Gold prices are constantly changing, and if you're buying or selling gold, it’s crucial to understand how these prices work. In Goldzenn’s latest YouTube video, Julio dives deep into the factors affecting gold prices, how to calculate the value of your gold, and what to expect when selling or buying from pawn shops, jewelers, or manufacturers. Let’s break it down.
Why Do Gold Prices Change?
Gold prices don’t stay the same for long, and here’s why:
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Supply and Demand
If demand for gold is high and supply is low, prices increase. On the flip side, if there’s too much gold on the market and fewer buyers, prices drop. -
Inflation
As inflation rises, gold prices also tend to go up. Why? Gold acts as a hedge against inflation, meaning it holds its value when paper money doesn’t. -
Interest Rates
Lower interest rates can lead to higher gold prices since it costs less to borrow money to invest in gold. -
Political Events and Crises
Global uncertainty often pushes people to invest in gold, increasing its demand and price.
How to Calculate Gold Value
Gold is measured in troy ounces, and 1 troy ounce equals 31.1 grams. Let’s say the current gold price is $2,000 per ounce. Here’s how to calculate the value of 10k and 14k gold:
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10k Gold (41.7% pure)
$2,000 ÷ 31.1 = $64.30 per gram (pure gold).
Multiply by 41.7%: $64.30 x 0.417 = $26.81 per gram for 10k gold. -
14k Gold (58.3% pure)
$2,000 ÷ 31.1 = $64.30 per gram (pure gold).
Multiply by 58.3%: $64.30 x 0.583 = $37.49 per gram for 14k gold.
Selling Gold? Here's What to Expect
- Jewelers and Refineries: Typically offer around 90% of the market price.
- Pawn Shops: Often offer less, sometimes as low as 50%.
Knowing the value of your gold helps you negotiate better deals.
Manufacturing Costs: What Goes Into the Price?
Gold jewelry prices aren’t just about the gold. Here’s what else you’re paying for:
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Labor Costs
Labor costs vary depending on the jeweler and the type of piece. Machine-made items often have higher labor costs due to the precision and advanced equipment required, while handmade pieces, like Cuban links, generally involve less machinery and therefore lower labor costs. Different jewelers charge different rates, so it’s recommended to call and ask for an estimate. -
Custom Pieces
Custom jewelry involves a more intricate process, including design, casting, and finishing. Since these pieces take more time and effort, jewelers set their own prices based on the complexity of the design and materials used. It’s best to contact the jeweler directly for a detailed quote.
How Gold Prices Have Changed Over Time
Gold prices have fluctuated significantly over the years.
- 2007–2008: Gold was around $600–$700 per ounce.
- 2010: Prices climbed to $1,100+ as markets recovered.
- Pandemic (2020): Prices hit an all-time high of $2,054 per ounce.
- 2025: Gold is trading near $2,680 per ounce, reflecting ongoing economic uncertainty and upcoming elections.
This history shows how external events, like financial crises, can influence gold prices.
What This Means for You
If you’re buying or selling gold, here’s what to keep in mind:
- Gold Prices Are Volatile: They change daily, so timing is important.
- Labor and Manufacturing Costs Matter: Handmade and machine-made pieces have different costs, which affect the final price.
- Custom Jewelry Takes Time: Expect 4–6 weeks for unique, handcrafted pieces.
Stay Informed with Goldzenn
Want to stay updated on gold prices and the best deals? Sign up for Goldzenn’s email list to receive exclusive offers, insights, and updates straight to your inbox. You can also give us a call for any questions or custom piece requests.
Gold is not just a luxury—it’s an investment. By understanding how prices work, you can make smarter decisions and get the most value out of every purchase. For more tips and insights, check out our YouTube channel and stay ahead of the game.
Check out the video on Youtube: Youtube Video Understanding Gold Prices