How Gold Chain Prices are Calculated

Factors that effect the price of gold jewelry: When purchasing gold jewelry, one secret that jewelry stores don't want you to know is that the weight of the gold jewelry is what determines their cost. This rule applies to all precious metal jewelry, including silver and platinum. So if their cost is based on the weight, why isn't yours? Why don't they clearly disclose the weight of the jewelry they're selling? You wouldn't buy a gold bar or coin without knowing it's weight, so why would you buy gold jewelry that way?

Other factors that determine the price of gold jewelry are:

• Whether or not the jewelry is imported or domestic. Our Italian and German gold chains are imported and subject to duties and taxes, so those costs we have to pay do have to get passed on to the consumer as well.
• If any special processes were used to create the gold jewelry. For example, big chunky gold links cost less labor to make per gram, then very small intricate design work, especially if made by hand. Hollow gold jewelry also costs more as well because of the extra processes used to make the jewelry.
• If the jewelry is handmade or one of a kind.

In the US, jewelry is weighed in units of grams. Some jewelry stores will disclose the actual weight of each piece, while most do not. Why do most jewelry stores fail to let you know the actual weight is? Because the easiest way to make gold jewelry cheaper is to use less gold and make it lighter. The main problem with using less gold is that lighter pieces of jewelry such as gold chains can not hold a higher tensile load when pulled. Some jewelry stores that do not display the weight say that 'fine jewelry' is not sold by the weight. Jewelry stores are not supermarkets, right?

The reality is that all retailers and wholesalers purchase their jewelry from manufacturers and wholesalers who sell by weight, not piece. Why? Because the weight of the precious metals in the jewelry make up the majority of its cost.

So know you're wondering. . . How can this help me make a wiser investment in gold jewelry? Simple. When comparing prices, ask for the gram weigh and based on the price, calculate a price per gram. For example, if the item costs $500 and weighs 10 grams, you know you are paying $50/gram. If one chain is much higher quality then another, then a small allowance can be justified for a higher price, this at the discretion of the consumer.

The good thing about shopping at Luxe Chains is that all our chains are of the highest quality chains sourced from all over the world, and our prices are very competive. Make the smart choice and shop Luxe Chains.