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Gold Impact on Jewelry Pricing

Gold jewelry comes in different types based on purity, durability, and price. Knowing the difference helps you understand what you’re really paying for.

24K Gold : This is 99.9% pure gold and has a bright, deep yellow color. It is soft, scratches and bends easily so is not used for western jewelry and is best used for investment purposes

18K Gold : 75% gold and alloyed with other metals such as copper, silver or zinc. The alloys make gold harder and more scratch resistance.

14K Gold : 58.3% gold and is also alloyed with a variety of other metals such as copper, silver or zinc. 14Kt is harder and more durable than 18K gold and is well suited for those with active lifestyle.

White Gold: Palladium is often used as an alloying metal in high-end white gold jewelry. However, more than 90% of white gold jewelry is rhodium-plated to achieve a very bright, white, and reflective appearance. Rhodium plating also provides increased surface hardness and scratch resistance.

Every increase in the price of gold directly increases the metal value of gold jewelry. While the impact on smaller pieces may be relatively modest, the effect becomes more significant as jewelry weight increases. For example, a $1,500 increase in the price of gold would add less than $100 to the gold value of a 3.32-gram 14-karat gold ring. However, the same price increase would have a much greater impact on heavier pieces, such as bracelets and necklaces, where the additional gold weight can substantially increase the overall metal cost.

Gold is priced on the global market in troy ounces, while jewelry weights are commonly measured in pennyweights or grams. One troy ounce is equal to 20 pennyweights (dwt) or 31.1035 grams. One pennyweight is equal to 1.5557 grams.