There is a very simple formula for figuring out the price per gram forgold jewelry. First, you have to determine the price of raw 24k gold per ounce and then plug it into the simple formula below. You can get the daily price of gold at website’s like Kitco.com. I recommend using the 2nd London Fixed price, which most jewelry companies, wholesalers, and manufacturers use.
PRICE OF GOLD / 31.1 / 24 x [Desired Karat].
For example, if you trying to figure out the priceper gram for 14k gold at gold’s last closing price as of this blog post of $1,266.70 per ounce, you would plug in the below:
$1,266.70 / 31.1 / 24 x 14 = $23.76
So in this case, a 14k solid gold item of jewelry’s metal value is $23.76 per 1.0 gram.
It’s that simple.
Here’s a tip for gold jewelry shopping:There are multiple factors to consider when buying a piece of jewelry. There are labor costs from the designer or manufacturer, a mark up from the wholesale to the retailer and from the retailer to the shopper. So give some allowance for the time and labor that goes into an item.
For example, a manufacturer may charge $10 for labor for an item and the wholesale then marks that up to the retailer and so on.
Also, a simple piece of jewelry that is not as labor intensive and has high gold content, such as a heavy gold chain, should cost less per gram than a fine handmade ring that weighs just a few grams. The reason is that the time and labor and design that goes into making a wedding band that is made to order, for example, will be more labor intensive than a heavy chain which is machined.
When it comes to purchasing jewelry, you are paying for not only the cost of gold per gram but also the time and effort and cost that a jeweler or designer put into the item. This is why it is important to learn about gram weights in gold jewelry.
