EXTREMELY
USEFUL & VALUABLE INFORMATION
From
AMERICAN BULLION JEWELRY
Makers
of Fine 14k & 18k Handcrafted Gold “Bullion Bracelets”™
HOW
TO COMPARE THE GOLD VALUE OF DIFFERENT KARATS
&
WEIGHTS OF FINE JEWELRY IN A COMMON MARKET.
A
Little Math Will Ensure That You Receive Excellent Value In Jewelry!
Of
course, this does not apply to anything but solid karat gold jewelry. NOT
gold filled (1/20 14k GF) nor gold plated (GP) nor roll gold filled (RGF) nor
any other inferior metal. Do not forget to subtract the weight of any gemstones
or non gold additions, if any.
While the quality and finish of a
piece of fine jewelry is extremely important, it is not considered here.
We
are establishing only the comparative monetary market value of the pure
gold in a common market.
Always
start with the purity (expressed decimally) and the weight (in grams).
All
reputable & knowledgeable jewelers & goldsmiths are quite willing
to
furnish you with this information and guarantee it.
American Bullion Jewelers
Hallmarks Each Piece of Fine Jewelry with the Purity AND Weight!
All
weights are troy.
There are 31.1 grams in a troy ounce.
·
24K gold is pure gold or .999 fine.
·
22K gold contains 22 parts gold and 2 parts of one or more
additional metals, making it .916
pure gold.
·
18K gold contains 18 parts gold and 6 parts of one or more
additional metals, making it .750 pure gold.
·
14K gold contains 14 parts gold and 10 parts of one or more
additional metals, making it .583 pure
gold.
·
10K gold contains 10 parts gold and 14 parts of one or more
additional metals, making it .417 pure
gold.
You can compute this yourself by dividing the
stated karat by 24 (pure gold).
Example: 14 ÷ 24 =.583 pure gold.
NOTE:
The purity is not always exactly the mathematical value! For example, 22 carat
is mathematically 22/24ths x 100 = 91.666% but the accepted international
standard is .916.
If
you want to compare the actual gold value in the same market, for
different purities and weights of fine jewelry, here is how to do it.
(You should always remember to include in the
selling price, the total cost to you, including insured shipping &
taxes.)
American Bullion Jewelry includes all insured
shipping charges, U.S. Express Mail.
You
want to answer TWO questions for each piece you wish to compare!
1st. .
How much is the gold in the piece actually worth, at the current spot
gold market price (regardless of the selling price)?
Gold Spot X Purity (in decimals) ÷ 31.1
(grams per oz.) X Weight of piece (in
grams) =
“Spot
Gold Value” of the piece.
&
2nd.
.
How much are you actually paying per ounce
for the pure gold in the piece,
compared to the N.Y.
Spot Gold Market?
(This allows you to accurately compare, ounce for ounce, various
weights and purities of jewelry in the same market).
Selling
price ÷ Spot Gold Value (determined above in # 1)
x N.Y. Spot = Your comparative cost per oz.
(of .999 fine gold at the current spot gold market price).
~
PRACTICE
PROBLEMS
(All
practice problems are computed using a hypothetical N.Y. gold spot of $900. per
oz.)
Practice problem : If a piece is 18k Gold and weighs 22 grams
and is priced at $1,100.00 and the NY
Spot gold price is $900.00 per oz.,
1.
How much is the gold in the piece worth, according to the
N.Y. Spot Price?
$900.00 (gold spot) X .750 (18K purity) ÷ 31.1 (grams in an oz.) x 22
(weight of the piece) = Spot Gold Value
($900. x .750 ÷ 31.1 x 22 = $477.49 actual gold value @ N.Y.
spot)
This is the actual current market value in
gold, regardless of the selling price,
at the N. Y. spot price of gold.
2.
How much are you actually paying per oz. for
the pure gold in the piece, compared to spot?
Selling price ÷ spot gold value (as
determined above) x current NY Spot = Gold Price per Oz.
