In the previous few weeks we talked about Diamonds and how they are priced. In this blog we talk about the jewelry itsef, the metal used, its rating etc. For simplicity, we will talk about Gold based jewelry.
Last week we discussed the basics of Gold Jewelry and how its purity is defined by Karat ratings. In this blog, we bring it all in together and also discuss how a jewelry is priced. What are the ingredients that make up a jewelry?
- The Design itself – Is it just Diamonds and Jewelry or are there other stones thrown in to enhance it?
- The precious and semi-precious stones used in the design
- Gold used whether in Open setting or Closed setting
- The cost of labor used to put it all together.
Here comes the good part – the amount of margins that go into the above four line items.
Costing of a Jewelry
|Design||This is a bit open ended as it depends upon how much effort was expended. It is small if an existing design is being enhanced but can be significant if it is from scratch.||5% to 50%|
|Precious stones||As mentioned in our blog about Diamond pricing, the pricing is subjective and can have significant variation in pricing.||40%|
|Semi-Precious stones||These include Pearls, Rubies, Sapphires, Tanzanite, Emeralds.||10% to 30%|
|Gold||The price is published every day and it typically follows the market value.||5% to 10%||Labor||Much of the jewelry today is made using special machines. Hand made designs cost significantly higher||5% to 20%|
The value of the jewelry changes with time, depending on how the components above make up the price. Gold retains its value and can often be exchanged at the prevailing rates, factoring the Karat value. Happy buying!
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