Why a jeweller’s price is not the world price

The price on a jeweller's tag and the metal value shown on this site are different things, and mixing them up is how people end up feeling cheated. The calculator here works from the world metal price. A shop quote works from that price plus everything a business needs to survive and profit. Knowing where the gap comes from helps you read any quote calmly.

The first layer is the making charge. Turning metal into a ring, chain or bangle costs labour, tooling and time. A plain band and an intricate piece can carry very different making charges even when they hold the same weight of metal. Some shops fold this into a rate per gram; others quote it as a lump sum. Ask which, because the lump sum often hides more than it shows.

The second layer is the shop's margin. Rent, staff, lighting, insurance and the owner's return all sit inside the sticker price. This is normal trade, not trickery, but it means the same metal can carry a different price on different streets.

• Buy-back spread: what a shop pays when you sell back is usually below what it charged, because refining and resale carry cost. Ask for the buy-back rate in writing before you buy.
• Purity differences: the usual jewellery purity is not the same as fine bullion. A piece stamped with a lower purity holds less pure metal, so its metal value is lower even at identical weight.
• Local premium: demand in a particular city or season can push shop prices above the world rate for a while.
• Hallmark and receipt: a hallmark backs the purity claim, and a receipt that lists weight, purity and making charge separately is your only real protection later.

To compare shops fairly, strip each quote down to its parts. Note the weight, the stated purity, the making charge and any other add-on. Convert the metal portion using the calculator on this site, then see what remains. That remainder is what you are actually paying for craft and convenience. Compare remainders, not totals, because totals mix metal and service together.

Also compare like with like: same purity, same weight, same design complexity. A heavier piece at a lower rate per gram is not automatically better value. And remember the calculator gives metal value from the world price, not a shop quote, so treat its output as a reference point rather than a target you can demand at the counter.

None of this tells you where prices will go, and nothing here is investment advice. It is simply a way to see what a quote is made of, so you can decide whether the craft and service on offer are worth the difference.