Buying fine jewelry is more enjoyable when you’re knowledgeable about precious metals. Whether you’re a first-time buyer or have dabbled before, understanding a metal’s composition, features, and value—now and in the future—empowers you to make a sound investment. Here’s what you need to know.

Types of Metal

Gold

Commonly used in jewelry and as currency, gold is durable and easy to shape. Gold items are often metal blends because pure gold is too soft to use on its own. It’s measured in karats to indicate how much pure gold it contains: 9-karat gold is the least pure, and 24-karat is the most. The other metals affect the color: 24-karat gold is yellow, and the pigment becomes more muted the lower the karat. Rose gold has a high concentration of copper in the metal mix.

Silver

Silver also varies in fineness. Every piece of precious metal has a hallmark—a stamp indicating the grade of its metal. Sterling silver is the standard grade at 925 parts silver to every 1,000, so the hallmark stamp would say 925. Fine silver is the highest grade at 999. Sterling silver is a commonly used metal that’s found in appliances, jewelry, and decorative items. Air exposure turns it black, but you can remove this through polishing.

Platinum

Platinum is a rare, white metal and the most expensive precious metal. It’s extremely tough, much heavier than the others, and a popular choice for engagement and wedding rings and car parts. As with silver and gold, it comes in different grades of fineness, but these aren’t communicated in the same way, so check the hallmark to ensure you’re getting the highest quality. The most common grade is 950, but you may also see 850, 900, and 999 hallmarks.

Buying & Selling Precious Metals

Precious metals are priced by weight, and prices fluctuate like with regular currency. Currently, gold is $1,576.30 per ounce, silver is $17.80 per ounce, and platinum is $991.20 per ounce. Demand causes prices to rise and fall, and all three metals trade around the clock.

Gold prices depend on market supply. When extensive collections go on sale, the price per ounce drops. Silver has a lot of practical applications, so new product launches and increased production influence price. Platinum is also a functional metal, and prices are most affected by the car industry.

The purest way to invest in precious metals is to buy the metal itself, which is called bullion. If you have a precious metal to sell, many jewelry stores buy gold and offer a fair price based on the current market value.

Smith Jewelry & Coins in St. Charles County, MO, is a family-owned jewelry store providing knowledgeable advice, beautiful jewels, and precious metals to residents. They sell and buy jewelry and precious metals and are renowned for fair pricing and high-quality merchandise. Stop by their shop today, call and speak to a team member at (636) 441-6789, or visit their website to see for yourself.