How is the price of gold determined?

The price of gold is based on the international market price, which changes constantly according to demand, supply and the state of the global economy. The price is affected by, for example, inflation, interest rates, exchange rates, geopolitical crises and investor interest in gold.

In uncertain times, demand for gold often grows, as gold is traditionally seen as a stable store of value. For this reason, the price of gold reacts quickly to, for example, economic uncertainty and world events.

In addition to the market price, the value of old gold jewelry and gold items is also determined by:

• the purity of the gold
• the weight of the jewelry piece or item
• any other materials or gemstones it contains

Because the world market price of gold is set mainly in US dollars, exchange rates also affect the price of gold in Finland.

Gold purity affects the value of a jewelry piece or item

Besides the market price, the value of gold is determined by factors such as purity, or karats. The more pure gold a piece of jewelry or an item contains, the more valuable it usually is. Most gold jewelry has a purity mark, which shows the amount of gold in parts per thousand.

The most common gold purities are:

• 999 = 24K gold, contains 99.9% pure gold
• 958 = 23K gold, contains 95.8% pure gold
• 917 = 22K gold, contains 91.7% pure gold
• 875 = 21K gold, contains 87.5% pure gold
  
• 750 = 18K gold, contains 75% pure gold
• 585 = 14K gold, contains 58.5% pure gold
• 375 = 9K gold, contains 37.5% pure gold
• 333 = 8K gold, contains 33.3% pure gold

In Finland, the most common jewelry gold is 14 karat gold, also known as 585 purity gold, but older jewelry and jewelry bought abroad, for example, often come in many other purities as well.

How weight affects the price of gold jewelry or gold items

In addition to purity, the weight of the jewelry piece or item also directly affects the payout you receive for the gold. Jewelry weights vary widely depending on the design, size and construction.

Below are a few approximate examples of the weights of different gold jewelry:

• Gold ring: often around 2-5 grams
• Thin gold chain: often around 1-3 grams
• Thick gold chain: can weigh 15-30 grams
• Pair of earrings: often around 0.5-3 grams
• Small gold pendant: often around 0.5-2 grams
• Gold watch: the amount of gold depends on the watch's construction and materials, but a gold-cased wristwatch with a leather strap, for example, can contain 10-30 grams of gold

The final value of gold is therefore determined by the carats, the weight and the market price of the day together. Especially because of weight and purity, there can be a large price difference between pieces of jewelry of the same size.

The price history of gold throughout the ages

The value of gold has changed a great deal in different eras, but it has kept its position as a precious metal for centuries. Throughout history, the price of gold has been affected by, for example, the economic situation, inflation, crises and investors' interest in gold.

In the early 1900s, the price of gold remained fairly stable for a long time, because many currencies were tied to gold. Later, world wars, economic crises and changes in the international monetary system began to affect the price of gold more than before.

In the 1970s, the price of gold rose sharply as a result of inflation, oil crises and economic uncertainty. After that, price development was at times calmer, but in the 2000s the value of gold began to rise again with the financial crises, geopolitical tensions and the coronavirus pandemic.

In recent years, the price of gold has been supported especially by high inflation, an uncertain global situation and investors' interest in more stable investments. The market price of gold has risen to a historically high level.

Terms related to gold pricing

The market price of gold involves several terms used, for example, in investing, pricing and buying gold. Below you will find the most common terms briefly explained.

Spot price

The gold spot price is the real-time market price, which changes according to supply and demand.

Gold market price

The market price of gold refers to the international trading price on the world markets.

Troy ounce

The ounce is a unit of weight used in international gold trading, equal to approx. 31.1 grams.

Gold price per gram

The value of one gram of gold based on the market price of the day.

Carat

A carat is a measure of the purity of gold. The more carats, the more pure gold the item contains.

Selling gold at a competitive price

Laatukoru offers the most competitive compensation in the domestic market for gold jewelry and items, based on the gold purity, the weight and the current world market price. The jewelry or items do not need to be intact or usable.

You can bring your gold for appraisal directly to a store or send it by insured post from anywhere in Finland. We appraise the gold carefully in our own goldsmith's workshop in Hyvinkää, after which we make an individual offer for it.

You can choose to exchange your gold for money or use its value as material for a new piece of jewelry, as a product or as a gift card.

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Frequently asked questions

How does the market price of gold affect the value of old jewelry?
The payment for old gold jewelry follows the global market price of gold. When the price of gold rises, the payment received for gold is usually better too.

In addition to the market price, the weight of the jewelry and the purity of the gold affect the final value.

Why does the global market price of gold fluctuate?
The price of gold changes constantly on international markets. The price is affected by, for example, the global economy, inflation, interest rates, exchange rates and investors' interest in gold.

In uncertain economic times, demand for gold often grows, which can also raise the price of gold.

How is the price paid for gold determined?
The payment for gold is based on the gold purity, weight and the market price of the day. Only the gold content is taken into account in the appraisal, which is why gemstones or other materials can be removed from the jewelry if needed.

The value of jewelry of the same size can vary greatly depending on how much pure gold it contains. In Finland, the most common gold purity in jewelry is 18 carats.

Does the condition of the jewelry affect the value of the gold?
Usually not significantly. The value of gold is based primarily on the amount of gold, so even broken, worn and unused jewelry can be valuable.

Is it worth selling gold when the price is high?
Many people have sold their old gold jewelry precisely when the market price of gold has been high, because the payment received for gold is then usually better too.

However, it is impossible to predict price developments with certainty. If you have old jewelry that has gone unused, having it appraised may be timely, especially when the gold price is at a strong level.

Can I also get a price estimate for gold by post?
Yes. You can also send gold jewelry for appraisal by post from anywhere in Finland. If needed, we will send an insured sales package that includes ready instructions and a return shipment.

Jewelry sent by post is appraised in the same way as jewelry brought to a store.