That depends.  Are you planning to replace, sell or melt it down for scrap value?  The dollar figure will vary according to what you intend to do with the jewellery.

For example, imagine you start with 5 grams of 18ct gold.  After speaking with a designer, you have it hand fashioned into an intricate dress ring.  The replacement cost includes 5 grams of gold and the labour involved.  There will be a profit margin added, and GST.  And during the making process, a gram of gold was lost due to sawing, filing and polishing.

Then you change your mind, and decide to sell it.  Unfortunately, it’s hard to find a buyer with the same taste as yours.  For the customer, what you paid is irrelevant.  Given the choice between buying from you, and choosing from all the jewellery available elsewhere, they would usually need a price incentive.  They agree to pay a “fair market price”.

Afterwards, they want some cash and take the ring to a gold dealer.  The dealer looks at the ring as 4 grams of gold.  He makes no allowance for the beautiful design or the hours of work that went into it.  He also deducts from the value to allow some profit and pay his rent and advertising.

In this example, we have three different values for the exact same ring.  So the purpose of the valuation is critical in preparing a document suitable for your needs.  The first step in jewellery valuation is to determine what the valuation will be used for.

The valuing process begins by assessing the purity of the metal, and confirming that any stamps are correct.  After careful cleaning, any gemstones will be identified and graded.  Precise measurements and weights are recorded.

Next, the method and cost of manufacture are determined.  Other factors, such as antiquity or an important designer/brand name, may have to be considered.  Using local and international pricing, the valuation is calculated, according to the purpose required.

To know what your jewellery is worth, be sure to speak with a qualified gemmologist and valuer.