Investments Tips for The Average Joe

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 large majority of jewelry purchases, people pay far too much a price. The typical jewelry sale is computed at “triple keystone” price, which the trade refers to as triple cost. Therefore, if a jeweler shows you a book in which an item is listed at $3,000, he has probably paid $1,000 to get it. He might may give you a “discount” of a 20 percent, reducing the price down to $2,400. Don’t think you’re taking advantage of his kindness – he will be pocketing $1400, a 140% profit on an item he bought for $1,000. You need to know the essentials 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 that is 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. In England, people have high regard for 9-carat gold, but that is not the case in the US., where it is classified as costume jewelry and hence not a good investment. You may never be able to resell it for an amount close to how much you bought it for. In general, jewelry is sold for the pure gold weight. You must weigh your gold jewelry on a jeweler’s scale to know its base value. Regardless of its weight, you should make deductions for the gold’s alloy content: for example, as 18-carat gold is equivalent to 75 percent gold, 25 percent must be deducted from the value to in order to determine 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.
Understanding Gold
On the other hand, if you purchase the same 18-carat jewelry on Forty-Seventh Street, you should find a shop that sells it for around $4,000, approximately 33% more than its weight. Outside the jewelry district, the standard is triple keystone, and the same pieces can likely be bought for around $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.” But if you were to sell such designer pieces, even if you will surely get some premium over weight, don’t expect it to be significantly more than the weight an average gold piece would bring.Understanding Gold