Calculating value of 22ct Gold chain

[silvernewbie]

Hi

I am looking to buy a 22ct Gold link necklace from the UK and just wanted some advice regarding pricing so i dont get ripped off.  I understand the bullion value is grams * market price per gram but with jewellery there is a further labour cost, what is reasonable?  Also is the price of 22ct worked out same as 9ct, as its heavier?

For example if i buy a 20inch Gold link chain which is 50g, 50g*£38= £1900, would £500 extra be reasonable?  

Looking online for example at the below (not intending to buy from there) it is 32g*£36 = £1152? Sell price 1.9k usd 

 

https://www.rajjewels.com/catalog/product/view/id/15891/s/22-kt-yellow-gold-unisex-square-cable-ball-chain-gc145/

I havent yet been to any jewellers but just wanted to know what level i should be bargaining to.  A friend has recommended some Asian places in London who sell this type of stuff

Thanks
 

[Melon]

You're missing a part of the calculation if you're working out the value of the gold content. Anything less then 24ct is not pure gold. So it would be 32.7 * (£spot / 24) * 22. 

[silvernewbie]

Thanks for the tip!  So are most Gold chains 22ct or can you get 24ct? 

[silverdocket]

 91% 22ct of 50 g is 45.5g  pure gold multiplied by spot price

 And there's your answer.

 That's how much the chain is worth in scrap gold.

 Design and style cost extra..

 That's down to taste 

[silverdocket]

1 minute ago, silvernewbie said:

Thanks for the tip!  So are most Gold chains 22ct or can you get 24ct? 

 Anything is possible but unusual as the metal is too soft for jewellery.

[Stu]

1 minute ago, silverdocket said:

 Anything is possible but unusual as the metal is too soft for jewellery.

A lot of Indian jewlery is 24ct, as I understand it, but will depend on personal preferences. 

[silverdocket]

 Few quick calculations roughly 

[silverdocket]

6 minutes ago, Stu said:

A lot of Indian jewlery is 24ct, as I understand it, but will depend on personal preferences. 

 Would that be more gifted type Jewellery around wedding times?

 Day-to-day stuff just break easily unless it was thick I would imagine.

 Mr T comes to mind Lol 

 I pity the fool 

 

[Stu]

I believe it's us westerners who think pure gold is too soft to wear, but stand be corrected.

[Melon]

21 minutes ago, silvernewbie said:

Thanks for the tip!  So are most Gold chains 22ct or can you get 24ct? 

I'm sure you can, but I wouldn't recommend it. Gold is a soft metal, and if you're regularly wearing pure gold it'll take a beating. I wouldn't go 22ct either - 14ct or 18ct tends to be the norm for jewellery. 

[Xander]

HGM. 22K Pay £31.93 per gram.

[BackyardBullion]

22ct is 91.667% gold

Might not sound much but 0.3 of a gram is worth £10!

[DoubleEagle]

2 hours ago, silvernewbie said:

For example if i buy a 20inch Gold link chain which is 50g, 50g*£38= £1900, would £500 extra be reasonable?  
 

Once you figure out melt value, up to double melt value is a good price, particularly if you are getting good service from the jeweller. Melt value in this case is (Grams of Link Chain / 31.1) X (22 / 24) X spot gold.

Lately I've been getting much better deals by ordering jewellery that is 24k from www.mene.com. I can get 24k at about 1.33 x spot from there. But they have no storefront to fit your jewellery, and thus save much cost in that way.

There is no problem for jewellery to be 22 or 24k. They only have 22k in India, for example. However, it will get routinely dented a little, and so therefore take that into account when choosing designs. Also, for a finger ring the ring will get worn by your finger and perhaps 14k is better for a daily use finger ring. For necklace and bracelet 22k and 24k is fine. But with high gold content it is good to order heavier designs and then they will not break. Wife likes 24k necklace I bought her because it is very comfortable.

[silvernewbie]

Thansk for the suggestions i think 22ct is what i will go for, surprised to hear double the melt is reasonable as wasnt expecting such a markup! 

So from above for 22ct i work out 91% of the grams then * it by £36 (or £31 if going by HGM price). 

[silverdocket]

12 minutes ago, silvernewbie said:

Thansk for the suggestions i think 22ct is what i will go for, surprised to hear double the melt is reasonable as wasnt expecting such a markup! 

So from above for 22ct i work out 91% of the grams then * it by £36 (or £31 if going by HGM price). 

 Don't forget your .6 lol 

91.6

 Makes a big difference on bigger items...

byb was right.

