It is sometimes quite confusing as to how the pricing of Gold jewelry is done. Yes, this may otherwise not concern you. But if such a situation may arise, there are some intricate information that you must keep a note on. For a long time we have used Gold in various ways and the metal has proved its worth as one of the many very valuable metals out there. It is now time, that we delve a bit deeper than the superficial uses of the metal and take a look at how exactly the metal reaches its worth, technically.

What affects the gold rate?

Questions may often have risen in your minds as to how does the price of gold vary from time to time. Well, it depends on various factors such as its supply and availability in the market, just like various other goods. Let’s take a look at the factors vividly, after all, these are what again in turn would affect the price of your gold jewelry. 

  1. Supply:

The price of anything depends on the availability of the product. Gold is a rare metal and hence requires quite a bit of time to be found in its true form. Its supply, hence is subject to various factors. If the supply of it is proper enough, the prices are calculated insane enough number. However, if there is not enough supply, the rat race begins and the one who pays the most gets to win the race.

  1. Import rates:

If a country is not to have its Gold reserves, or maybe have a few of them, the place will have to import the Gold from elsewhere. This charge will also be added with the original price of the Gold material that you would be buying.

  1. International relations:

This is another major point to consider. Relations between various countries affect the price of various things in many ways. If say, the country with enough amount of Gold to be supplied to other places even after being used by themselves, enter into a feud with another country, they would automatically raise the price of Gold which would in turn taken from the people who wish to purchase it.

How is the price calculated?

Here one must be made clear that the words carat and karat are entirely different. While carat is the measuring unit for a diamond, karats are for Gold. We have a simple explanation to describe to you the method by which the price of Gold is calculated in the market.

The price of the jewelry is calculated by multiplying the current price of gold with the weight of the metal contained in it and then added with the making charges of the jewelry. 22k gold price is, of course, the highest due to the extreme purity of the metal found in it.

24k is the purest form of gold found. But 24k gold price is not something that will concern us in terms of jewelry as that pure quality of the metal is too soft for making jewelry out of them.