Pricing Gold Chains Like Jewelers

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.

Pricing Basics

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).

Price Matching

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.

Gold Volatility

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.

Important Jewelry Shopping Tips

When you are in the market for a new piece of jewelry, it’s important to be aware of a few key factors. First and foremost, getting beautiful jewelry at a great price requires knowledge. But what knowledge, exactly? In a nutshell, always do research on the item you are looking for before buying. We’ll delve into the kind of research you need to accomplish, as well as other critical jewelry shopping tips all consumers should be aware of. Simply read on, and consider yourself a jewelry shopping pro.

Doing Your Research

Though many shoppers would agree that research is important, they often don’t even know where to begin. Here are the three main things you need to know before purchasing jewelry:

1. Price:

Price comparisons are easy to do. Go online and type in the name of the item you are looking for. Then, visit a few different websites to get a good idea of what constitutes a reasonable price range for the jewelry you are interested in purchasing. Heading to a few local jewelers can also help gauge what the item is retailing for, though it takes much more time than a simple online search.

2. Details:

Now that you have a good idea of the price range, examine the exact details of the jewelry you are considering. Though one price may seem much lower than another, it’s not necessarily a bargain – with jewelry, you usually get what you pay for. Always pay attention to the exact weight of gold, the karat of the gold, and the quality of the stones if there are gemstones. The price of a gold ring, for example, can vary greatly depending on the weight of the ring. This is something that isn’t easily determined by the naked eye, but will make a big difference in the quality and worth of the ring. Keep in mind that:

- Gold and platinum jewelry prices are based on the weight of the item, and the current market prices. You are likely to get a better deal on the same ring online when gold and platinum prices are low, since they adjust pricing quicker to stay competitive. At regular retailers, the only price cuts you will receive are during sales or liquidations. Even then, check pricing to ensure that the 50% discount they are offering actually brings the price of the jewelry below market.

- Gold is not created equal, and purity of gold is measured in karats. The higher the karat, the more pure the gold and the more expensive the jewelry should be.

- With diamonds, always consider the 4 C’s (cut, clarity, color, carat), which combine to determine the value of a diamond. You might be able to buy a large diamond of poor clarity for the same amount as a small diamond that is near-flawless, so don‘t get drawn in by size alone. Many other types of gemstones have a preferred shade or color; take the color of the gems you are comparing into consideration when evaluating prices.

3. Quality & Craftsmanship:

Quality and craftsmanship is the most intangible factor in jewelry buying, but it’s no less important than price comparisons and paying attention to details. Shoppers can determine quality by paying attention to the way the jewelry is crafted – make sure there aren’t any flaws or ridges in gold pieces of jewelry. If the jewelry has a design on it, make sure that the design is seamless and doesn’t begin and end awkwardly or misaligned.

If possible, find ratings and feedback on the jeweler you are buying from. Find out who is actually making the jewelry they are selling, and ensure that it is coming from a reputable jeweler. A quick Google search can give incredible insight about past consumer experience with a particular jeweler, and is worth the five minutes it takes.

As always, Apples of Gold jewelry meets and exceeds the factors necessary for quality jewelry at an incredible value. Prices are adjusted quickly to reflect the market, allowing buyers to get much better deals than in stores. We also work with customers to create special custom pieces, and have a proven track record of customer satisfaction. Finally, our beautiful jewelry is backed by a 100% guarantee and stellar return policy to allow our clients to rest easy.