What is a pennyweight of gold worth?

[lisfisher]

Hello all, recently brought a ring into a jeweler to have something new made from it. Being it's difficult to re-cast 14k gold into something new, what they do is give you credit for your gold towards the purchase of the new custom job.In other words, they will be taking the stones from my ring and mounting them to a new gold band. Anyway, they weighed the ring I brought in at 3.5 pennyweights and are giving me $300.00 credit toward the new ring they will make. I am wondering why they are giving me this much when { from what I am reading on the internet } a pennyweight of gold is worth only between $15.00 to $20.00 per pennyweight, or somewhere in that neighborhood. I'm confused.

 

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[Mackaydon]

This should help you :
Gold Pennyweight Price Calculator
Don,....

 

[Charlie P. (NY)]

1.55517384 g = 1 pennyweight. Gold is at $38.41/g, so $59.73

 

[lisfisher]

Thanks for the info. Still doesn't add up though, where are they getting a $300.00 figure from based on their weight of 3.5 pennyweights?

 

[Mackaydon]

What comes to mind is: "Don't look a gift horse in the mouth."
Take the credit, but don't be blinded by it when the price of the new items is presented to you.
Don....

 

[Backstrap80]

Because you're buying from them. They will not hand you $300 for your gold but can "give you $300 credit" towards their setting they can sell for as little as $400, mark it up to $600-$300 and you're actually getting $100 for your gold. Get it? I'll try another way. I used to sell cars so I understand the trade in.

You want to buy car X, it's price is $24,999 I know this but you don't, when you ask the price I say, I can check the list inside, let's drive it and make sure you like it...
On the test drive I ask if you're trading anything in, yes, you have car X you want $5,000 for, when we get inside, I sit down, tell you my car is $30,000 (I raised it $5000) at this point, I'm gonna do you a Favor! I'm gonna give you $5000 credit on your trade Full price! I lower my price back to 24,999 and say "I'm also gonna save you money on taxes, I'm gonna say we're buying your car for $1, that's why the price is now 24,999 otherwise you'll have to pay tax on the $5000 credit. In the end, I got full price for my car-max profit and "stole, your trade for $1" old school sales lol.

 

[Charlie P. (NY)]

What he said. I have no idea what a jeweler uses for mark-up. Their $300 store credit may represent $120 of employee time and overhead and keeping the lights on (allowing a 60% margin). Their true cost is $120.

Actually sounds like they are giving you a fair shake because they need to make a profit and do more than just absorb costs. It will depend what they sock you for the new ring. Your stones, equivalent value of gold - the difference is their craftsmanship.

 

[lisfisher]

Ok I think I get it. Basically I am giving them a 14k gold ring, with 16 small diamonds. They will then give in turn , a new 14k white gold band, 6x4 gemstone set in the middle, and the 16 diamonds from the old ring set into the new one, around the gemstone. They already gave me the out the door price which is under 700.00 { price includes trade in value }, seems fair to me, especially all the craftsmanship and labor going into the new ring. Highly reputable custom jewelry outfit, been around for many years and some people will not go anywhere else. I've seen their creations and craftsmanship, it's outstanding.

 

[lookindown]

1.55517384 g = 1 pennyweight. Gold is at $38.41/g, so $59.73

That's the price for a pennyweight of PURE gold...his ring is 14k...1 pennyweight of 14k is $34 at current prices.

 

[lookindown]

Ok I think I get it. Basically I am giving them a 14k gold ring, with 16 small diamonds. They will then give in turn , a new 14k white gold band, 6x4 gemstone set in the middle, and the 16 diamonds from the old ring set into the new one, around the gemstone. They already gave me the out the door price which is under 700.00 { price includes trade in value }, seems fair to me, especially all the craftsmanship and labor going into the new ring. Highly reputable custom jewelry outfit, been around for many years and some people will not go anywhere else. I've seen their creations and craftsmanship, it's outstanding.

Scrap value of your ring is $120 dollars.