Gold is among the most valuable precious metals that exist today. Its high value doesn’t depreciate over tie, nor is it affected by issues like inflation. You can always be sure you’ll get a profit from selling gold or gold items.
It is therefore a great investment when it comes to jewelry making. While it is expensive to acquire, it offers jewelers a significant return. There are, however, certain tips that help in making this profit. In this post, we will discuss several tips you can apply when it comes to buying gold to make jewelry.
Actionable Tips for Buying Gold to Make Jewelry.
Gold makes exquisite and fine jewelry pieces that most people love to adorn. Its appealing shine and luster are what attract most people to it. Its hypoallergenic nature and retainable value are other reasons as well.
As mentioned, however, acquiring gold can be expensive due to its high value. Applying the tips mentioned here, however, will help you get gold for making jewelry at a fair price, which will earn you a great profit later. These tips are as follows:
1.Understanding The 10K 14k 18k 24K Gold
As you may know, gold in its purest form is extremely soft that it can’t hold up when used to make anything. For this reason, it is normally mixed with other metal alloys to make it harder and more durable. As a result, you can find gold in different Karats, starting from 10k to 24k gold alloys.
If you’re intending to buy gold to make jewelry, then the first things you should know are the characteristics and features of the different karat golds. Pure gold is 24/24 parts of gold in total. Hence 24k gold is the purest form you’ll find gold in. For other karats, a certain number of gold parts is mixed with other metal alloys. The most common metals used are silver, zinc, copper, and palladium.
Low karat gold is those that contain the least amount of gold per 24 parts. In most countries including the US, the least amount of gold legally allowed in an alloy is 10 parts, hence 10k is the lowest karat recognized. In some countries like in Europe, you can find gold alloys with as low as 9 parts of pure gold out o 24parts. Low karat gold has high durability in terms of hardness because of containing less gold than other metals. It is, however, considered to be more likely to react with the skin due to a higher quantity of other metals that may contain nickel. Low karat gold is also impure due to the low gold content and therefore has the lowest value. That means you can purchase 9k or 10k gold for the cheapest price when it comes to gold.
High gold karats like 22k and 24k have the highest value. They contain the most content of pure gold compared to the presence of other metal alloys. For that reason, they have more value and are more hypoallergenic. They are also more prone to scratches and damage because of being soft due to a lack of enough metal alloys present to harden them. They are also very expensive to acquire and also don’t make durable solid jewelry.
The best balance of pure gold and other metal alloys are 18k and 14k gold karats. Although they contain more gold content, they have enough metal alloys to help with hardening the god and making it durable. While they are not as cheap as 9k and 10k gold, they are also not as expensive as 22k and 24k gold.
2.Know Which Karat Is Best for Making Jewelry
After understanding the meaning and characteristics of the different gold karats, it’s easier to identify which karat is suitable for making quality jewelry. While all the karats can be used to manufacture gold jewelry, each of them has a limitation. Therefore, each karat is better suited for certain types of jewelry.
Because low karat gold is cheaper to acquire, you can afford to make low-cost jewelry and get a profit. The quality, however, will be poor, with a pale color that isn’t appealing and little to no value. Jewelry made from 9k and 10k gold is also not durable since it’s prone to tarnishing. Hence such gold karats are better suited for making gold fashion jewelry.
High karat gold on the other hand has more purity and will have a higher value when used to make jewelry. They, however, will not be durable either, despite having better quality. Although they won’t tarnish easily, their soft nature will cause them to deform or wear off easily due to scratches and dents. For this reason, you’re better off using 22k and 24k gold in gold plated or filled jewelry which requires a thin layer of gold coating.
14k and 18k gold are therefore the best karats when it comes to making jewelry. As mentioned, they have a good balance of both purity and durability. In terms of cost, they are cheaper than 22k and 24k but in terms of quality, they have a higher quality than 9k and 10k gold. Their intensive color and luster also make them more appealing, although they are not as harsh as with higher karats. That is why most jewelers use 18k and 14k gold in making fine gold jewelry. You can use them to make expensive, necklaces, earrings, bangles, rings especially wedding and engagement rings.
Another thing to consider when picking the appropriate gold for making jewelry is its color. As mentioned, low karats have pale unappealing colors, and high karats can be too intensive and harsh especially on pale skin. Additionally, depending on the metal alloys used, gold can have different colors. The most common ones are yellow, white, and rose gold. 18k or 14k white gold, for example, is a better option for rings with diamond settings. This is because the white color will not interfere with the diamond color. The 18k or 14k rose gold on the other hand is a perfect complement for pale skin. It is not as harsh as with 22k and 24k gold, but it’s also not as pale and faded as 9k and 10k gold.
