The manner in which Jewelers Determine their per Gram Prices and Seasonal Factors in Pricing 18K Gold
Following the 18 karat gold price per gram may seem to be like reading tea leaves which is all over the place, untrustworthy and yet familiar and somehow addictive. Get it at the opportune time and you are a Wall Street genius; get it off by a week, and you may suspect that your jeweler is crooking your calculator. And what is the real truth behind these sparkling counters? Why is the cost apparently going up and down even before a holiday? To those who wonder what the actual movers (or those who are simply worried about obtaining the finest deal) are, take a seat. So, let us dissect the mechanism, the price tags and the seasonal peculiarity, which make gold watchers awaiting on their toes.
Jewelers Per Gram Rates Calculation How Jewelers calculate Per Gram rates
Enter a jewelry store and you might hear a sales associate recite at the drop of a hat today per gram price, having a glance of the chart. However, this figure is not pulled out of the air. The starting point is the international rate of gold. It flip-flops by the hour following the hectic commodities markets of London, New York and the other financial capitals. Jewelers monitor such rates closely they are ever vigilant over them, many of them are more vigilant over such rates then people are over their fantasy football rosters.
Markup Equation
The thing is you are never going to get gold at spot-rate. None of the jewellers is a charity. The store will, instead, append some additional expenses to such base price. These are the factors that tend to add to the cost:
Manufacturing Costs: It is not as easy to create a fine chain as it is. All the labor is built in, design complexities and loss write offs.
Duties and Tariffs: Platinum does not tee-hee across the borders. Fees and taxes are charged.
The cost of lights, rent, advertisement, staff and the whole lot have their share.
Profit Margin: Yes. Companies have to stay in business.
We can give some figures to it. Let global prices indicate that 18K gold is 48 dollars per gram. Once the extras are added to the jewelry store, you will find that average jewelry store quotes between 52 and 58 dollars per gram depending on the factors mentioned above. Other designer stores or small ateliers can be more expensive courtesy of reputation or exclusivity.
Why 18K?
The 18K gold is commonly selected by people as it is moderate. The pure gold (24 k) is malleable. The use of alloys contributes to the durability of 18K which is perfect to be worn on a daily basis by jewelry users. It contains about 75 percent gold and hence the price you will fetch per gram is congruent yet not synonymous with pure gold at the international stage.
Seasonal Factors on Pricing of 18K Gold
Season of the year can give the market gold prices a riding rollercoaster. It is more than theory: patterns in demand, tradition and some sprinkling of speculation all drive it.
Holiday Spikes
Face it, not many are splurging to buy fine jewelry on a quiescent Tuesday in March. The main period of gold sales is at the traditional marriage seasons, religious holidays and at the end year holidays. In India Diwali triggers a gold run, Chinese New Year runs on gold and Christmas also runs on gold. When everyone rushes to buy in the shops, it increases the demand. Retailers can raise the prices even before the events.
The Wedding Effect
The wedding season is a do or die to the gold sellers in some countries. In India, in fact, close to 50 percent of the amount of gold consumed every year is linked to marriages. One of their sayings is, “That no bride can be complete without gold.” Such cultural practices drive the prices to go in the North in terms of jewelry such as the ornamental jewelry of 18K.
Supply changes
Seasons do not leave gold mines, refineries and transportation. Supply can be impeded by political disturbance, industrial strike or even the weather hitch. Jewelers fearing delayed delivery can increase their cost per gram to cover the increased cost of resupply or prevent becoming out of stock at prime time.
International incidents and Market Fear
The world periodically plunges into uncertainty there is a movement in the stock market, geopolitical drama or currency drops. There is scramble among investors to join what is considered safe havens such as gold. When it occurs even the local jewelers feel the earthquake. Those worldwide jitters are reflected in their price per gram, as they creep up.
The small print
Pricing of 18K gold varies even in the same city or street. There are ways that pricing can turn on:
Size and sophistication of stores. Larger stores are able to do cost cutting in some cases.
Brand prestige – Names are important, not only the gold.
Purchasing sizes. Is purchasing in large quantities? You will be able to negotiate lower rate.
Local patterns- In a number of nations, the distortion of prices by local levies and tariffs occurs.
Details of design- Phony filigree will tend to be more expensive.
There are also those that purchasing patterns of jewelers are taken into consideration. In case gold had been purchased during the international price run, then this increased price could remain days, even though, today, price has fallen in the market.
Smart Gold Buying tips
It is not despair to compare. Go in and out of some shops; find out what they charge that gram.
Monitor the changes that occur daily. Check world gold prices trackers before you go shopping.
Enquire about independent charging. Otherwise, it might appear rather expensive per gram but in fact, luxury crafting costs are included.
Have an eye to the calendar. Want to have gold jewelry as a present? It is best to purchase near the end of wedding season or near Christmas time.
