Why is resale so much lower than retail?

Because resale strips out making, margins and VAT and pays scrap rates for the metal. Only the materials come back, and stones come back at a third.

What does it cost to make a ring?

For a simple solitaire, two to three workshop hours plus materials; the estimate prices it for the country you pick and lists every line.

Does brand really double the price?

For luxury houses, often more. The estimate has a brand factor you can switch on to see it.

Jewellery, gold and diamonds

How jewellery is priced

A ring's shop price is five numbers stacked on top of each other. Once you see them separately you can judge any quote, and you can see why the same ring costs a third to make and a fifth to sell back.

1. Metal at spot

Gold is priced per gram of pure gold, worldwide, every minute. A karat is a purity: 18K is 75% gold, 14K 58.5%, 9K 37.5%. Multiply the piece's grams by purity by today's price per gram and you have the metal value. Makers pay a few percent over spot for casting-grade alloy and lose 5–10% to sprues and polishing; both are small lines in the estimate.

2. Stones at trade prices

Diamonds are priced per carat by size bracket, colour and clarity; coloured stones by type and quality. Trade prices are what a jeweller pays; the retail price of the stone alone is typically 1.3–1.6 × trade, a thinner margin than on metal and making because stones are a commodity anyone can compare.

3. Making

Casting, assembly, stone setting, polishing, rhodium plating and engraving are hours at a workshop rate. Setting is the big variable: a pavé stone takes three to four minutes; a centre stone 25–35; a hand-carved motif well over an hour. Rates range from about $12 an hour in some Asian workshops to $80 in Switzerland, which is why “where” changes the making cost by a factor of five while the metal stays the same.

4. Margins

The maker sells to a shop at about 1.35 × cost (wholesale). The shop sells at 1.8–2 × wholesale for metal and making, less for the stones. Designer brands multiply the whole thing by 1.3–1.5; luxury houses by 2–3. None of this is hidden; it is what pays for the shop, the staff and the risk of stock that does not sell.

5. Tax

VAT or sales tax is added at the end and varies from 0% (Hong Kong, some US states) to 25% (Scandinavia). India charges 3% GST on gold jewellery. Kubikly keeps a table of about 55 countries and shows the rate on every price.

The three prices you actually need

Situation	Headline	What it includes
Buying new	Retail incl. VAT	Everything above
Selling pre-owned	Resale value	Metal at scrap payout (about 85% of spot) + stones at about a third of retail
Having it made	Manufacturing cost	Materials + workshop hours, no margins

The estimate switches between them with one tap, and every line shows whether it came from the spot price, a trade table, your own input or an assumption.

Get a full price breakdown for your piece

Frequently asked

Why is resale so much lower than retail?: Because resale strips out making, margins and VAT and pays scrap rates for the metal. Only the materials come back, and stones come back at a third.
What does it cost to make a ring?: For a simple solitaire, two to three workshop hours plus materials; the estimate prices it for the country you pick and lists every line.
Does brand really double the price?: For luxury houses, often more. The estimate has a brand factor you can switch on to see it.