Pricing Gold Chains
Gold Curb Chains
Gold Figaro Chains
Gold Rope Chains
You’ve picked the perfect gold chain. But how can
you know you picked the most competitively priced chain?
There are a few simple guidelines that will give
you the confidence to know you purchased the your gold chain at the right price,
Gold Chain prices are based on 3 main factors
· Gram weight of
the gold chain (actual amount of gold in your chain)
· Price per gram
· The fluctuating
price of raw gold
Once you have a firm understanding of these 3
points, especially the weight of a gold chain and the price per gram, you will
never again over-pay for a gold chain.
2 other factors that you can also consider are:
· The labor
intensity of your particular gold chain
· Style and Metal
Type (Yellow Gold, Two-Tone, and White Gold)
At Apples of Gold Jewelry, it is our goal to
educate you on how to effectively purchase gold jewelry, because we are
confident that our prices are not only reasonable, but lower than most other
jewelry stores, including our competitors online.
Each item of jewelry, including gold chains,
weighs a certain amount. Gram weights are the standard unit of measurement for
gold jewelry. Jewelers use finely tuned scales to weigh items of jewelry in
order to determine their gold value.
Never buy a gold chain from a jewelry store who does not publish the gram
weight of their item. This almost always means that they are over-charging for
their jewelry and they do not want you to know it!
Always find out the gram weight of the chain you
are purchasing. This will not only help you determine the value and price of a
gold chain, but it will also give you a sense of the size, depth, and
substantive qualities of a chain.
We sometimes even see jewelers who publish their
gold chain weights within a range of gram weights. For example, they may list a
gold chain as “8.0 – 15.0 grams”. This is a significant difference for this size
of a chain! Although gram weights are always approximate for gold jewelry, and
gold chains in particular, the difference should be no more than 2%-3% on
average. The difference between 8 to 15 grams, for example, is almost 50% and
that is unacceptable.
Once you know the gram weight of your chain with
2-3% room for error or variance, you have the 1st
step of determining if you are getting a value for
Price Per Gram
The next step is simple. Once you know the gram
weight of your gold chain, you need to determine what the “price per gram” is.
To do this, you simply take the price of the chain and divide that by the gram
Example: If your chain is priced at $575.00 and
the gram weight is 25.0 grams. Divide $575 by 25.0 and you will get $23.00. This
means that you are paying $23.00 for every 1 gram of gold in your gold
You now will have a comparison basis for deciding
to purchase your gold chain from one jewelry store over another—at least as far
as price is concerned.
In another example, if a gold chain weighs 10.0
grams and is priced at $300.00. $300 / 10.0 = $30.00. This means that you are
paying $30.00 per gram for your gold chain -- a lot more per gram than
our example above at $23 per gram.
Labor Costs & Type of Jewelry
The price per gram will vary based on several
factors, including the labor intensity of the particular chain, the price of raw
gold (which as a commodity will shift daily), and the amount that your
particular jeweler has decided to mark up your gold chain.
Metal types and colors will cause a shift in the
price per gram of your chain. For example, white gold tends to be more expensive
than yellow gold, as does two-tone gold. The reasons for this are mainly because
of the added time and labor that a gold chain manufacturer incurs in producing
white gold vs. yellow gold. Other reasons include such processes as rhodium
plating for white gold and other manufacturer processes that increase the cost
Another example is hand-made gold chains vs.
machine-made chains. Your standard Figaro gold link chain, although typically of
high quality, is not as expensive as an individually made, hand-made or
hand-polished chain. Hand-made chains are, of course, higher quality—but that is
not to say that machine-made chains are poor quality. It is like comparing a
Cadillac to a BMW, for lack of a better example. Both are solid, high quality
automobiles, but one is slightly known to be higher in quality and also slightly
more expensive as a result.
These are labor costs handed down from
manufacturer to wholesaler to retailer and ultimately to the consumer. Labor
costs in jewelry tend to stay the same, or are more stable than the constantly
shifting price of raw gold materials, except when there are increases in the
cost of living.
Price of Gold
Gold is a precious metal and a traded commodity,
and therefore, is subject to daily price fluctuations. As gold increases in
value, so will the “price per gram” of your gold chain or other jewelry. There
were times when we sold gold chains for about $10.00 - $11.00 per gram. This was
at the turn of the century. As of year end 2007, our typical gold chain prices are
approx. $22-$23 per gram, depending on the shifting price of gold. We have
observed many other jewelry stores offering gold chains for between $30 - $35
per gram (between 40% to 50% higher than Apples of Gold Jewelry for the same
When comparing prices, it is not necessarily
correct to compare what gold chains sold for 5 or 10 years ago, but what other
jewelers are selling the same gold chain for today.
Once you have the tools to compare the gram and
the price per gram of your gold chain, you can more readily “comparison shop”
and be confident that you are getting the best deal! Our goal at Apples of Gold
Jewelry is to give you the best deal for the same high quality product.
of Gold and Retail Jewelry