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Karat VS Carat

Carat

Gold has been traded all over the world thousands of years. For centuries it was the only standardized exchange in commerce. Diamond Grading. Carat is the common unit of measurement for all gemstones and refers to itís weight. CT is the common abbreviation used by the jewelry industry.

Karat

Karat is the unit of measurement for GOLD. It refers to the amount of PURE gold contained in an item. KT is the common abbreviation used by the jewelry industry. The following defines the percentages in the most common denominations of gold:

24KT contains 99.9% pure gold
18KT contains 75.0% pure gold
14KT contains 58.5% pure gold
10KT contains 41.7% pure gold

You will see fine jewelry items marked either way signifying the gold content. Usually when marking jewelry, manufacturers omit the decimal point and stamp the item 585 or 750, depending on the gold content.

Gold by the Gram:

Gold is measured in grams (gm) or pennyweights (dwt). The most common measurement is the gram, there are 31.3 grams in a Troy ounce. Gold is now bought and sold all over the world by the Troy ounce. There are 20 pennyweights for every ounce of gold.

Determining Gold Value:

Gold is tracked throughout the world daily by what is called a spot price. The spot price is what someone is willing to pay for an ounce of pure gold at that moment. This spot price fluctuates just like the stock market. The market moves relative to both supply and demand as well as other political issues both nationally and world wide. When the world (or your market) is facing grim times, the value of gold goes up. When the world (or your market) is feeling safe and secure, the price of gold goes down.

When ever you consider buying gold, you should be aware of the price per gram you will be paying. You must remember that when buying gold jewelry, you are simply paying for the gold PLUS any labor and marketing of the item. Smaller intricate handmade items are more costly to make than larger machine made items. Like everything in the jewelry industry, quality is king!

A common rule of thumb in the trade is that a good retail price for machine made goods is $16.00 US to $28.00 US per gram depending on how intricate the design.

For handmade items, a good rule of thumb is about double that. $28.00 US to $40.00 US per gram. Remember, this does not include any gemstones that might be set in the item any cost of labor to manufacturer the item, marketing or profit for the various steps in the process.