precious metal : My Gold Jewellery

As I write gold is worth about $630 US an ounce. Since August 2005 the price of gold has risen from $447 US which represents a whopping 43% increase.

So yes, your jewellery must be worth a little more if it is made of gold. Silver too has increased a good deal. However, don’t forget that the gold in your jewellery is made from an alloy of gold. That means that other, usually less costly metals, are mixed in with the pure gold to make its carat.

Chinese people like to buy jewellery made from 24 carat gold and some folks from the Arabic counties prefer 22 carat gold, but the rest of the world likes 9 carat which is the most used in Australia and a good deal in England, 14 carat and 18 carat which is used in the USA and Europe.

Let’s have a look at the factors that are important to the price of your jewellery. If your gold jewellery is made from nine carat yellow gold then it only has 37.5 percent gold in it, if it is 14 carat then it only has 58.5 percent real gold in it.

Now understand that an average ladies ring might have 2.5 grams of gold in it and at current retail rates that gold content might be worth say, $30 per gram. So if gold went up a further 50% then the gold in your ring won’t go up 50% because it is an alloy and not pure gold, and there is only a small bit of gold in the ring so your $600 ring might be worth another $30 or so.

Jewellery is priced on not just the cost of the gold content and the cost of even the precious stones but also the difficulty to manufacture it, and the design and the brand name of the manufacturer.

by Gary Hocking