Newsletter
Issue #4, 7 March 2012

Hi All,

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
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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 colours.

 Price of Gold

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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 2011.

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 design.

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.

Regards

Aurea Designs

Makers of Fine Jewellery

 

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