Understanding Gold Prices: A Guide from GOLDZENN

Gold is valuable, and its price changes all the time. If you're thinking about buying or selling gold jewelry, it's important to understand how these prices work. In this guide, we'll break down everything you need to know, just like Julio from GOLDZENN does in our YouTube videos. We'll explain why gold prices change, how to find out what your gold is worth, and what to expect when buying or selling.

Why Do Gold Prices Change? It's Not Magic!

Gold prices change constantly. They move up and down based on several factors:

• Supply and Demand: This is the most basic rule of economics.
• High Demand, Low Supply: If lots of people want to buy gold, but there isn't much available, the price goes up. Think of it like a popular toy at Christmas – if everyone wants it, stores can charge more.
• Low Demand, High Supply: If there's a lot of gold available, but not many people want to buy it, the price goes down.
• Inflation: Inflation means that your money buys less than it used to. When inflation is high, people often buy gold. People think gold is safe because it keeps its value, even if paper money loses value.
• This increased demand for gold during inflation usually makes the price go up.
• Interest Rates: Interest rates are what banks charge to lend money.
• Low Interest Rates: When interest rates are low, it's cheaper to borrow money. People might borrow money to invest in gold, which can push the price of gold up.
• High Interest Rates: When interest rates are high, borrowing money is expensive. People might be less likely to invest in gold, which can cause the price to stay the same or go down.
• Political Events and Crises: The world can be Uncertain.
• When there's political uncertainty (like elections or international conflicts), people often look for safe investments.
• People often buy gold when they're worried about the economy. This increased demand can make the price of gold go up.

How to Calculate the Value of Your Gold: A Simple Formula

Gold is measured in "troy ounces." One troy ounce is equal to 31.1 grams. This is different from the regular ounces used to measure things like food.

Let's say the current price of pure gold is $2,000 per troy ounce. Here's how to calculate the value of different types of gold:

• Pure Gold (24k):
• $2,000 (price per ounce) / 31.1 (grams per ounce) = $64.30 per gram.
• Pure gold is too soft for most jewelry
• 10k Gold (41.7% pure gold):
• First, find the price of pure gold per gram: $2,000 / 31.1 = $64.30
• Then, multiply by the purity percentage: $64.30 x 0.417 = $26.81 per gram.
• This means that one gram of 10k gold is worth $26.81 based on the gold content alone.
• 14k Gold (58.3% pure gold):
• First, find the price of pure gold per gram: $2,000 / 31.1 = $64.30
• Then, multiply by the purity percentage: $64.30 x 0.583 = $37.49 per gram.
• This means that one gram of 14k gold is worth $37.49 based on the gold content alone.
• 18k Gold (75% pure gold):
• First, find the price of pure gold per gram: $2,000/31.1 = $64.30
• Then, multiply by the purity percentage: $64.30 x 0.75 = $48.23 per gram.
• This means that one gram of 18k gold is worth $48.23 based on the gold content alone.

Remember, these calculations only show the value of the gold in the jewelry. The final price will also include the cost of making the jewelry (labor) and any other materials (like diamonds).

Selling Your Gold: What to Expect

If you're selling gold, you won't usually get the full "spot price" (the current market price of pure gold). Here's why:

• Jewelers and Refineries: These businesses need to make a profit. They also have costs like refining the gold (melting it down and purifying it). They typically offer around 90% of the market price. This is a pretty fair deal.
• Pawn Shops: Pawn shops often offer less than jewelers or refineries. They might offer as low as 50% of the market price. This is because they're taking a bigger risk and need to make a larger profit.

Knowing the value of your gold (using the calculations above) helps you negotiate a fair price. Don't be afraid to shop around and get quotes from different places.

The Cost of Making Gold Jewelry: It's More Than Just Gold

When you buy gold jewelry, you're not just paying for the gold itself. You're also paying for:

• Labor Costs: This is the cost of the jeweler's time and skill.
• Machine-Made Jewelry: Surprisingly, machine-made jewelry often has higher labor costs. This is because it requires expensive, precise machinery and skilled operators.
• Handmade Jewelry: Handmade jewelry, like a custom Cuban link chain, might have lower labor costs per hour, but it can take longer to make.
• Different jewelers charge different rates, so it's a good idea to call and ask for an estimate.
• Custom Pieces: If you're having a piece of jewelry custom-made, it will cost more.
• Custom jewelry involves designing the piece, creating a mold (casting), setting any stones, and finishing the piece.
• Because it takes skill and time, jewelers charge based on the design and materials.
• It's always best to contact the jeweler directly for a quote on a custom piece.
• Other materials. Diamonds and other materials add to the price.

A Look at Gold Prices Through History

Gold prices have changed a lot over the years:

• 2007-2008: Gold was around 
• 700 per ounce. This was during a financial crisis.
• 2010: Prices went up to over $1,100 per ounce as the economy started to recover.
• 2020 (Pandemic): Gold prices hit a record high of over $2,000 per ounce. People were worried about the economy and invested in gold.
• 2024(Present Day): Gold prices can fluctuate based on time of year.

This shows how events like financial crises and global uncertainty can affect the price of gold.

What Does This Mean for You? Key Takeaways

• Gold prices change daily: Be aware of the current market price.
• Know the purity of your gold: 10k, 14k, and 18k have different amounts of pure gold.
• Understand the costs involved: You're paying for gold, labor, and other materials.
• Shop around: Get quotes from different jewelers or buyers.
• Custom pieces take time: Expect to wait 4-6 weeks for a custom-made piece.

Stay Informed with GOLDZENN

Want to keep up with gold prices and get the best deals?

• Sign up for our email list: We'll send you updates, special offers, and helpful information.
• Follow us on social media: Stay connected and see our latest designs.
• Give us a call: We're happy to answer your questions and help you with custom orders.

At GOLDZENN, we believe in transparency and quality. We want you to understand gold so you can buy or sell it wisely. We're here to help you every step of the way.

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