GOLD! WE’RE IN THE MIDDLE OF ANOTHER GOLD RUSH and it could make the California (1848-1855) look almost infantile. Well, OK…that may be an exaggeration, but gold is hot and pricey and still going up, up, up on the exchange charts. A bad economy, with no indication of when it will get better, doesn’t help most people’s pocketbooks. But oh…is it good for gold!
You see, gold is the ultimate default setting. People flock to gold when their money loses value, or when their economy goes south, or when their investment vehicles look hazy. Gold is then the big safety zone. A few gold bars under the pillow at night will certainly help anybody sleep better in bad times. Right now, the price of gold is high. But, you really should understand something about the value of gold in both good and bad times, especially if you are in any part of the jewelry or fashion industry. Gold captures men’s hearts and minds, and many will sell their souls for it!
Let’s set up a “pretend” situation in which you have several pieces of gold to sell. Follow these instructions and you’ll find out the gold value of jewelry, and be able to calculate the value of any piece of gold you or your customers might have.
BUT FIRST… HOW ABOUT CALCULATING THE BUYING POWER OF FASHION GOLD — REAL OR FAUX – IN FASHION AND ACCESSORIES? GOLD, GOLD DUST, GOLD THREADS, GOLD LAME, YOU NAME IT. EVERYBODY WANTS A TOUCH OF GOLD. HERE ARE SOME PRODUCTS TO STIMULATE THE MIDAS-MENTALITY:
- Gold plated rope chain. Gorgeous, “King Tut” richness!
- Gold plated dangling concentric earrings. A real celebrity look!
Figuring It All Out
ALL GOLD IS WORTH the same price, no matter whom you sell it to. But getting the same price from everybody is just about impossible! If you are going to buy or sell gold, or otherwise just deal with it as a retailer, there is a bevy of things you’ll want to know, not the least of which is the going rate for gold.
You also have to understand karats. 24 karats, for example is 99.9 percent pure gold. It is also very soft, which is why it is rarely used for jewelry. 18 karats is 75 percent pure, and it is the preferred jewelry gold in Europe. 14 karat gold, which is mainly used in the United States, is 58.33 percent pure. And 10 karat gold is 41.6 percent gold, sometimes loosely referred to as “gold-filled”.
Gold is priced by the troy ounce. So, you ask, what the devil is that? A troy ounce is not the same as an avoirdupois ounce! A troy ounce equals 31.1 grams, and is somewhat heavier than an avoirdupois ounce, which is 28.3 grams. Don’t confuse these two, because it can give you very different idea of what your gold is worth if you do! To make things easier, you can get a conversion table on the Internet. Try Yahoo.
Some commercial buyers give a gold seller an offer in pennyweights, to be more exact. A pennyweight is a unit of mass, which is the same as 24 grains, or 1/20th of a troy ounce, or approximately 1.555 grams. Once you get the exact weight of your gold, you can multiply that by the amount of gold in the karats, and then multiply that answer by the present cost of gold, listed on many financial websites. Sounds good? Well, you aren’t home yet!
First of all, you really can’t hold fast to any formula that promises to tell you what you should get for your gold. This is an Iffy market, and not everybody is ethically pure. (Or did we really have to tell you that?) Then, too, the value of gold changes from day to day. What gold sold for yesterday may have little relation to its selling price today.
And, then, there are also costs involved. So, once you have the value of your gold jewelry, you have to reduce it by the percentage that the buyer will take, which is normally 25 to 30 percent. Double check this carefully! You also have to consider a small percentage that the refiner will take, as well.
The Big Gold Formula!
Figuring the value of the gold in jewelry takes a few a simple calculations.
- Weigh the jewelry. If you don’t have a jeweler’s scale, use a regular kitchen scale that weighs in grams.
- Convert the weight of the jewelry into troy ounces. A troy ounce is 31.1.3 grams.
- Multiply the weight of the jewelry by the amount of gold in the karats; i.e., 10 karats = 41.6% gold. That will give you a formula of : Weight (in troy ounces) X .416.(amount of gold in the karats)
- Multiply your answer times the present cost of gold (available on many financial websites) and you’ve got the sale
value of your jewelry.
Gold and Fashion Accessories
IT ISN’T SURPRISING that when the value of a gold bar goes up, so does interest in gold of all sorts. Right now, gold is a big mover in the fashion industry. Gold-plate is in high demand in fashion jewelry. Gold lame and gold sequins are part of a new look in jewelry and costume couture, all very glitzy-ritz, and classy.
Valentino, Proenza Schouler, and Miu Miu are just a few of the top designers working with brilliant gold coloring for handbags. Dsquared2 presented a dynamic gold statement necklace as part of his runway show for Fall 2010. Balmain jazzed up a brilliantly colored military outfit with gold braid and buttons, real showstoppers in his runway presentation.
WHO DOESN’T ADORE GOLD? HERE ARE SOME TERRIFIC PRODUCTS TO HELP YOU GLITTER-UP YOUR FASHION CLOSET, ALL AT REMARKABLE PRICES:
- Gold beaded envelope style evening bag. Elegant!
- Large gold pageant crown with scrolling clear crystals in gold plated settings.