Pricing Gold Chains Like Jewelers
December 31, 2008 by Afshin Yaghtin
Gold chains are by far the simplest types of gold jewelry to price. Learn how to price gold chains like professional jewelers!
The most important thing to look for is the gram weight of the gold chain in question. Once you have determined the gram weight, you are equipped for price comparisons.
Of course, keep in mind that price alone is not always the sole factor. Purchase jewelry only from reputable jewelry stores, and make sure they have a strong return policy, an established reputation, and excellent customer service.
Let’s use a 3mm gold rope chain for our pricing model. If a gold rope chain costs $450.00 and weighs 14.0 grams, you can do the math and realize that you are being charged $32.14 per gram of gold that is in that chain.
Quick Formula: Price of Gold Chain / by Gram Weight = Price per Gram.
You find another 3mm gold rope chain priced at $500.00. This chain appears to be $50 more expensive. Upon closer examination, the chain weighs 16.5 grams. Using the above simple formula:
$500 divided by 16.5 = $30.30 per gram.
The second chain is actually the better deal when you consider the gold content ($30.30 per gram of gold vs. $32.14).
This is hypothetical of course and prices can vary significantly from store to store. We have found that most online jewelers charge an average of 30% more for the same gold chain as Apples of Gold Jewelry.
This is why we are not afraid to disclose what many other jewelers fear to share.
Watch out for jewelers who do not disclose gram weights
Jewelers to stay far, far away from are ones who do not disclose the gram weight of their chains or who use a wide range to list the gram weight–such as, “Chain weighs between 16 – 23 grams”.
There should not be more than a maximum of a 10% variance in the gram weight of a gold chain or substantial piece of gold jewelry. So if a gold chain is advertised at 10.0 grams, it should weigh somewhere in the 9 – 11 gram range (and that is being liberal).
Reputable jewelers will also honor the gram weights of their chains by adjusting the price of a gold chain if the chain turns out to contain a significantly less gram weight than advertised.
There’s Always an Exception to the Rule
There are always a few exceptions. It is often not customary to advertise gram weights of wedding bands, diamond rings, and gemstone rings (although if asked, jewelers should always disclose the weight if available).
The reason being that items such as wedding bands or diamond rings, for example, are not solely based on the precious metals content. Much larger factors come into play, such as design, the labor of love and time it takes to create such rings, and in the case of gemstones and diamonds: the quality and rarity of the stones weigh far greatly than the few grams of gold such rings often contain.
These types of fine jewelry are often sold by the piece, rather than by the gram (don’t be surprised if a jeweler takes it personally when the mistake is made of evaluating such items based on gram weight alone. Just hang your head in shame at this point and swiftly apologize).
Jewelers who want your business will do their best to price match or beat other advertised prices. Of course, keep cool and reasonable. Don’t expect a quality jeweler to match the price of a gold chain you found at a shoddy looking jewelry website whose prices haven’t been updated for 5 years and who don’t provide a customer service phone #. Identify and compare with jewelers’ real competitors to get a better price.
Lastly, keep in mind that gold prices can be volatile and the gold chain that you saw advertised at $300 today may soon hit $350 if gold prices continue to rise, as historical gold prices have indicated over the last several years.
Likewise, with a significant downturn in the price of gold, you should expect gold chain prices to decrease over time.
Keep in mind that other factors such as inflation, increased business expense, and the struggle for many businesses to survive in tough economic times, may play a role in determining whether to increase or decrease the price of gold jewelry.
The price of gold is a large determinant of the price of gold jewelry, but it is also often a guideline–not a stringent policy.
You Might Also Like:
- TOP 10 MOST
POPULAR BLOG POSTS
- The Real November Birthstone: Citrine or Topaz?
- Why is Platinum More Expensive than Gold Jewelry?
- Understanding the Price of Platinum Jewelry
- Certified Diamonds vs. Non-Certified Diamonds
- Rhodium Plating White Gold
- Jewelry Hallmark Guide
- The 4 C's of Diamonds: Which C Matters Most?
- Platinum vs. Titanium Wedding Bands
- Price of Gold Per Gram
- Gemstone Ratings