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LARGE BAG OF GOLD FLAKES 10 GRAMS BONUS
LARGE BAG OF GOLD FLAKES 10 GRAMS BONUS
Paypal   US $12.99
EXTRA LARGE BAG OF GOLD FLAKES 20 GRAMS BONUS
EXTRA LARGE BAG OF GOLD FLAKES 20 GRAMS BONUS
Paypal   US $23.99
LARGE NEVADA GOLD NUGGET 80 GRAMS
LARGE NEVADA GOLD NUGGET 80 GRAMS
Paypal   US $67.45
Beautiful Large 67 gram Arizona Gold Nugget $ 259
Beautiful Large 67 gram Arizona Gold Nugget $ 259
Paypal   US $259.00
1 2oz cal large 156 gram gold nugget 14k bale
1 2oz cal large 156 gram gold nugget 14k bale
Paypal   US $1,000.00
large 1541 Gram Australian Gold Nugget Nuggets Bullion
large 1541 Gram Australian Gold Nugget Nuggets Bullion
Paypal   US $725.00
22 GRAM LARGE CALFORNIA HIGH SIERRA 49ers GOLD NUGGET
22 GRAM LARGE CALFORNIA HIGH SIERRA 49ers GOLD NUGGET
Paypal   US $125.00
21 GRAM LARGE CA HIGH SIERRA 49ers GOLD NUGGET CHEAP
21 GRAM LARGE CA HIGH SIERRA 49ers GOLD NUGGET CHEAP
Paypal   US $110.00
LARGE CALFORNIA HIGH CSIERRAS GOLD NUGGET 16 GRAMS
LARGE CALFORNIA HIGH CSIERRAS GOLD NUGGET 16 GRAMS
Paypal   US $85.00
High Grade Cal Gold River Nugget LARGE 14 Grams
High Grade Cal Gold River Nugget LARGE 14 Grams
Paypal   US $124.99
RECOVERED SCRAP GOLD LARGE DENTAL TOOTH CAP 4 GRAMS
RECOVERED SCRAP GOLD LARGE DENTAL TOOTH CAP 4 GRAMS
Paypal   US $11.50
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Wholesale gold jewelry trading guide for entrepreneurs

For those of you who are thinking about selling gold jewelry, it is crucial that you understand fully how to determine the price for gold jewelry. Not only this can help you to tell a good deal from a bad one, it also helps to analyze your competitors and understand the market better before you make any investment.

Gold price
The most important part of wholesale gold jewelry trading is to understand the breakdown of the cost of a piece of gold jewelry. Let‘s say the current good price is $500 per ounce. To calculate the cost of gold for a piece of 14 karat gold jewelry that weighs 3 gram without any stones, we first divide the price per ounce by 31.5, to get the price per gram, which is $15.87. This is the price of pure gold. To convert this to 14K gold, knowing that there are 24 karats in pure gold, we divide $15.87 by 24 and multiply the result by 14. The price per gram for 14k gold is roughly $9.26. Therefore, the total cost of the gold for a 3 gram ring would be $27.78.

Labor Cost
Another major part of the cost for a piece of gold jewelry is the cost for labor, especially for pieces set with precious stones. Gold jewelry generally requires some filing and polishing after it is cast out of the mold. The labor cost can sometime be as high as $2 per gram, depending on the origin of the jewelry and the style. In addition, the cost of setting any stones on a gold jewelry can be over one dollar per stone. Certain advanced setting such as channel set and invisible set cost even more because of the high level of craftsmanship required.

Markup of Competitors
A good way to analyze if a certain style of gold jewelry is profitable and beneficial for a business is to understand your competitors' prices. Since you already know how to calculate roughly the cost of a piece of jewelry, and therefore the price that you can get it, buy looking at the markups of your competitors, you may get an idea of how severe the competition is. For instance, if the competitors are marking up the jewelry three times of the cost, the competitiveness of that style is not really that high. On the other, if everyone has the same pricing and the markup is 50% above the cost, the style might have already saturated the market.

Volume trading
Another angle of looking at the pricing issue is that when the competitors are marking up at a low margin, the item is probably accepted by a lot of consumers. The justification behind it is that when the profit per piece is low, and people are trading them actively, there probably is a high demand for it. On short, the higher the profit margin, the low the volume of sales and the low the profit margin, the higher could be the volume of sales. Another point that is worth noting is that the volume theory also applies to jewelry vendors. If you buy in large quantity, pricing should go down automatically. Therefore, running a successfully business involves getting the balance between all the factors within the resources and infrastructure you have such as employees and capital.

Closeout Jewelry
Since jewelry business is highly time-sensitive, styles that were once popular several months ago may not sell at all couple months later. Therefore, when buying gold jewelry wholesale, you should estimate the monthly sales and stock according to the sale volume. For example, you may want to stock a certain style for two months worth of stock and restock it when it runs out in order to minimize the closeout items in the inventory, which is sometimes referred to as inventory shrinkage.

By understanding the market and your competitors before buy wholesale gold jewelry, you can reduce the mistakes during your entrepreneurial endeavor, thus increase the chance of succeeding tremendously.

About the Author

Scott Murff got his MBA from MIT business school and currently is the marketing manager in 14K gold earrings that specializes in wholesale gold jewelry including gold and cubic zirconia body jewelry.

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