Gold Chain prices are based on 3 main factors listed below:
Weight of the gold chain in grams
Price per gram
The fluctuating price of raw gold
Other factors that influence the price:
The labor intensity of your particular gold chain
Style and Metal Type (Yellow Gold, Two-Tone, and White Gold)
Each item of jewelry, including gold chains, weighs a certain amount. Gram weights are the standard unit of measurement for gold jewelry. Jewelers use finely tuned scales to weigh items of jewelry in order to determine their gold value.
Always ask for the gram weight of the chain you are purchasing. If you have doubts ask to see the chain weighed in front of you. This will help you determine the value and price of a gold chain. Don't accept a weight range with a ewide difference such as 10-15 grams.
Although gram weights are always approximate for gold jewelry, and gold chains in particular, the difference should be no more than 2%-3% on average. With the weight of the chain known, you have taken the first step in determining the value of the chain.
Price Per Gram
To find the price per gram you simply take the price of the chain and divide that by the gram weight.
Example 1: If your chain is priced at $349.00 and the gram weight is 21.5 grams. Divide $349 by 21.5 and you will get $16.23. This means that you are paying $16.23 for every 1 gram of gold in your particular chain.
Example 2: If a gold chain weighs 11.0 grams and is priced at $199.00. $199 / 11.0 = $18.10. This means that you are paying $18.10 per gram for your gold chain. This chain would not be as competitively priced as one that is selling for $16.23 in Example 1 above.
You now will have a comparison basis for deciding to purchase your gold chain from one jewelry store over another in so far as price is concerned.
Labour Costs & Type of Jewelry
The price per gram will vary based on several factors, including the amount of work reuired to make the particular chain, the price of raw gold (which as a commodity will vary daily), and the amount that your particular jeweler has decided to mark up your gold chain.
Metal types and colors will cause a change in the price per gram of your chain. For example, white gold tends to be more expensive than yellow gold, as does two-tone gold. The reasons for this are mainly because of the added time and labor that a gold chain manufacturer needs to produce white gold vs. yellow gold. Other reasons include such processes as rhodium plating for white gold and other manufacturer processes that increase the cost of production.
Whether the chain is hand-made vs. machine-made affects the price. A standard Figaro gold link chain is not as expensive as a hand-made chain. Hand-made chains are, of course, higher quality —but that does not mean that machine-made chains are of poor quality.
Price of Gold
Gold is a precious metal and a traded commodity and is subject to daily price fluctuations. As gold increases in value, so will the "price per gram" of your gold chain or other jewelry. In 2007, typical gold chain prices are approx. $20 per gram, depending on the shifting price of gold. We have observed many other jewelry stores offering gold chains for between $25 - $30 per gram (between 35% to 40% higher than us for the same chain).
Be sure to compare prices from different jewelers when shopping for a chain. By doing your homework as outlined above you have the tools to compare the gram and the price per gram of your gold chain.
Now you can "comparison shop" and be confident that you are getting the best deal!