Getting Creative With Gold Advice

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Tips for Buying Gold Jewelry Jewelry of all kinds, specially gold jewelry, is one of the most usual things to buy as gifts and for oneself. Unfortunately, in the huge majority of jewelry purchases, people pay an extremely high 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 may offer you a 20-percent “discount,” bringing down the price 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. It is important that you know the fundamentals of gold jewelry. Jewelry marked “750” contains 75 percent gold and 25 percent alloy, and that means it is 75 percent pure gold, equivalent to the purity of 18-carat gold. Gold stamped “585” is 14-carat and 60 percent pure gold. Following the same logic, “375” or 9-carat gold is 37.5 percent pure gold. People in England think highly of 9-carat gold, but in the U.S.it is considered but costume jewelry and therefore not a good investment. You can probably never resell it for any amount close to what you paid for 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. So, if the gold is currently priced at $1,000 per ounce, and you have a four-ounce 18-carat piece, the pure gold’s value in the piece is $3,000, which is what you could expect to get if you sold 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. Triple keystone is the standard outside the jewelry district, and you should be able to buy the same pieces for about $9,000. Of course, the above doesn’t apply to pieces made by the likes of Bulgari or Cartier, where a three-ounce pure gold bracelet can be sold for up to $30,000, or ten times its weight. But then again, there are rather well-designed pieces by world famous jewelers, so you will be paying a very reasonable premium for the design and the “name.” However, if you should sell these designer pieces, although you will certainly get some premium over weight, it is not going to be vastly more than the weight average gold jewelry would bring.Understanding Gold