For those of you who are thinking about selling gold jewelry, it is crucial that you understand fully how to determine the price for gold jewelry.  Not only this can help you to tell a good deal from a bad one, it also helps to analyze your competitors and understand the market better before you make any investment.

Gold price
The most important part of wholesale gold jewelry trading is to understand the breakdown of the cost of a piece of gold jewelry.  Let‘s say the current good price is £500 per ounce. To calculate the cost of gold for a piece of 14 karat gold jewelry that weighs 3 gram without any stones, we first divide the price per ounce by 31.5, to get the price per gram, which is £15.87.  This is the price of pure gold.  To convert this to 14K gold, knowing that there are 24 karats in pure gold, we divide £15.87 by 24 and multiply the result by 14.  The price per gram for 14k gold is roughly £9.26.  Therefore, the total cost of the gold for a 3 gram ring would be £27.78.

Labor Cost
Another major part of the cost for a piece of gold jewelry is the cost for labor, especially for pieces set with precious stones.  Gold jewelry generally requires some filing and polishing after it is cast out of the mold.  The labor cost can sometime be as high as £2 per gram, depending on the origin of the jewelry and the style.  In addition, the cost of setting any stones on a gold jewelry can be over one pound per stone.  Certain advanced setting such as channel set and invisible set cost even more because of the high level of craftsmanship required.

Markup of Competitors
A good way to analyze if a certain style of gold jewelry is profitable and beneficial for a business is to understand your competitors’ prices.  Since you already know how to calculate roughly the cost of a piece of jewelry, and therefore the price that you can get it, buy looking at the markups of your competitors, you may get an idea of how severe the competition is.  For instance, if the competitors are marking up the jewelry three times of the cost, the competitiveness of that style is not really that high.  On the other, if everyone has the same pricing and the markup is 50% above the cost, the style might have already saturated the market.

Volume trading
Another angle of looking at the pricing issue is that when the competitors are marking up at a low margin, the item is probably accepted by a lot of consumers.  The justification behind it is that when the profit per piece is low, and people are trading them actively, there probably is a high demand for it.  On short, the higher the profit margin, the low the volume of sales and the low the profit margin, the higher could be the volume of sales.  Another point that is worth noting is that the volume theory also applies to jewelry vendors.  If you buy in large quantity, pricing should go down automatically.  Therefore, running a successfully business involves getting the balance between all the factors within the resources and infrastructure you have such as employees and capital.

Closeout Jewelry
Since jewelry business is highly time-sensitive, styles that were once popular several months ago may not sell at all couple months later.  Therefore, when buying gold jewelry wholesale, you should estimate the monthly sales and stock according to the sale volume.  For example, you may want to stock a certain style for two months worth of stock and restock it when it runs out in order to minimize the closeout items in the inventory, which is sometimes referred to as inventory shrinkage.

By understanding the market and your competitors before buy wholesale gold jewelry, you can reduce the mistakes during your entrepreneurial endeavor, thus increase the chance of succeeding tremendously.

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Whether buying gold jewelry for yourself or a loved one, deciding what and where to buy fine jewelry can be a tough decision. Gold jewelry is an item you’ll cherish for many years to come – maybe even a lifetime! So, you’ll want to make a wise choice. Here are some quick do’s and don’ts to remember when buying gold jewelry.

Do Buy Gold Jewelry from a Company You Trust

When you want fine jewelry, choose a company or Web store that specializes in fine jewelry. Don’t expect to find the best of jewelry at a company that offers everything including the kitchen sink! A specialist can assist you personally and provide a wider variety of gold jewelry.

When searching online, be specific in your searches, and do research on the company before making a purchase. Check to see if the company is affiliated with a professional trade association such as the Jewelers of America (JA) or the online Better Business Bureau.

Do Look for Guarantees or Warranties

Before buying gold jewelry from a company (online or offline), get a detailed explanation of their return policy in case the jewelry is not what you expected or has a defect. Some will offer manufacturer’s warranties as well.

