Gold can be bought for more reasons than you think. Some people simply want to wear the jewellery for many coming years, whereas there also those who want bullion, coins or pieces that can retain much of their value as time goes by. Regardless of what the gold in question buys you, being aware of exactly what you are purchasing holds true as a solid foundation to making a good purchase.

Whatever type of gold you are eyeing, what the item looks like provides few clues to what exactly you’re paying for. Gold content, weight, craftmanship, condition and the value the seller aims to get all play part in determining the amount you spend. Once you know how these elements influence a gold price, you can make comparisons without placing too much focus upon the gold’s appearance.

Decide What Kind of Gold You Want First

Before looking into price guides, decide whether you are looking to buy the gold for personal use or the value the metal offers.

Gold jewellery comes in many forms, such as rings, bracelets, necklaces, earrings and many more wearable items. The actual cost of the item is likely to reflect not only the amount of gold involved, but also the work done to give the finished pieces its form, design, texture, any brand value applied and other factors.

Gold bullion bars and investment oriented coins are other popular gold products. In this category, the focus is more about the weight of the gold, its level of purity and how much the seller charges for the privilege of buying gold from them.

Collectable coins are also another category of gold, although their value may greatly depend on rarity, condition, age and any demand from collectors willing to pay more than what the gold weight suggests.

Knowing the category you’re interested in makes it easier to find price comparisons.

Learn About Gold Purity and Karats

Pure gold is known as 24 karat, although this form of the metal is rarely seen due to being quite soft.

Lower karat gold is an alloy, which blends other metals with gold to give it more strength, change the colour and make gold jewellery more suitable for day to day wear. Some common levels of gold purity you can see in products are:

• 24K: Very high percentage of gold, although not as strong
• 22K: High level of gold, mixed with other metals to add strength
• 18K: 75% gold, common in higher end jewellery
• 14K: Lower percentage of gold but much more durable
• 9K: 37.5% of gold, very common in Australia

While items with the highest level of gold purity may seem like an obvious choice, a more durable piece can often prove to be more desirable, especially where jewellery is concerned. For bullion, the interest in high levels of gold increases substantially. Look out for a purity mark if considering buying second hand gold, but remember that this alone should never be used as confirmation of a gold’s content.

Compare Weights Against Purity Level

What the item looks like holds little importance when comparing one piece of gold to another, due to the sheer variety of ways a piece can be made. A thick bracelet that is largely hollow, for instance, holds considerably less gold than a thinner, but solid band. Another important factor to remember is the amount of gold within an alloy. An 18K ring, for instance, has a much higher content of gold than a similar 9K ring does.

It is for this reason why both the alloy percentage and the weight of a gold item are so important when making comparisons. Where jewellery is concerned, it’s also a good idea to consider if there are any gemstones or other materials included with the purchase, since those are unlikely to be gold and so shouldn’t be factored into the weight when considering gold content.

Understand Why Retail and Gold Value Are Separate Figures

One of the biggest misconceptions when learning how to buy gold is that whatever you’re purchasing reflects the amount of gold on the market. Gold jewellery can have a price that greatly exceeds the value of the metal content, because of extra costs involved with the creation of the piece.

Those costs can include design and manufacturing polishing and finishing retailer costs brand value Gemstones and special crafting Markups for the retail price

All of those costs can be completely legitimate if looking at an interesting piece of jewellery fit for daily wear, but they do mean the stated value of the item isn’t solely representative of the gold content. Someone who is buying gold for the metal should take a close look at how much goes into an item’s finished price versus what value its weight holds on the market.

Inspect Construction for Gold Jewellery

While purity is a good starting point, the construction of gold jewellery can prove to be just as important factor when considering the value and long term viability of the product.

Look at clasps, hinges and soldered areas, as well as any settings for gemstones. Fine chains should move freely, but not have any obviously weakened links. Rings with gemstones should hold the setting firmly, and not have obvious signs of wear on the claws holding the stone in place.

Hollow jewellery can look impressive while also weighing less, but it can also prove to be far more prone to dents. Someone who wants to wear the jewellery they buy should consider the importance of a sturdy build, rather than simply thinking about the potential consequences of any weaknesses once damage does occur.

Watch Out When Looking At Buy Sell Prices

The amount you pay versus what another entity will pay seldom match up, due to the differences in what each side is accountable for. A jewellery retailer, for instance, will have far different costs than a business that buys used gold from customers and sells bullion on the market.

Buyers looking to resell gold should watch closely at what independent gold buyers such as Melbourne gold buyers charge when considering an item for resale, keeping a keen eye out on what influences the valuation. This can include purity, weight, testing and much more, and so should not be confused with what a legitimate seller would charge for comparable gold.

Receipts and paperwork can still be helpful, though, where identifying information of the original item, purity or any gemstones go, but they should never be mistaken for an assured valuation in the future.

Ask About How the Gold Has Been Tested

Determining whether gold has been tested correctly becomes especially important if considering buying gold from an independent source, or selling back an item that the original seller claims has a certain level of purity.

Professionals will test gold using a number of methods depending on the item in question. Testing serves to ensure the gold in question has the purity level advertised, free from being gold plated.

Gold plating sees a very thin layer of gold over another metal to give the appearance of solid gold jewellery without the expense. Terms such as gold filled or solid gold also describe very different methods of creating jewellery, and so it’s important to confirm exactly what you are getting.

Be Aware of Different Colours of Gold

While yellow gold is the traditional choice for most buyers, white and rose gold also offer interesting alternatives in terms of aesthetics.

Rose gold has a pinkish hue to its appearance due to the metals used in the alloy, whereas white gold is created using metals that offer a pale colour when mixed with gold. A surface treatment may also be applied depending on what the piece in question is.

All things considered, the colour of your gold is a matter of personal preference. Finer detailing and maintenance requirements can vary, so ask about how a particular piece is finished and what care it may need if you are looking to buy gold jewellery as part of your everyday wear.

Avoid Being Misled by Appearance Alone

Gold can be polished, shaped, layered and blended with other metals to create interesting effects, but how the item looks is seldom a good indicator of purity or value.

Where important details such as karat or fineness, total weight, whether the piece is solid or hollow and any gemstones incorporated apply, get these confirmed in writing if possible when purchasing gold. For expensive pieces, independent testing can also prove to be a valuable investment if there is a risk key information cannot be confirmed.

Make Sure You Understand What You Are Paying For

A good purchase of gold is one where you understand why the item costs what it does. Purity tells you how much is genuine gold, weight informs you as to how much material there is and the level of craftmanship explains why a piece costs more than the raw materials suggest.