Welcome to Aurea’s first newsletter of
2012. The first topic of the year is gold, the types of gold and price
of gold particularly.
This newsletter is about one of the, if not the
most important components of jewellery, that being gold. It is not about
explaining the economics or “how and why” the price of gold fluctuates
or the detailed metal
composition of each type of gold, but to offer knowledge assisting you
when next making a decision on that piece of jewellery you have your
heart set on.
Happy Reading, Aurea Designs
Types of Gold
When buying a piece of jewellery made of gold, one of the first
decisions you will need to make is whether you want 9ct or 18ct and anything in between.
Gold itself is a soft metal and is not really
suitable for jewellery in its raw state (24ct). To overcome this, other
metals such as silver and copper are added to increase strength and just
as importantly affect the
colour. Simply, 18ct gold is 75% pure gold and 9ct is 37.5% pure
gold. As mentioned, the rest is made up of other alloys added for
strength and colour.
It is interesting to note that 18ct yellow gold
and 18ct white gold have the exact same amount of raw gold content but
only differ in the other alloys added such as silver and palladium for
white gold (as well as a rhodium
plate finishing). Other colours such as rose gold have copper added to
give the gold that reddish colour. The varieties are almost limitless
and include green, grey, black and purple. All using raw gold as its
basis and mixed with other alloys
So when buying a ring made of gold, regardless
of colour, all 18ct gold jewellery is 75% raw gold and the balance made
up of other metals to produce these
Price of Gold
What Aurea has found amazing has been the
phenomenal growth in the price of gold over the last 5 years. In 2007
gold was worth about $677 per ounce and has since increased to $1781,
peaking at nearly $2000 per ounce in July
Regardless of the why’s behind the price movements of gold, the jewellery industry is directly affected by these changes.
Applying these fluctuations to Aurea’s
jewellery, the cost of gold we use is now 300% more expensive today than
what it was in 2007. Put differently, the cost of the gold (material wise) to make any piece
of jewellery is 3 times more expensive than in 2007.
This increase has led to the recent trend
of people selling their unused gold jewellery. It is worth considering
selling any pre-loved gold that you have, anything not worn, or broken
can be used. People may be pleasantly
surprised at the value they can get for their pre-loved jewellery.
At Aurea, we are also able to use your
pre-loved jewellery, regardless of its type, i.e. 18ct/ 9ct/ other, or a
mix of all and use it to make a new piece of your
If you would like any further information
on this topic or any other jewellery related manner, please contact us
and we will provide all the assistance we can.