Some countries have a different way of purchasing jewelry than what is commonly practiced in the U.S or Europe.
Specific to some countries in South East Asia, most house wives from lower income levels will only purchase gold. The purchase of jewelry (gold) has two main purposes: to wear as daily jewelry and a form of forced saving. This market does not bother to decorate the gold with any type of gemstone. The main focus is the gold – there are thousands of plain gold jewelry designs available. The jewelry can be sold at any given time and in tern, the money can be used for any immediate need. Many use the money to purchase school supplies for their children, for traveling and any unexpected life surprises.
Tips to purchase gold jewelry in South East Asia :
- Look at the current gold price rate. It can be from the local newspaper, websites, pawnshops or to any of the local gold shops (there are plenty of them!). If you purchase gold on a Saturday you can find information to benchmark gold prices on Friday afternoon.
- If you purchase gold with gemstones, then you have to consider the state that the gold is in. Is the gold flawed? Don't forget to check the quality of the gemstone as well. Are there any chips? Any visible scratches? When purchasing jewelry in the form of a bracelet or necklace, be cautious of choosing the right clasp. There are machine made clasps and man made ones. A key way of differentiating the two is that the man made ones are round, and the machine made clasps are in the shape of the letter S. The man made ones are soft and therefor easier to break.
- Also check to see if there is any green in the pores of the gold! The jewelry owner may say that this is normal - but it is not. This means that the gold has not been washed properly and this can cause skin allergies.
- Always ask for the purity levels.
Here are are the purity levels of gold according to international standards:
24 carat gold is pure gold (99.99%)
22 carat gold has 91.7 % gold and 8.3% other materials (usually silver)
20 carat gold has 83.3 % composition
18 carat gold has 75% composition
16 carat gold has 66.6 % composition
14 carat gold has 58.5 % composition
9 carat gold has 37.5 % composition But because we are in South East Asia ( in certain countries ), the standard gold content in gold shops is of 24 carat gold (90% of gold) , 23 carat (70% of gold) and 22 carat gold (40% of gold). There appears to be a very large difference in carat content. The system of buying and selling of gold is quite apprehensive in certain countries in South East Asia because there is no standard system and the consistency of price, weight and measurement.
Save the receipt because it will be needed when the jewelry is sold again. It is advisable to sell the jewelry at the same place where you purchased the gold, this way you can avoid the possibility that other shops do not have the technology to check the purity of your jewelry.
So what is the value of gold jewelry when sold? Depending on where you sell it, if they use the system at the Pawnshop, then your gold is only rated up to 90% of the buying price of mortgages at the time.
When sold in the gold stores, usually the price cut is 50 cent for each gram purchase price and the value of the gold will be based on the market of the day.