$1,100.00 (price) ÷ $477.49 (spot gold value) x $900.00 (N.Y. spot) =
$2,073.34 per oz. for the pure gold.
~
Getting
the Hang of it? Here’s another;
Practice problem: A 14k Gold piece, weighing 44 grams
and selling for $4,000.00, in the same $900.00 per ounce
gold market.
1.
To find the spot gold value of the piece,
$900. (spot gold) X .583 (14k purity) ÷ 31.1
(grams per oz.) x 44 (weight in grams) =
$742.34 Spot Gold Value
2.
To find how much you are actually paying per
oz. for the pure gold in the piece,
$4,000.00 (selling price) ÷ $742.34
(Spot gold value) x $900.00 (N.Y. Spot) = $4,849.52 (Your cost per oz.
of .999 fine)
~
Practice
problem: A 22 k Gold piece
priced at $48.00 per gram and weighing 29 grams.
(This is a little different, just to keep you
sharp. First you should compute the actual selling price
by multiplying $48.00 (price per gram) x 29 (weight of piece in
grams) = $1,392.00 (selling price).
1.
To find the spot gold value of the piece,
$900.00 (gold spot price) X .916 (22k purity)
÷ 31.1 (grams per oz.) x 29 (weight of piece) = $768.73 (actual spot gold
value)
2.
To find out how much you are actually paying
per oz. for the pure gold in the piece,
$1,392.00 (selling price) ÷ $768.73 (Spot gold
value) x $900.00 (NY Spot) = $1,629.70 (your cost per oz. of fine gold)
~
Now, from a company that
makes it easy for you to compare value.
Practice
problem: A 14k Gold, 1 ounce.
Bullion Bracelet™ which sells at the same price per ounce as spot gold ($900.00).
Because we clearly
price our jewelry only by the ounce, it can be a simpler formula!
1. To
find the spot gold value of the piece,
Because it weighs exactly 1 troy ounce; $900.00
(gold spot) x .583 (14k) = $524.70 (Spot gold value)
(Or
using the longer method)
$900.00 (gold spot) X .583 (14k purity) ÷ 31.1
(grams per ounce.) x 31.1 (weight of piece in grams) = $524.70 (Spot gold
value)
2.
To find out how much you are actually paying
per ounce for the pure gold in the piece,
$900.00 (selling
price) ÷ $524.70 (spot gold value) x $900.00 (N.Y. spot) = $1,543.74 (your cost
per ounce. of fine gold).
~
Practice
problem: An 18k Gold, 2.5
ounce. Bullion Bracelet™ which sells at the same price per ounce as N.Y.
spot gold.
($900.00 X 2.5 = $2,250.00)
1. To
find the spot gold value of the piece,
Because you already know the weight in troy ounces,
(2.5 oz.).
$900.00 (gold spot) X .750 (18k purity) x 2.5
(weight in ounces) = $1,687.50
Or using the longer method
$900. (gold spot) x .750 (18k purity) ÷ 31.1 (grams per oz.) x 77.75
(grams in 2.5 ounce) = $1,687.50 (Spot gold value)
2.
To find out how much you are actually paying
per ounce for the pure gold in the piece,
$2,250.00 (selling price) ÷ $1,687.50 (spot
gold value) x $900.00 (N.Y. spot gold) = $1,200.00 (Your comparative cost per
oz. of fine gold)
Once you have mastered these simple formulas, you will be
prepared to instantly compare actual pure gold values between any purities and
weights of fine gold jewelry in the same market.
Remember, accurate and knowledgeable comparison
shopping, from jewelers who provide you with the tools to compare, saves you money
and gives you greater value!
If the jewelry compares favorably by cost, then factor
in the other important qualities of design, durability, finish, factory vs.
handmade and most importantly, the guarantee.
QUESTIONS ?
TALK TO THE PROFESSIONALS AT BULLION JEWELRY
toll free
1-877-520-5202 Mon-Fri , 9-4 Central Time
Closed All Market Holidays
OR
ORDER ONLINE 24/7 HERE
………….…………………print & carry…………………………………..
