The Value of Gold
Gold is one of the world’s most sought-after commodities. It has been used as a a form of a monetary instrument for thousands of years. Gold is often seen as a symbol of wealth, strength and immortality, meaning the metal has been highly prized and collected for many different reasons. Those reasons are responsible for the value of gold and not limited to the use of gold for jewelry or investment purposes.
The current market price of gold is determined by supply and demand on the global commodity market. In accordance with market pricing fluctuations, the value of gold was ranging between $1,500 to $2,074.88 per troy ounce in the last couple of years. Right now, one ounce (= 31.1 grams) of fine gold is valued at $2030.26. Gold is an extremely liquid commodity and its price is closely watched by investors and collectors alike. If someone plans to sell gold or to buy gold, knowing the current value is critical.
Gold & Jewelry – An Unbreakable Relationship
Gold has a number of properties that make it a really good choice for jewelry making. Gold is an extremely durable and long-lasting metal. It is pretty resistant to tangling, breaking, and damage from everyday wear and tear. And even if something goes wrong, scratches and small damages can be easily removed by a goldsmith. Additionally, it’s naturally lustrous, so it shines brightly even without special polishing or buffing.
But the biggest property that makes gold so great for jewelry making is its high malleability. Gold’s soft properties allow it to be easily shaped into intricate designs and decorations. Jewelers can create stunningly intricate and complex designs. Gold can also be combined with other metals to form alloys that are even more malleable, such as white gold, yellow gold or even green gold.
Simply, gold is ideal for jewelry making and the demand of jewelry making companies from all over the world are having a significant impact on the current gold price and the value of gold.
The Value Of Gold Merchandise
The most common merchandise made of gold are jewelry, coins, bars, dentures, watches, and electronic components. The most recognized items are jewelry and coins and responsible for the the metal’s immense awareness under both, retail customers and professionals. Almost every American consumer owned or currently owns a piece of jewelry. While wedding bands and engagement rings are very common, watches and dental crowns are also from importance. The value of gold is directly associated with jewelry and coins as their price is mostly based on the purity and the weight of the merchandise.
Did you know…
Did you know that some gold mines produce as little as 5 grams of gold per ton of pay dirt? This number is giving you a good idea why gold is so valuable and why its value increased significantly over the last 25 years.
How the value of gold is calculated
In order to calculate the value of gold, the current gold price, the purity, and the weight of the item will be needed.
The Current Gold Price: $2030.26/ ounce or $65.28/ gram or $101.19/ dwt
The Purity: In the US, the purity is stated in karat (short either “k” or “kt”), 10 karat gold equals 41.6% pure gold, 14 karat gold equals 58.3% pure gold, and 18k gold equals 75.0% pure gold.
The Weight: You need to buy a digital scale for accurately weighing your gold. Accuracy is crucial as a minor deviation will result in a very inaccurate value determination.
The Value of Gold in Jewelry
A professional appraiser will assess the value of gold in jewelry based on an intricate mixture of characteristics laid out below. First and foremost, an appraiser must assess the purity of the gold being appraised. By definition, pure gold is also called 24 karat and has the highest value of all gold purities. As the purity of gold drops, so does its value.
Typically, karats are written and indicated in fractional terms, such as 14 karats or 58.3% pure gold. Determining the karat of gold is a process that usually requires sophisticated instruments such as an x-ray machine. Once the karat is determined, the appraiser can lookup the current market value of gold per ounce and per karat.
Secondly, an appraiser must assess the craftsmanship put into the jewelry. Is the piece intricate, detailed, crafted, and meticulously formed in some way or another? The higher quality the craftsmanship, the more valuable the jewelry will be. Jewelry that is considered rare or works of art, will also be more valuable and appraised at a higher value. In some cases, the previous owner of the jewelry may affect its value too. If a piece has a historical importance or was previously owned by a person of interest, for example, it may be worth more than the same piece of jewelry without provenience.
A jewelry appraisal may be a sophisticated thing, especially if many different gemstones in many different sizes and color grades are present.
The Value Of Gold – An Overview
In the United States, jewelry made of 10 karat gold, 14 karat gold, and 18 karat gold are very common. Coins are usually made of 21 karat gold, 22, karat gold or 24 karat gold. Investment grade bars and ingots are always made of 24 karat gold (999.9% pure or 999.5% pure).
The value of coins may be calculated differently than the value of bars or jewelry.
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