GOLD

A Buyer's Guide for Gold Jewelry

GOLD JEWELRY HAS been a must-have accessory for women throughout the ages. Today, gold is hotter than ever — just take a look at the fashion mags.
But knowing that you're getting your money's worth when it comes to gold jewelry can be tricky. Unlike diamond buying, there are no four Cs or grading report to help you along once you're at the jewelry counter. Here's what you need to know:

The Golden Rules

The price of a given piece of gold jewelry is roughly based on its gold content, says Antoinette Matlins, author of "Jewelry & Gems: The Buying Guide." You'll pay a per-gram price that includes both the going rate for gold (currently about $30) and workmanship and design. By that measure, you could expect to spend as little as $400 on an unadorned, 10-gram wedding band made of 24-karat gold.
As a commodity, the market price of gold has skyrocketed over the years, from a per-ounce price of $280 at the end of 2000 to $860 at the end of 2007. The increase is largely due to investor fears about inflation and the weakness of the U.S. dollar, according to the World Gold Council, but rising demand for gold jewelry and consumer electronics has also played a significant role.
Inventory will generally reflect the going rate, but don't worry: Jewelers aren't updating their prices after market's close each day.
But when you're selecting gold jewelry to buy, there's much more to consider than the market rate of its material. Consider these four factors when you're shopping:

Karat

In diamonds, carats measure weight. But for gold, karats are a measure of purity. "Think of gold as a pie with 24 slices," says Matlins. Pure gold is 24 karats; the karatage label for lesser amounts is based on how many slices, or parts, of that 24K maximum are gold. So 18K, for example, is 18 parts gold and six parts other metals. The higher the karat, the more gold in a piece of jewelry — and the heftier its price tag.

That said, it is unusual to find 24K jewelry. "Pure gold is very soft," explains Matlins. "It bends and scratches easily. When we talk about gold jewelry, it's usually 14k or 18k." Goldsmiths alloy other metals — usually copper or silver — in this lower-karat gold to lend strength and durability. Check the jewelry for a karat marking (see chart below for common gold marks). For a piece to be labeled "gold" jewelry in the United States, it must be a minimum of 10K; in Britain and Canada, 9K; and in Italy and France, 18K.

Color

"All gold starts out yellow," says Amanda Gizzi, a spokeswoman for the Jewelry Information Center, a trade group. But alloyed with other metals, gold can be any color — white, red, green and even black. No one color is more valuable than another. Price will vary based on the karatage, as well as what other metals are included. A 22K white gold piece, for example, will still be pricier than 18K yellow gold. But 22K white gold alloyed with silver will be less expensive than 18K white gold alloyed with rhodium, a member of the platinum family. (Because pure gold is 24K, the highest-karat colored gold you'll see is 23K — and that's rare, says Gizzi. Most colored gold is 22K or less.)

Design

Here, the best value will be determined by your personal tastes. But do expect to pay a premium for jewelry crafted by a well-known artist, says Matlins, or for a piece with an intricate design. "You pay for the artistry in gold jewelry, as you would for a painting," she says. Gold filigree, for example, is created by pounding gold into thin wire, which is then twisted into a complex pattern and surrounded by a stronger gold frame. Check the piece for a manufacturer's trademark (usually found near the karat mark). High-end goldsmiths include this so the piece — and its quality — can be traced back to them.
Steer clear of pieces that are described as having gold plate (electroplate), fill or overlay. These pieces are made of one metal — anything from silver to nickel or lead — and coated with a thin layer of 10K or better gold. "It's not considered fine jewelry," cautions Matlins.

Production

How a piece is created will greatly affect its price. Machine-made jewelry is the cheapest option, while machine-made, hand-finished pieces are slightly more expensive. The priciest gold jewelry is created entirely by hand. "If a designer has to spend 30 hours making a chain, that's going to be reflected in the price," says Gizzi.

Shopping Tips
Stick with reputable retailers

Just because a piece is marked 18K gold doesn't mean it is, warns Gizzi. Less scrupulous sellers may put a high karat mark on a low-karat piece; a practice called under-karating. Shop with a retailer you trust, and be wary of no-name sellers online.

Consider an appraisal

Diamonds and gemstones aren't the only jewelry that needs appraising. If you're buying a pricey piece, an appraisal can give you an accurate measure of karat and composition.

Get hands on

"How does it feel against your palm, your skin?" says Matlins. Put back any piece that has sharp edges, or is otherwise rough or uncomfortable to wear.

Flip it over

A well-crafted piece will look just as nice from every angle, while a machine-made piece may look unfinished.