What is included in the price of a new piece of gold jewelry?

When you buy a newly made gold piece of jewelry in a store, you’re not just paying for the gold itself. The price is influenced by several other costs that are added along the way from manufacturing to the store shelf.

This may include, among other things:

  • Design and Branding – costs associated with design, marketing, and the brand behind the piece of jewelry.
  • Manufacturing – labor, machinery, production, and any imports.
  • Store expenses—rent, staff, inventory, and other overhead costs.
  • Sales Tax – 25 percent sales tax on the selling price.

As a result, the price in stores is often significantly higher than the value of the gold actually contained in the piece of jewelry.

That difference becomes particularly clear when the piece of jewelry is resold. At that point, it is primarily the weight, karat content, and the current price of gold that determine its value—not what the piece originally cost in the store.

Gold never gets old

One of the reasons secondhand gold jewelry is appealing is that the gold itself does not deteriorate in the same way as many other materials.

A piece of 18-karat gold jewelry contains 75% pure gold, regardless of whether it was made a few months ago or several decades ago. It may develop scratches and signs of wear, but the material itself retains its properties.

Classic models work just as well when purchased pre-owned

Some gold jewelry is hardly affected by trends. Styles such as the Bismarck, X-link, and curb chain have been around for a long time and continue to be popular.

For this type of jewelry, pre-owned pieces can be particularly appealing. You get the same type of gold chain and the same amount of gold, but you avoid a large portion of the costs associated with new production and traditional retail sales.

Bismarck

Bismarck is a classic model that many people recognize. Its dense, braided design gives the bracelet both heft and a distinctive look.

Since Bismarck often contains a relatively high amount of gold, the price difference between a newly manufactured link and a used one can be significant.

X-link

The X-link has a more decorative look and is commonly found in thicker bracelets in particular.

A well-preserved X-link that has been cleaned and polished can therefore be a good option for anyone who wants a substantial piece of gold jewelry without buying something newly made.

Armor

The curb chain is one of the most classic chain styles and is used in both necklaces and bracelets.

This design has been around for a long time and is manufactured by many different producers. For those who are primarily looking for a genuine gold piece of jewelry, it may therefore be more important to consider the weight, karat, and condition than the name of the store listed on the receipt.

A More Circular Way to Buy Gold

Choosing secondhand gold isn’t just about price.

Gold that has already been mined and made into jewelry can be reused over and over again. By finding new owners for existing jewelry, we make use of materials that are already in circulation.

At the same time, the purchase price is often closer to the actual value of the gold than that of a comparable piece of newly manufactured jewelry.

That doesn’t mean that a gold piece of jewelry is a risk-free investment—the price of gold fluctuates over time, and other factors also affect its resale value. But the less you pay in retail and manufacturing markups up front, the larger a portion of the purchase price is typically made up of the gold itself. Check out Smyckesguld’s selection of pre-owned gold jewelry here!