Where Do Jewelers Buy Gold? Bet you’ve asked yourself and the internet this question. Sometimes, this happens out of curiosity, but there are cases where you ask this question because of quality vs. pricing issue, and you just want to make sense of things.
And if you are an entrepreneur, you’d ask this question if you wanted to find a reliable source of gold should you decide to pursue the jewelers’ path later.
This article helps you find answers to this question. So, keep reading.
Where do jewelers buy gold?
Most jewelers get their gold from the gold refineries, which is made possible by the fact that most of the refineries such as Handy & Harmon and Johnson Matthey, among all others, do not sell all of the refined gold in their reserves to the private mints, governments or banks.
The refineries will sell some of their products to different distributors who will, in turn, sell the gold to jewelry manufacturers.
The gold that is sold by the distributors is of certified purity, and it comes in smaller bars, also called the casting grain. This casting grain is made from gold that has already been turned into alloys, and it’s available in 18K, 14K, 10K, etc., then poured while the gold is still molten. This gold is poured through a ceramic sieve of sorts, and the gold flows into the water, where it solidifies instantly into little pieces the shape and size of rice or even smaller. The gold is often sold in ounces or bigger sizes to jewelers who will, in turn, melt and cast the golf to form jewelry.
Other jewelers buy their gold from bullion dealers, and others get the gold directly from the refineries. Bullion dealers and the refineries’ distributors are preferred to buying the gold from the public even though buying from the public is another option.
When do jewelers buy gold?
You cannot buy gold at any time you wish to. The timings are crucial, especially because the price of gold is affected by the market.
Most of the gold jewelers around will have a fixed condition that determines when they buy the gold, and in most cases, it is the stock-out ratio.
The jewelers, therefore, buy more gold during the festivities and during the wedding seasons, and they make sure to have more than enough gold to meet demands.
But like all other industries, the gold jewelry industry has its ups and downs, meaning that the time the jewelers choose to buy their jewelry will differ, but the gold is mostly purchased when it’s needed.
What’s the cheapest country to buy gold in?
There are different markets for gold spread throughout the world, but the country you choose to buy your gold from will vary depending on the cost of gold in the country.
Generally, Europe and India are some of the biggest suppliers of gold in the world, and though you might hear that gold is sold very cheap in a specific country, you need to remember that gold is sold at more or less the same price across the world.
So, if you come across a recommendation for gold being sold at the lowest heard price in country X, you might want to question that gold.
But here’s what happens when they say that country X sells gold very cheap – often, it means that the price of gold in that country is going for a few dollars per ounce less in that country than the other country you are comparing prices in.
And when this happens, the gold traders in the ‘cheap’ country will ship out their gold, meaning that the price difference is reduced to just about zero. Unfortunately, this happens all the time, meaning that you can’t really find a country that always sells their gold very cheaply.
However, you could get a good deal by buying second-hand gold jewelry for a price lower than what gold is sold for at the time.
This way, you profit from the gold jewelry purchased at a low price and sold at a higher price tag. Note that for you to make a profit out of the second-hand purchases, you have to get the gold refined first. In most cases, if you cover your overheads, you will be able to easily enjoy working as a jeweler.
Now, if you wish to invest in gold, it is recommended that you settle on buying the gold ingots rather than a gold coin. While smaller ingots cost more, ingots are generally better investments than coins, and the ingots offer a higher return on investments.
Which is the best jewelry brand to buy gold jewelry?
One of the top-recommended jewelry brands that you could buy your gold jewelry from is the Diamond District Block. This brand boasts a hugely positive reputation, and it’s known for its long line of the most spectacular gold and diamond jewelry collections.
The best part is that their pieces are affordably priced, and they have an easy payment option. They also provide all the additional/ related information that you may need about their products, and this enhances customers’ shopping experiences at the store.
Diamond District also offers a 60-day worry-free return for their jewelry, as well as lifetime guarantees on most of their gold and diamond jewelry pieces.
But if you aren’t sure about brands, you can still find the best gold jewelry if you take a keen interest in the hallmark stamps on the jewelry.
The 916 hallmarked gold jewelry, for example, is 22ct gold while 750 hallmark is an 18ct gold jewelry. You also need to make sure that you buy the gold with a BIS Hallmark, and it must come with a proper GST tax invoice.
If you have been looking for information about gold jewelry and where to buy the jewelry from, we hope that the information shared above helps you make the best choice.
Just bear in mind that the jewelers buy gold from the refineries or their distributors and that the market prices of gold are often similar.
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.