How To Calculate Pure Gold Content And Markup Of Gold Jewelry

To calculate the gold value of a piece of gold jewelry, you need:

SWKP

1. The selling price of the piece of jewelry

2. Weight in grams of the piece of jewelry

3. Karatage of the jewelry (10k, 14k, 18k) Reference: http://www.goldrefiners.com/gold-alloys

4. Price of gold per troy ounce

   Use JM BULLION: https://www.jmbullion.com/charts/gold-price/

Let’s take, for example, an 18K Cuban Chain from David Yurman

https://www.davidyurman.com/products/mens/mens-necklaces-and-chains/curb-chain-necklace-in-18k-yellow-gold-8mm-n25444m88.pdp.html

S $28,000

W 125.52 grams

K 18k (75%)

P $1,800 (for example)

*Note

The Karatage (10k,14k,18k) allows you to know the percentage of gold in a piece of alloyed jewelry. 10k is 41.6% gold 14k is 58.3% gold 18k is 75% gold. Once you know the weight of the item you can extract the real amount of gold by multiplying by its purity percentage.

First, take the weight of the item and multiply it by its gold content percentage to get the total gold content of the item.

(125.52) x (.75) = 94.14 grams of pure gold in the chain.  The other 31.38 is made up of non-precious metals like nickel, silver, copper

Now take the current price of gold divided by 31.1 grams to get the current price of gold by the gram.

$1,800 / 31.1g (Troy Ounce) = $57.87 per gram of gold.    This is the current market price for a gram of gold.

Next, take the item’s total gold content by grams (94.14) multiplied by the price per gram ($57.87)

 94.14 x $57.87 = $5,447.   This is the true dollar value of the gold in the piece of jewelry.

Finally, to get the markup percentage charged on gold jewelry, follow this formula:

The sale price of jewelry — Value of the gold in jewelry / Value of the gold in jewelry x 100

The sale price of jewelry ($28,000) — Value of the gold in jewelry ($5447) = $22,553

Take that figure and divide it by the value of the gold in the chain $22,553 / $5,447 = 4.14 and multiply by 100

4.14 x 100 = 414% markup

DAVID YURMAN CHARGES A 414% MARKUP ON THE CUBAN CHAIN OVER ITS GOLD VALUE WITH THE PRICE OF GOLD AT $1,800.

WE INVITE EVERYONE TO GO TO DAVID YURMAN, CHECK OUT THE ITEM. WEIGH IT AND ASK THEM ABOUT THEIR MARKUP AND SHARE WITH US THEIR RESPONSE.