A benchmark in the gold market, 18-carat refers to a specific gold content in an alloy. Carat weight is essential for estimating gold, whether for jewelry, objects, or scrap gold. Specialists in gold buying in Lyon, Gemme Jewelers invite you to review the main principles of gold pricing, allowing you to calculate the value of 18-karat gold items, as well as the factors that can influence it.
18 Karat, the benchmark in the gold world
An international unit of measurement for gold, the carat indicates the proportion of pure gold in the alloy of a piece of jewelry, a coin, or another piece of goldwork.
24-karat gold represents 999 thousandths of pure gold: since the precious metal is very soft, this form is rarely used in jewelry and is more suited to presentation as an ingot. 18-karat gold, with 752 thousandths of gold, represents the best compromise between preciousness and softness. 18-karat alloys are therefore the most precious in jewelry. This specific proportion also allows the creation of white or rose gold jewelry.
Traditionally, 18-karat gold jewelry is recognizable by its eagle's head hallmark. However, jewelry without a hallmark can also contain 750 thousandths of gold: the hallmark may not have been affixed due to the fineness of the jewelry or its design period. Hallmarks can be erased on antique and well-worn jewelry, especially rings, as the mark is placed on the inside of the band.
How do I calculate the price per gram of 18-karat gold?
The price of 18-karat gold is calculated based on the price of pure gold, which fluctuates slightly daily. It is therefore essential to monitor the gold price to determine the value of an 18-karat gold item or piece of jewelry. This is set by the London Stock Exchange, based on the balance between supply and demand.
The gold price indicates the value of pure gold, also known as fine gold. To estimate 18-karat gold, one must therefore take into account the proportion of gold present in the alloy, i.e., 750 thousandths or 75%.
The professional price per gram of 18-karat gold is therefore the price per gram of pure gold multiplied by 0.75.
The Main Factors Influencing the Price of Gold
The price of gold can be influenced upwards or downwards by several factors. Rarely subject to sudden fluctuations, it nevertheless fluctuates daily. A sustained upward trend can lead to historically high rates. This is currently the case!
• Supply and Demand
An imbalance between supply and demand can occur when industry and central banks draw on gold reserves while, on the contrary, gold mining encounters difficulties. This scenario, marked by demand exceeding supply, leads to a rise in the price of gold.
• Interest Rates
When interest rates rise, the price of gold tends to fall, and vice versa. It is wise to invest when the yield difference between financial assets and gold is narrowing.
• Changes in gold investments
Several economic factors influence the price of strong currencies, such as the dollar, the dinar, and the Swiss franc, and therefore also indirectly affect the price of gold. When the dollar rises, for example, the price of gold, on the contrary, falls.
• Geopolitical factors
As a safe haven, gold is sensitive to geopolitical conditions. Its price can be influenced by international conflicts, economic crises, and diplomatic tensions.
Method for calculating gold per gram and per kilo
When the price of gold is given per kilo, simply divide the price by 1000 to obtain the value per gram. The result can then be adjusted based on the carat weight. You may also be able to calculate the price per kilo or gram of gold using the price per ounce of gold. This ancient measurement, traditionally used in Anglo-Saxon countries, remains an international standard for gold, silver, and precious stone trading. An ounce refers to the precise weight of 31.103 g. To find the price of a gram of gold, simply divide the price of an ounce of gold by 31.103.
Historical trends in gold prices in recent years
The difference between plated and real gold depends on this notion of value. In the case of a piece of jewelry whose alloy actually contains gold (even if it is only 9 carats), the valuation must take into account the price of an ounce of gold and its fluctuations, which have been rising for 20 years. Since 2000, it has increased by more than 600%, going from $280 an ounce of gold to more than $1,800. Behind this overall upward trend, however, there are some irregularities, including a notable drop in the price in 2013. This drop is due to several factors that have led to a drop in demand. Among them:
• An overall recovery of the global economy and a reduction in inflationary risk
• A restriction on gold purchases implemented by the Indian government, a country traditionally among the largest buyers
• The economic slowdown in China
• The announcement of the sale of part of Cypriot gold stocks
In 2014, the price of gold rose again against a backdrop of geopolitical tensions in Ukraine and doubts about the strength of Chinese economic growth.
In 2020, the global health crisis caused by the Covid-19 virus gave new impetus to the price of gold, pushing the price per ounce to unprecedented levels.
A record that would nevertheless be broken again in 2023, in the context of the war in Ukraine and the war Israel-Hamas.
These various reasons for the decline and rise include the traditional factors influencing the price of gold: economic, geopolitical, and speculative.
Do you own an 18-karat gold piece of jewelry and want to know its value, at a time when the price of gold is breaking historic records? Gemme jewelry stores offer a reliable service to appraise your jewelry online: a free appraisal service for your 18k jewelry at its resale value. Our gold and antique jewelry experts will base their assessment on the price per ounce of gold and will also take into account, where applicable, the jewelry or historical value of your antique jewelry. Whether you have a signed or unbranded piece of jewelry, with or without a hallmark, with or without a certificate, send us your photos and any purchase invoices for an initial estimate of the value!
