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Sunday, November 20, 2011

How To Gain idea of the Price of The Gold?

Weights of products we send you may vary from those shown on this website due to manufacturing tolerances. Prices charged on your invoice will be based on the actual weight of the products delivered to you. In the gold section the final price you pay will be based upon the gold price at the point at which you order, and the exact weight of the items you have selected. The weights quoted are estimated weights.
For example: if you select a curb bracelet at £7.05 per gram at a weight of 6.5 gms the cost will be:

7.05 x 6.5 = £45.83 which we calculate for you. 
When your bracelet arrives it may weight 6.3 gms so you will be charged:
7.05 x 6.3 = £44.42 
or it may weigh 6.7 gms and you would be charged: 
7.05 x 6.7 = £47.24 
but the gram price of 7.05 will be the same - same good value, whatever the weight.
This is the way that almost the entire wholesale jewellery trade operate, and the only way to operate effectively if you work on small margins. When a shop purchases gold from a wholesale jewellers, the goods are weighed and a price per gram paid, the same way that we charge you. UK gold prices are fixed twice a day and we often change prices to reflect this, so an item in which you were interested in the morning may be a different price in the afternoon.
Prices quoted are what you pay, there is NO additional Vat to calculate.
Price Per Gram (ppg)
This is a calculation that allows jewellery dealers to compare how much we are paying for an item. If we wished to purchase a curb chain for instance that costs £100 and weighs 25 grams the cost per gram is:

100 divided by 25 = 4 pounds per gram. 

We are paying £4 for every gram of gold. If another chain costs £200 and weighs 40 gms, the cost per gram is 

200 divided by 40 = 5 pounds per gram. 

We are paying £5 for every gram of gold. 
The second chain is more expensive on a per gram price, and to be an equal bargain should cost £160 ( 40gms x 4 pounds per gram). We calculate this for you so you can compare our prices. If a shop will not tell you how much a chain weighs, or is unable to calculate this for you, there is usually a reason!. To calculate the price per gram then:
1: Find 2 similar products 
2: Take the cost price 
3: Divide this by the weight

The one with the lowest number is the better deal for identical products. ie 4 ppg is better value than 5 ppg.