If you are looking for the best gold chain or researching your options, the most baffling thing you will come across is the pricing of the gold jewelry. On top of the rather confusing variety, there are many cases where the pricing of the gold chains will have you spinning. This is often the case because there is a lot that goes into the pricing of gold jewelry, and every gram counts.
In this article, we’ll take you through everything you need to know about the cost of gold jewelry, 24k gold chains, and how the pricing or the worth of a 24k gold chain, for example, is determined. Also, are there specific factors that determine the value of gold chains?
But first, the basics:
What is 24K gold chain made of?
24K gold is the purest version of gold to exist, and it boasts a percentage purity of 99.99%. The 24 karats represent the purity of the pure gold, and it translates to 24 parts of pure gold out of possible 24 parts – this is because the purity of gold jewelry is based on the possible total content of gold per every 24 parts.
While there are other types of gold alloys that are more common, 24k gold can be defined as the non-alloyed gold that doesn’t have any detectable nickel, zinc, silver, copper, palladium, or any other metals. Therefore, 24k gold is only made of pure gold and nothing else. Unlike 10k, 14k, or 18k gold, which contain gold that is alloyed with metals like copper, zinc, palladium, silver, etc.
Note that the high purity level of 24k gold from non-alloying leaves you with a very soft and malleable version of pure gold. This bright yellow gold with orange-yellow hues is quite different from the common versions of gold you are used to seeing. Unfortunately, its softness means that it bends, scratches, warps, and scuffs easily, which is why it’s not the go-to version of gold used in jewelry making. A 24K gold chain, therefore, would be a very delicate piece of fine jewelry that shouldn’t be worn every day.
Also, you should know that there is no higher level of purity of gold than 24k gold, and because 24k is not alloyed with any other metals, there is nothing like 24k white gold or 24k rose gold.
How much is a 24k gold chain worth?
Well, the value of that 24k gold chain is determined by its weight, specifically, in ounces, unlike karat jewelry which is sold in grams. So, 24k gold would be sold in its ounce weight, meaning that to determine the value of the chain, you’d have to convert it into ounces.
Today, 24k gold is sold at a market rate of about $1528 per ounce. And the value of your gold chain will depend on its weight.
In case you need to convert the weight of gold from ounces to grams or vice versa, you should know that 1 Ounce (Troy Ounce) is equal to 31.1grams.
How much is a 14k gold chain worth?
14K gold is 14 parts of pure gold, and the rest of it is made of other metals which are alloyed with pure gold. These metal alloys make up the remaining 10 parts of the 24, and it is, therefore, expressed as 14k gold or as a percentage – 58.3% pure gold.
The value of the 14k solid gold chain is, therefore, determined using the percentage of pure gold in the chain and how much of that translates to the weight of the pure gold.
How much is a 18k gold chain worth?
The value of the 18k gold chain is determined by its weight and the current market prices or the spot price, among other factors such as the seller’s commission.
With only 6 parts out of 24 made of metal alloys like copper or silver, 18k gold is considerably more valuable than 14k gold, and it’s also a more popular choice for people looking for high-end gold jewelry.
Check the market weight for the gram weight of 18k gold, determine the weight of pure gold in the 18k gold alloy, then calculate the value of the 18k gold.
The metals that are added to the 18k gold also determine the value of the chain, with 18k yellow gold being considerably more valuable than 18k rose gold because of the use of 25% silver and 75% pure gold, which are both high-value precious metals, a combination that drives up the price of the 18k gold.
Why your gold chain costs more in the jewelry store?
While there is a spot price for gold, and you might be aware of all the different factors that determine and affect the pricing of gold jewelry, gold chains are priced very high in the jewelry stores around—wondering why this is the case?
- First, the weight-based calculations for the gold chain, as explained above, aren’t inclusive of the price/ cost of the other metals that are added to create the gold alloy.
- Secondly, the labor cost for making the chain hasn’t been considered
- Thirdly, there is the price bump that happens naturally at the retail level. There are many other costs that come in here, for example, the marketing costs and other overhead costs, all of which must be considered in the determination of the final cost of the gold chain.
- Lastly, the addition of gemstones to the gold chain will instantly cause a spike in the price of the gold chain. This is because the addition of gemstones means an introduction of a new level of complexity.
Tips for Pricing a Gold Chain by the Gram
For starters, it’s important to know that jewelers and jewelry manufacturers determine the price of gold chains by looking at the weight of the gold, its perceived value, the cost of the metal alloys added to the pure gold, as well as the design and manufacturing intricacies that cover things like design works and the styles of the chains.
And though they can easily make jewelry in the same old same style over and over again, for years, the styles of the chains often change, which results in an increased overall cost of production.
These costs are transferred to the final piece of jewelry, and if you are in the chain-making business, you should know how to calculate and spread the cost onto the final cost of the gold chain.
So, how do you price your gold chains by the gram?
- Check the gram weight of the chain.
The gram weight is determined by the amount of pure gold in that chain. Knowing this weight allows for easy comparison between the actual amount of gold in that chain and the gold present in other jewelry or types of chains. Check for the gram weight in the chain’s description or use a jeweler’s scale to determine the gram weight of the chain.
- Determine the karat weight
Is the gold chain a 24k, 18k, 14k, or 10k gold chain? The karat weight is all about the purity level of the gold chain, and it determines the value of gold in the piece.
- What’s the current market price of gold (in ounces)?
Here, you need to convert the gram weight into ounce weight. One ounce equals 31.1grams. For the base price of the gold/ gram, here is the calculation to use:
- Price of the gold per ounce/31.1/24* karatage of the gold chain = Base price.
- Finally, find that gold chain you have been dreaming about
- Since you know how the prices are determined, you will have an easier time finding the best-priced gold chain.
The information also means having an understanding of how much the chain’s markup is, above the value of the precious metal and the chain’s scrap value.
A lot goes into the valuation of 24k gold jewelry, but for the most part, the gram weight of the gold is crucial.
There will be the normal markup by retailers since they have to cover their operational costs, but generally, the cost of the gold chain shouldn’t be too high above the value you’ve calculated.
Keep in mind that buying the gold chain from bigger brands or manufacturers means a lower price because the cost of production of each chain is absorbed by the multiple pieces made by the company.
Tiger is a fashion&jewelry lover. He is also a fashion jewelry manufacturer that help thousands of small business to grow and also do business with some big fashion jewelry brands. He is a truly metal expert and he will share some information you are looking for.