Do Shop for Quality, not Just Discounted Prices

It’s tempting to buy fine jewelry at a discount to get a great bargain. But, what are you really getting? With gold jewelry, for example, find the karat or quality mark on the actual jewelry to see if it’s real gold or not. And remember, the karats are an indication of what percentage of gold is in the jewelry piece. 24K is pure gold, 18K is 75 percent gold, 14K is 58.3 percent gold, and 10K is 41.6 percent gold. So, what is the other percentage? It is usually made up of alloy, or different metals that add form and strength to the jewelry item.

Don’t be Hasty

Look around at several gold jewelry pieces before making a decision. Consider the price of the jewelry as well. Ask about these factors to determine if the fine jewelry is worth its price: karat weight, total weight, engravings, design, look and feel, ornamental detail, and the finish.

Don’t Buy from Suspicious Companies or Persons

If you have an uneasy feeling about buying fine jewelry from a particular person or company, don’t do it. The jewelry could be stolen or fake. Either way, you’ll lose in the long run. Always choose a reputable company that specializes in fine jewelry andor gold jewelry.

Don’t Forget the Clasp and Measurements

If buying for others, find out what size gold jewelry they wear, such as ring size, neck size, wrist size, or ankle size. Whether it’s gold necklaces, gold earrings, gold bracelets, gold bangles, or other types of jewelry, you’ll need to know the size and style that fits you or your loved one. Also, examine the clasp to be sure it’s easy to attach and of good quality.

Use these tips as a starting point to get the gold jewelry you need. The right gold jewelry piece can be worn for a lifetime!

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Gold is a chemical element, and in chemical terminology its meaning is “shining dawn”. It is a precious metal, used mostly for jewellery. Gold is of bright yellow or metallic yellow colour and is considered to be a symbol of wealth to some extent. Gold is used not only for jewellery making, but it is also used in the field of dentistry, photography, colouring and electronics and is currently used for cancer treatments as well. Gold has silver traces and sometimes may have copper and iron traces when it is discovered in its natural form. A small gold piece is of usually 70% to 95% gold and the remaining part is silver. Gold is among the heaviest minerals. The purity of gold is measured in Karat. The karat is a measurement on which the gold is determined to other metals on a scale of 1 to 24, in which 24 karats means the purest gold.

According to a geological survey, there are 72 countries that are producing gold. China is the leading gold producing country in the world. After that, South Africa, and then comes Australia and then United States, Peru, and then is Russia, Canada and a big list of almost 72 countries that are famous for gold producing.

Basically, China and South Africa are the top two leading gold producers but the collectors can rarely see a gold specimen from these countries due to restricted nature in their mining operations.

Australia is another large gold producer in the world. In Australia, gold is mostly found in Kalgoorlie, Western Australia, Victoria. The Pacific Island of Fiji is well-known for gold production in Emperor Mine.

In Europe gold producing countries are Rosia Montana, Transylvania, Roman, Sweden, Brusson, Val D-Aosta, Italy and England. Itaituba and Para are the two well-known places of South America, who are in the top list of gold producing countries. Brazil, the Bolivar province and Venezuela are also gold producing countries.

In Canada, gold producing states are Timmons Area, Ontario, the Red Lake Gold District, the Dawson Mining District, Yukan Territory.

In the United States, the gold producing states are California, Alaska, Colorado and Nevada. In the United States, out of all the states, Nevada is the top gold producing state. Alaska has many deposits in the rivers, and the famous ones are Kenai Peninsula District, the Valdez Creek District, the Hatcher Pass District and the Peterville District. The state of Alaska has preserved many historical places deposits for public recreational mining.

The total gold production of China has steadily increased from 7.4% per annum to 66.9% since 1999. According to a survey in 2007, China became the top gold producing country by over taking South Africa, which was at the top position for over 100 years. According to a certain estimate in 2009 the total gold production by China is near 300 tonnes. China reserves the gold which is 78% of the total foreign reserves. United states hold 8,133 tonnes, which is 78.3% of its foreign reserves. China has increased its gold reserves rapidly, and by 2050, China will overtake the United States as the biggest economy in the world.

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