Looking for a beautiful ring to propose with or that stunning anniversary gift?
Now might just be the time to start shopping around as the gold price per gram has decreased since the beginning of the year.
Except, why does the gold price per gram even matter when it comes to buying engagement rings?
To simplify, the gold market tracks and records the value of gold in troy ounces and grams.
This means that when manufacturers buy gold to make jewelry, they'll know that buying gold on one day may cost $1,313 per troy ounce or $42 per gram.
Here's why the gold price per gram matters to you.
Price Drops
In the past ten years, the highest the value of gold has been was back in 2011.
In 2011, the gold price per gram was $60.76 per gram or $1,889.70 per ounce.
Since then, the price has dropped and has remained below $45 per gram.
This price drop is incredibly important for the main reason that it means jewelry from 2011 to 2013 was much more expensive than jewelry you can buy now.
But why should you consider buying jewelry now, in 2018?
The answer - because of those price drops.
The manufacturing process for jewelry can take several weeks depending on the piece. There's also shipping time to consider if you're buying from physical retail or online stores.
In other words, those gold rings or necklaces you want to buy were manufactured maybe two months or more ago.
And so far, the trend for the gold market is to finish at its lowest values at the end of the year.
With a month like December that had a low price of $39.82 per gram, gold bought by manufacturers during that time and crafted into jewelry will be cheaper now.
However, there are some things you'll want to take know before diving in.
Mark-Ups
All of this information about the gold price per gram or price per ounce only accounts for so much of the cost of jewelry.
Retailers, no matter who they are, want to make a profit off of their products. To make that profit, they use mark-ups.
Mark-ups mean that the retailer is raising the cost of jewelry by however much they feel like, and that could be by 20% or by 100%.
If you're good at math, you can calculate the actual worth of the piece of jewelry you want to buy; although, this method is easiest when the piece of jewelry is 100% gold.
This can also tell you how high specific sellers are marking up the prices of their jewelry.
If the value of the piece of jewelry from a particular seller you're eyeing isn't unreasonable for you, then go ahead and snatch it up.
Look Around
With your newfound insider information, you can go ahead and go out shopping for that beautiful gold piece.
Of course, if you're still not sure what to buy for your loved ones then research your options, there are tons of them.
If you have any more questions or if you want to appraise your jewelry to know its worth then contact us today!