If You Think You Understand Sales, Then This Might Change Your Mind

Useful Tips for Gold Jewelry Shoppers 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 usual jewelry sale is computed at “triple keystone” price, which is known in the trade as calls triple cost. In short, if a jeweler shows you a book where an item is listed at a price of $3,000, he has likely has shelled out $1,000 for it. He might offer you a “bargain” price of $2,400, which is 20 percent less than the original price. Don’t feel guilty – he will be pocketing a 140-percent profit, or $1,400, on something for which he paid only $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. Using the same logic, “375” or 9-carat gold is 37.5 percent pure gold. In England, people think highly of 9-carat gold, but it is merely considered costume jewelry in the U.S. and not a good investment. You can probably never resell it for any amount close to what you paid for it. Jewelry in general is sold for its pure gold weight. To know your gold jewelry’s base value, you have to weigh it on a jeweler’s scale. 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. Hence, if the gold is presently priced at $1,000/ounce, and you have an 18-carat 4-ounce piece, the value of pure gold in the metal is $3,000, which is the least amount you could get if you were to sell it.
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On the other hand, if you bought the same 18-carat piece on Forty-Seventh Street, you will most likely find a store that sells it for some $4,000, which is around a third above its weight. Triple keystone is the standard outside the jewelry district, and you should be able to buy the same pieces for about $9,000. Clearly, the above doesn’t apply to pieces created by designers like Cartier or Bulgari, where a three-ounce pure gold bracelet can have a price tag as high as $30,000 – its weight 10 times over. 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.” However, if you should sell these designer pieces, although you will certainly get some premium over weight, it is not going to be vastly more than the weight average gold jewelry would bring.Rings – Getting Started & Next Steps