this information, multiply the resulting weight by 58.3% (if the jewelry is presumed to be 14 carats). The result is the actual weight of the gold. A necklace that weighs about 8 grams will have 4.7 grams of gold content under the current formula.
To buy: 14k gold hoop earrings
Factors That Affect the Value of Jewelry
If you are interested in flipping jewelry (buy and sell), you have to take into consideration the following factors:
- The number one factor that affects the value of all jewelry, regardless of the type of metal used, is the inherent beauty of the pieces. Personal taste can affect this, and the market that you are targeting should align with the type of jewelry that you wish to sell. In the higher-end markets, everything about the jewelry is scrutinized, up to the smallest details. The smallest details can either increase or decrease the value of the jewelry.
- Materials are the second most important factor that affects the value of the jewelry. The higher purity of precious metals is highly prized. Precious stones used in the construction of the jewelry will also increase the valuation. Diamonds, rubies, and sapphires occupy the higher tiers in the world of jewelry and the flawlessness of these stones will improve your chances of getting a better price.
- Craftsmanship is the third factor. Jewelry created by well-known artisans or icons in the market will fetch more than nameless designers. Items from rare collections that have limited release will also attract wealthy buyers in well-known auctions as well. Then, of course, there is the actual craftsmanship. The innate beauty of the jewelry should shine right down to the most intricate details.
- And finally, we have the condition of the jewelry. Undamaged jewelry is the minimum. Those in pristine condition will attract buyers looking for the finest pieces available, and you can also demand more for jewelry that