How Gold Jewellery is Priced: Understanding Fixed Price & Price-by-Weight Jewellery

Gold Jewellery Pricing: What You Need to Know

Gold has long been synonymous with luxury, tradition, and value. Whether you're investing in a timeless piece or selecting an elegant accessory for everyday wear, understanding how gold jewellery is priced ensures that you make an informed choice. From market-driven pricing to meticulously crafted statement pieces, gold jewellery generally falls into two pricing categories: Price-by-Weight and Fixed Price. Here, we break down the differences, the pricing formula, and how to determine which model best suits your needs.

Price-by-Weight Jewellery

Price-by-weight jewellery is straightforward: the total price depends on the weight of gold and its current market rate.

How It’s Calculated

📌 Formula: Gold Jewellery Price = Gold Weight × Price Per Gram (or Per Tael) + Labour Charge + Commission
📍 Example:

• Market gold price (as of 10/3/2025): HKD 32,270 per tael
• Gold jewellery weight: 0.267 tael (equivalent to 10 grams)
• Labour charge: HKD 300
• Commission: 2%

The total price of the gold jewellery would be calculated as: (0.267 tael × HKD 32,270) × 1.02 + HKD 300 = HKD 8,850

Key Factors Influencing Price

• Gold Market Rate: The global gold price, set by institutions such as the London Bullion Market Association (LBMA), dictates the base cost.
• Gold Weight & Purity: The heavier and purer the gold, the higher its value. Common standards include 24K, 18K, and 14K gold.
• Labour Charge: Intricate designs require skilled craftsmanship, which may add to the final cost.
• Commission & Retail Markups: Some jewellers apply a commission, which varies by brand and retailer.

Best suited for: ✔ Those who value gold’s intrinsic worth. ✔ Buyers looking for transparent pricing. ✔ Classic jewellery lovers who prefer timeless, investment-worthy pieces.

Fixed Price Jewellery: Where Design Meets Craftsmanship

Fixed price jewellery is not solely determined by weight—it is priced based on the overall artistry, design exclusivity, and brand value. This allows jewellers to create statement pieces that transcend the value of raw gold.

Why Fixed Price Jewellery Costs More?

• Exquisite Craftsmanship: Labour-intensive techniques, such as intricate goldsmithing or gemstone setting, contribute to a higher price.
• Innovative Design: Distinctive styles, limited collections, and custom pieces often command premium pricing.
• Brand Heritage: Established jewellers set fixed prices based on their reputation, exclusivity, and exceptional quality.
• Gemstone Adornments: Unlike pure gold jewellery, pieces featuring diamonds, pearls, or coloured gemstones fall under the fixed-price category.

Best suited for: ✔ Buyers seeking unique, designer-led jewellery. ✔ Those who appreciate artistry over raw gold value. ✔ Individuals who prefer stable pricing unaffected by market fluctuations.

Making an Informed Purchase

Whether you choose price-by-weight for its transparency or fixed-price for its design-led exclusivity, understanding how gold jewellery is priced enables you to shop with confidence. Both pricing models offer distinct advantages—some highlight gold’s inherent value, while others celebrate artistry and heritage. By considering your personal preferences, lifestyle, and budget, you can select a piece that not only enhances your collection but also holds lasting significance.

Disclaimer: The above information is for general reference only and explains one of the many factors influencing gold prices. It does not constitute investment advice. Readers should conduct their own research or consult with professional advisors before making any financial decisions.