 

 

[Goldenbear]

Just a brief personal experience for anyone thinking of 24k gold jewellery....myself and my partner decided to have 24k gold wedding rings made. We wanted the colour that is unique to pure gold and so after some research decided to go for it.

First we had to find an experienced goldsmith who had experience in 24k gold rings and found a man in Israel who specialised in pure gold jewellery.

They were made by hand and hammerred so had lots of texture in them. This hides marks very well. I think for everyday use smooth and polished would age poorly in 24k gold however.

Interestingly the goldsmith we chose spoke at length with us and explained how an experienced goldsmith could compact the material when hammering it in such a delicate way that it would compact the structure of the gold and thus make it harder wearing and true to his word they turned out robust and strong

I admit beforehand I was worried based on what I knew about pure gold but I was very happy with the end result as it captures the colour and beauty of 24k gold as we hoped. It will mark like all jewellery but the finish helps ensure its not obvious. If you are a lover of pure gold like me then it sure is nice to be able to look at and wear each day! The way it changes in different lights and captures the sun at different times of the day can be very beautiful and its easy to see why it has been so admired and loved as a material for over 5000 years.

 

[Melon]

3 hours ago, silvernewbie said:

Thansk for the suggestions i think 22ct is what i will go for, surprised to hear double the melt is reasonable as wasnt expecting such a markup! 

So from above for 22ct i work out 91% of the grams then * it by £36 (or £31 if going by HGM price). 

No, you can't use the HGM price for working out the cost to you. Use spot price. 

 

[Mkman123]

OP go to thailand, you can get 23kt gold chains/bars, etc very close to spot price. I'm currently in thailand right now, their prices for gold is very competitive!

[silvernewbie]

So i went to look at a couple didnt pull the trigger yet but:

22ct, 60g asking 3.3k

22ct 48g asking 2.5k (pic below) 

both prices open to negotiation, and i forgot VAT is applicable for jewellery

 

 

[silverdocket]

8 hours ago, silvernewbie said:

So i went to look at a couple didnt pull the trigger yet but:

22ct, 60g asking 3.3k

22ct 48g asking 2.5k (pic below) 

both prices open to negotiation, and i forgot VAT is applicable for jewellery

 

 

 60 g/22ct is 54.96 pure gold... multiplied by spot 36.73  chain is £2018 as scrap gold.

 Give or take 

 If you go to a jewellers you're paying top dollar.

 

 Try looking at some jewellery actions....

 Usually sell for around spot price plus fees of 15%  +3.5% tax in Ireland 

[silverdocket]

 Just to give you an example 

 I attended an action  Within the last month chasing a 22 ct medallion at 63g

  More gold weight than your above chain.

 It's sold for €2080   +18.5 fees @€384

€2464 or around £2125

 So if you're buying a chain for gold   Value  I think you be very foolish.

 Each to their own...

 I hope this helps.

[DarkChameleon]

On 07/11/2019 at 17:15, silverdocket said:

 Anything is possible but unusual as the metal is too soft for jewellery.

I have 22k ring...but it is recommended to stick to 18k or even 14k for something that might have to take stress at some point although as they say the weakest link which on jewelry tends to be the clasp, id pay extra on a tougher clasp then save a few bob and have it snap on me after a couple of years.

[DarkChameleon]

On 08/11/2019 at 02:10, silvernewbie said:

Thansk for the suggestions i think 22ct is what i will go for, surprised to hear double the melt is reasonable as wasnt expecting such a markup! 

So from above for 22ct i work out 91% of the grams then * it by £36 (or £31 if going by HGM price). 

I sell my pure gold at 50% over melt, its preowned but I only sell immaculate examples..retail new is about 3 times melt. 

[silvernewbie]

On 08/11/2019 at 13:39, Mkman123 said:

OP go to thailand, you can get 23kt gold chains/bars, etc very close to spot price. I'm currently in thailand right now, their prices for gold is very competitive!

Thanks that would have been ideal as i travel in that area 1/2x a year and i have heard about singapore/hk/bangkok/india being cheap but unfortunately wont be going Asia in next 12 months.  The only reason for this purchase is due to getting robbed abroad and the chain had sentimental value so am looking for something v similar

so i went to 20 jewellers this weekend, no one had the style i wanted but one place said they can make it in a few weeks so i gave the order, 70g 22ct.  I know i overpaid so i wont say how much lol, but all of them were giving similar prices, lets say over the 50% melt someone mentioned.  

[Mkman123]

@silvernewbie save up some cash so when your in thailand again you can get lots of thai gold for really good prices. Ask for a certificate as well which most stores will give you.