3.Know Where to Buy Gold for Fair Price (Find Some Reputable Gold Suppliers)
Being a valuable metal, gold can be expensive to acquire. To make a profit, however, you need to cut down on the costs. So, once you’ve understood what gold karats are best for making jewelry, you should identify places where you can purchase the gold at fair pricing.
Some countries have cheaper prices for gold than other countries. In Hongkong, China, and Dubai you can find gold at a very cheap price. That is because their mark-up or premium is lower than other countries, and there is more gold available there for trading.
Therefore, identify cheaper countries that sell gold at fair prices and find reputable gold suppliers from there. The best gold suppliers for making gold jewelry are gold retailers and bullion dealers. Their prices are fairer especially if you buy the gold in bulk. Ensure you use reputable dealers, that way you can be sure of the purity and quality of gold you’re getting for your money. Some of the notable gold retailers you can trust worldwide are:
- Heraeus Group
- Metalor Refining Group
- Emirates Gold DMCC
- Tanaka Kikinzyoku K.K.
- Pamp SA
- Argor-Heraeus SA
Also, remember to buy gold as bullions or bars since they have the lowest premium added to its melting price. This is because less work and effort go into refining and producing bullions and bars.
4.Know When Is the Best Time to Buy Gold
Another way to save on cost when acquiring gold for making jewelry is knowing the right time to buy it. Proper timing, in this case, is very crucial. The price of gold is always affected by its demand and supply in the market. When the demand is high but the supply is low, gold tends to be very expensive. Similarly, when the supply is high but demand is low, the gold will be more affordable.
It is said that during the second half of the year, between April and June, the gold price is at its lowest, hence the best time to buy the gold. During the third quarter from July to September, gold’s price is at its highest, therefore, avoid purchasing gold at that point.
Other useful tips include waiting for uncertain times to buy gold. That is when most investments and stocks aren’t doing well. Also, keep an eye on the price changes as well as the market demand for gold, that way you’ll be ready when the gold price is at its lowest. You can also make a point of buying gold whenever you can, in small quantities regularly. The best time, however, is when many people are selling gold, they’ll be more competition, hence cheaper prices.
5.Know How to Negotiate the Gold Price
In a business, you won’t always end up paying the exact cost of a product. There is always room for negotiating and reaching a consensus where everyone is happy. The same applies when buying gold. You can cut down on the price if you have the right negotiation skills. The following are some tips that may help you know how to negotiate the price of gold:
- Knowledge is power. The more you know about gold the better position you are in to negotiate. Get information, not just on the gold but on the market trends as well. Find out the pricing trends and compare different suppliers. The more research you do the better understanding you have of the market. So, you know the best real deal you can get for the gold.
- Understand the seller’s negotiation strategy.In a negotiation process, keep in mind you’re not the only one looking for a good deal. Even the supplier wants a profit from selling to you. Therefore, take time to understand the key metrics of his negotiation and use them to your advantage. You’ll be able to tell whether the price they’re offering is the best there is or if there’s room for further negotiating.
- Have a clear mindset and goal.If you don’t have a clear mind and goal when walking into a negotiation you may end up paying more than what you originally intended. With a clear goal and idea, you know exactly what you want out of the deal so you won’t be easily swayed.
- Take a multiple-contact approach.This means working with the pricing from different vendors. That way you’ll know what’s the best deal you can get. Also, comparing the prices with that of the competition is a great way to tip the negotiation in your favor. If the supplier can offer a better deal, they won’t lose you to the competition.
6.Know How to Make Your Own Gold Jewelry
Now you have an understanding of the different types of gold, the best kind to use for jewelry, and where and when to buy them at a fair price. What’s left is knowing how to use the gold to make beautiful pieces of jewelry. There are many ways to make gold jewelry. These methods include, handmaking, die striking, electroplating, and casting process.
Beginning with handmaking, it’s a long intricate process that takes extra effort and concentration, it involves first melting the gold, rolling it in a molten state to form a sheet that can then be shaped into the desired styles. Afterward, the different pieces are soldered together and polished for a shiny finish.
Electroplating and electroforming, on the other hand, are techniques used in layering jewelry with gold. Electroplating for example uses charged liquids to add a layer of gold on a base metal to give the jewelry a gold finish. Electroforming is used for creating overlay type of jewelry, which involves layers of gold stacked together to come up with the desired thickness.
As for gold casting, it’s a popular process when it comes to manufactured jewelry. It involves big computerized machines like 3D printers that create wax designs of the jewelry and Plaster of Paris that are used to mold the design. It’s a quick and easy way to produce many pieces at a time. Die striking on the other hand is a simple manufacturing process for thin and lightweight pieces of jewelry.
There’s nothing wrong with wanting to make your jewelry. In a sense, it’s cheaper than buying it from a jewelry shop. This way you also have control over quality and design. By following the tips you’ll have an easier process of successfully creating beautiful gold pieces and making a profit from them.