It's All About
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| Behind the Online Jewelry Valuation Self Appraisal Kit is a MYSQL database with up-to-the-minute prices and information (such as Hallmarks), which prints not only the bottom line, but also writes a descriptive certificate. Neat, eh? |
Okay, let's start the second section of the worksheet under the heading of the 'MOUNT'. This lesson should NOT be called 'The Sermon on the Mount' but I couldn't resist the pun. Sorry.
The importance of this segment becomes apparent when you realize that ALL Fine Jewelry will be entered here. Some items will have no gemstones at all, but everything will be made of either gold, silver or platinum.
TIP: Yes, I know there are going to be SOME exceptions to the last comment (Art Deco, Retro, Bakelite or Plastics Jewelry) but if we were to do a Valuation Appraisal on such items, we would pass it on to a 'Specialist'. For 99 percent of other jewelry in the world, the above statement holds true.
Next to the heading 'Price per Ounce' and under the precious metal heading this Sapphire and Diamond ring is made from (gold, in this case) we enter the amount in YOUR currency.
Everything is based in US Dollars (my examples will be done in that currency), which makes life easy for Americans, but if you live in Australia, Canada, Europe, etc., just use the exchange rate to arrive at the correct figure.
For example: The price in US Dollars today (given on the lunchtime TV News) is US$432 AMERICAN DOLLARS per oz.
There are literally thousands of websites and News pages or financial sections in your local newspaper which will give the daily price of gold.
Don't be too dogmatic about this figure as it is only a guide. If it's US$432 today and $436.55 next week, that is NOT going to make any difference to the final price as I will explain later.
So it's out with the kids' calculator and DIVIDE the gold price by the exchange rate (which you will also find in the daily paper) and then MULTIPLY by 100 to give you the price of gold per ounce in your currency.
The exchange rate for Australian dollars is 77.18, so just divide 432 by 77.18 which equals 5.597305 and then multiply by 100 which is 559.9705 or rounded up to $560.00 Australian dollars per ounce. Anyone can do it.
| Thankfully the exchange rates, plus gold, silver and platinum prices are all built in to the Online Jewelry Valuation Self Appraisal Kit, so we don't have to do it. Hooray! |
In the next few paragraphs I have used ÷ or / symbols for division and x or * for multiplication, so just go with whatever your system uses.
As we work through these sections, it might be a good idea to complete one worksheet in your currency, and one in US Dollars so we can compare figures as we go.
All we have left in this row is the Carat (ct) quality and Color which from the photograph you should have seen were 9ct and yellow gold. I shall tell you now that the weight is 3.4 grams, so all we have to do is get the price per gram ($ppg) and work out the subtotal. How do we do that?
Now this next bit sounds a little complicated, but once done a few times, becomes almost second nature and is one of the MOST USEFUL tips you can ever have, so get ready - but go slowly.
One ounce of gold is equal to 31.103 grams but we will use the trade standard of 32 grams for ease of use.
Because we need to know what 1 gram of gold is worth, we have to divide our price per ounce figure by 32. That is: 432÷32 = 13.5.
But wait... There's a catch because that gives us the price of one gram, but that's PURE GOLD not 9ct, 18ct or whatever quality we are valuing, so we have to do another division.
Pure Gold is 24 carat so we need to divide again our one gram figure of 13.5 by 24 (to give us 1 gram of 1 carat) before we MULTIPLY by the quality of gold we wish to value. Phew.
Let's do it:
13.5÷24 = 0.5625 which we multiply by 9 in this case because it's 9ct, so 0.5625 x 9 = 5.0625. Now that's real money in US dollars, but it's still only for one gram of 9ct, so finally we have to multiply it by the weight (3.4gms) of the item we are valuing - the sapphire and diamond ring.
5.0625 x 3.4 = 17.2125 US Dollars of gold in this ring. That's cost price of course. Not trade price or retail.
So the quick formula is: (price per ounce) DIVIDED BY (grams per ounce) DIVIDED BY (pure gold quality) MULTIPLIED BY (quality of item being valued) MULTIPLIED BY (its weight).
That is: 432÷32÷24x9x3.4 = 17.2125 US Dollars. Not so Bad eh?
Oh, and what has all this got to do with 'Coins'?
Well if you don't have a kitchen scale or manual balance available, use the one God gave you. Your hands. You'll be surprised just how good you can get with a little practice.
A one-cent US coin weighs 2.5 grams, so put a jewelry item in one hand and a coin or a couple of coins in the other until you get an approximate weight.
I have known gem dealers to be accurate to within a gem carat using this method (that's one-fifth of a gram).
Two coins are 5 grams, a 5-cent piece is 4.7 grams while an Aussie 5-cent piece is 2.8 grams and a 20p coin in Britain is 5 grams exact.
Why not try this with your coins at home. A Canadian 5-cent piece is 4.6 grams. Most rings are around this weight.
There is no need to guess from now on when you are at auction or in the pawn broker's looking for bargains. Just hold a coin in one hand and the item in the other. You'll soon see why I'm never broke because I've ALWAYS got change in my pocket.
Next time on 'Survivor' or 'The Amazing Race' (or as we like to call it) this 'Amazing Valuation Course' which we know you will 'Survive', we will look at the next line of the worksheet and discuss the types and values of manufacture.
I'll go tally the votes...
Meanwhile, you can head over to Part 6 of this mini-course, The Manufacture of Jewelry, where we'll cover the different types of manufacture, the time it takes to make something, and the costs charged and how that affects a Valuation Appraisal.
P.S. You can always get a Valuation Appraisal done quickly and easily with minimum effort by going to the Valuation Appraisal Centre at the address listed below and print your Certificate at home or work.
You'll find the address at the end of this article, where there are hundreds of tips not found anywhere else.
Author David Foard, a Fellow of the Gemological Association of Australia (F.G.A.A.) and former member of The Valuers Council (JATVC), is retired ("Ha..." he laughs). He is working harder now than at any time in his life, especially over the 30 years he spent in the Antique Jewelry Trade as a qualified gemologist and member of the Valuers Council. Now he concentrates on the "three R's" of Readin', Ritin', and Re-ritin' articles, courses and free report newsletters at his Online Jewelry Appraisal Center website.
David says, "All of the calculations and procedures done throughout this series of articles are built into our Online Jewelry Valuation Self Appraisal Kit, which does all the work for you. Why? So you don't have to. Simple...
"If you are really serious about getting a jewelry valuation appraisal done quickly and easily, then go to our Online Jewelry Valuation Self Appraisal Kit to value your own jewelry and reproduce a certificate on your own printer at home or work. Couldn't be any easier.
"Our online jewelry valuation self appraisal kit uses behind-the-scenes calculations that work with your answers to a set of multiple choice questions to derive exactly 'What's it worth'. Easy, eh? We use this system ourselves.
"Regards, and please watch the road."
Return to top of The Importance of the Worksheet.
Return to Part 1 of this course, Jewelry Appraisal.
Return to Home Jewelry Business Success Tips home page.
