Wholesale Gold Jewelry Trading Guide For Entrepreneurs

For those of you who are considering selling gold jewelry, it’s crucial that you simply understand fully how you can determine the price for gold jewelry. Not only this can assist you to tell a good deal from a bad one, it also helps to analyze your rivals and understand the market better before you make any investment.

Gold price The most important component of wholesale gold jewelry trading is to understand the breakdown of the cost of a piece of gold jewelry. Let’s assume that the current great price is $500 per ounce. To calculate the price of gold for any piece of 14 karat gold jewelry that weighs 3 gram without any stones, we first divide the cost per ounce by 31.5, to get the price per gram, which is $15.87. This is the price of pure gold.

Labor Price Another major part of the price for a piece of gold jewelry is the price for labor, particularly for pieces set with precious stones. Gold jewelry generally demands some filing and polishing after it is cast out of the mold. The labor price can sometimes be as high as $2 per gram, depending on the origin of the jewelry and also the style. In addition, the cost of setting any stones on a gold jewelry can be over one dollar per stone.

Markup of Competitors A great manner to evaluate if a certain style of gold jewelry is profitable and beneficial for a business would be to realize your competitors’ prices. Because you already know how you can calculate roughly the price of a piece of jewelry, and as a result the price that you simply can get it by seeking for the markups of your rivals, you might get an idea of how intense the competition is.

Volume trading Another angle of taking a look at the pricing issue is that when the competitors are marking up at a low margin, the item is most likely accepted by a lot of consumers. The justification behind it is that when the profit per piece is reduced, and people are trading them actively, there most likely is a high demand for it. In other words, the greater the profit margin, the lower the volume of sales and also the lower the profit margin, the higher could be the volume of sales.

Closeout Jewelry Because jewelry company is extremely time-sensitive, styles that were once popular several months ago may not sell at all couple months later. As a result, when buying gold jewelry wholesale, you ought to estimate the monthly sales and stock according to the sale volume.

By understanding the market and your rivals before you buy wholesale gold jewelry, you are able to decrease the mistakes throughout your entrepreneurial endeavor, thus improve the chance of succeeding greatly.

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