How is Gold Jewelry Priced?

Several factors affect the cost of gold jewelry. One factor is, naturally, changes in the price of gold. Another key factor is karatage, the amount of pure gold vs. the amount of less expensive alloys. The higher the karatage, the more expensive the gold jewelry piece will be due to the amount of pure gold that it contains. Without a doubt, the price of gold jewelry is much higher than the price of gold.

We all know manufactured gold jewelry has costs associated with it, such as design, labor, factory costs, sales and marketing, transportation, and so on. Several factors affect the cost of your gold jewelry. The weight of the gold in the jewelry is also a significant factor in its price. When determining the right karatage for a piece of gold jewelry, it is essential to consider how it will be worn. A substantial amount of gold is recommended for everyday pieces (such as wedding bands) or pieces with a higher possibility for abrupt contact (such as bangles). On the other hand, lighter pieces work well when dealing with earrings or pendants, where the risk of contact is lower and comfort trumps weight and durability.

The process used to create your gold jewelry also plays a role in its cost. The creation of gold jewelry usually starts with one of two processes, casting or stamping. Castings are made by pouring molten karat gold into a mold. Stampings are created using a press. Custom and more substantial jewelry pieces tend to be casted, while stamping is used for crafting commonly used parts, such as earring backings. The majority of jewelry sold in stores is created using a combination of casted metal and stamped metal components, which are then finished by jewelry artisans. The extent to which artisans are needed to craft the final piece can also play a significant role in the final price. For example, a straightforward assembly would require less time and incur less added cost than substantial hand engraving. Last but not least, it’s important to consider any other materials used in the creation of a design. Gold is often combined with an array of diamonds, and other precious and semi-precious stones, all of which must be factored into the final price.