The process of calculating labor costs for gold jewelry and deducting this cost from the value of the gold is performed by jewelers or goldsmiths using a standard commercial logic called purchasing scrap gold. For jewelry, rings, bracelets, necklaces, ornaments, and gold-plated items, the labor cost is calculated based on the total weight of your gold and is deducted from your pure gold value, thus defining it as scrap gold. Labor costs are not deducted for pure gold and investment gold (pure gold, bullion, mini bars, Republic gold), but even for these golds, some in Türkiye and internationally calculate and deduct labor costs. Wastage and losses incurred in the separation of the gold are also included in this calculation. The seller should be aware of this and replace the gold jewelry or sell the investment gold. Labor costs are calculated based on the total weight per gram, not the amount of pure gold. This may seem unfair and harmful to the seller, but re-melting scrap gold and separating the pure gold from the alloy is difficult and costly. The difference is the jeweler's or goldsmith's commercial profit margin. It should be. This commercial logic is almost universal. If a jeweler calculated their labor costs based on the weight of pure gold, they would have to pay the refinery themselves to separate the mixed metal from the gold, but when waste and losses are added, they would lose money. In that case, there would be no point in being a jeweler. Labor costs for gold vary by model, with the lowest for plain models (for example, higher for twisted bracelets, lower for plain bracelets). By 2025, this discount will generally be between $5 and $40 per gram.
Örnek-1: You want to exchange your 60-gram 22-carat plain bracelet on a day when the gold exchange rate is $100 per gram. The jeweler or money changer you'll exchange your gold for will quote you a price based on the following calculation: Firstly Know the basics of the concept of carat in gold: Since 24 is considered full purity, 22/24 = 0.916 grams or 916.6 milligrams (mgr) of pure gold is equivalent. Each carat is proportioned to 24, determining the milligram of purity, or the amount of pure gold in 1 gram, of that carat. Accordingly, for the bracelet in the example, the jeweler will;
- First, calculate the amount of pure gold and its value based on the live exchange rate: 60 grams X 0.916 = 54.96 grams of pure gold. Its market value according to the live exchange rate is 54.96 grams X $100 = $5496. This is the current market value of your bracelet in pure gold (unalloyed).
- Then, it will calculate the labor cost based on 60 grams (60 grams x $10 = $600) and deduct this from your pure gold holdings: $5496 - $600 = $4896 will be the lowest it will offer you, and it should be! If not, and if it's lower, it may be calculating the labor cost per gram higher, like $20 instead of $10. At this point, it's in your best interest to look for a jeweler who offers the lowest labor cost per gram and the highest price. Remember, your pure gold value must be calculated the same everywhere else you get quotes. Or, use our pure gold value calculator. Calculate it yourself by entering the daily live exchange rate and go to the market to avoid unnecessary trouble. Instead of performing the process we gave in the example separately, jewelers and money changers have now resorted to the convenience of calculating all at once using the invented figure of the 22-carat bracelet buying rate. Therefore, while there's only one global gold price, a variety of new exchange rates have been invented, such as separate buying and selling prices, or the buying and selling rates for 22 carats. You don't have to worry about or know these exchange rates when selling or exchanging your gold. Simply reading your gold's fineness mark, measuring its approximate weight on a kitchen scale, and then using our Pure Gold Value Calculator can give you an approximate value of your asset based on today's live gold price per gram. Once you're confident in your gold's weight and fineness, all that's left is to search the market for someone who will charge you the lowest labor cost. The answer to the question of whether gold loses value when selling depends on the live exchange rate between the day you buy and the day you sell it. The total amount you paid when buying your jewelry—the labor cost per gram + the profit + the labor cost per gram to be deducted when selling—should be equal to or below the value of the gold offered to you, so you don't sell at a loss or lose money on labor. Of course, you might not remember the price and daily exchange rate of gold jewelry you bought in the past. If you remember the total price you paid, then that's the case. You can calculate your pure gold value based on the gold exchange rate at that time on our >> Gold Gram Price page and find out how much labor and profit you paid for it, in other words, your approximate cost. This is beneficial if you're not urgently selling your gold, as it will allow you to wait for the exchange rate to reach a level that covers your costs. Regardless of the type of gold you buy, it's best to keep a record of the current exchange rate and the total amount you paid. This is because you can calculate the future selling rate by dividing the total amount you paid by the amount of pure gold. When the exchange rate reaches that level, you should consider selling it. If it's jewelry, don't forget to deduct the approximate labor cost!
Example 2: Let's say you bought your 22-carat, 30-gram bracelet for $4,000 and sell it now when the gold exchange rate is $100. Consider whether you'll lose money! The jeweler will make you an offer based on the following calculation: 30 grams x 0.916 = 27.48 grams (amount of pure gold) x $100 = $2748. This is where the loss comes in! Your pure gold value isn't enough to cover the price you paid! The jeweler will deduct the labor cost per gram from your assets: 30 grams x $15 = $450 = $2298. This is where the second loss comes in. If you sell your gold bracelet, you'll lose! Because you paid less than the $4000 you paid for your current pure gold. Even if the jeweler or money changer doesn't deduct the $15 per gram labor cost, their bids won't exceed $2748 at best, because they'll lose money. So, let's look at what you need to do to sell your bracelet without losing money. The solution is to wait for the gold exchange rate to rise. So, what is the minimum $ exchange rate you should expect to reach to sell it without losing money? The calculation and solution are simple; the answer is your cost price. Excluding labor, you should expect it to be at least $4000/27.48g = $145. Or, if you don't want to lose money on labor, you should add the labor cost to your purchase price, calculate $4000+$450=$4450, and calculate the result to your pure gold amount, i.e., $4000/27.48g = $145.5. You should wait for the gold price per gram to reach $4450/27.48g = $161.9. This method is used to calculate the labor cost for gold and then deduct it from the price to present a price. This is the principle, method, and logic of trade. It's the same everywhere in the world. The money changer who buys your used bracelet from you in exchange for scrap will pay the refinery to separate the pure alloy and will incur a loss. What should I do before selling or exchanging gold? Whether you're a gold buyer or seller, find out the true gold value by entering the live exchange rate and never trade below this value! Gold labor costs depend on factors such as time, labor, expense, workshop costs, materials, whether it's handmade or mass-produced, the complexity of the design, production techniques, and brand value. Don't just consider the gram value of your gold jewelry when you go shopping. These sequential variables that affect the cost calculation are the reason your gold prices may vary. Don't always attribute ill will to a mall jeweler who offers high rental fees, even for a 5-ounce minibar. Discuss the costs openly and reach an agreement. Either learn! Or accept!