This article was written by our expert who is surveying the jewelry industry and constantly updating the business plan for a jewelry store.
This guide explains how to estimate metal and gemstone costs for a jewelry store with accuracy and speed.
It uses current market conventions, typical workshop losses, supplier pricing practices, and certification costs to help you quote consistently and protect margins.
If you want to dig deeper and learn more, you can download our business plan for a jewelry store. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our jewelry store financial forecast.
Metal prices are quoted per troy ounce and per gram, with gold around $122.90/g (24K) as of late September 2025, silver around $1.50/g, and platinum around $52.88/g. Gemstone prices vary widely by species and grade, so you must apply grading factors, loss rates, and all process costs to build a defensible estimate.
Update your quotes at least weekly in a jewelry store, track waste (typically 3–7% metals and 5–10% stones), and include casting, setting, polishing, certification, duties, and shipping to avoid margin surprises.
| Cost Component | Typical Range / Reference (Sep 2025) | How to Estimate in a Jewelry Store |
|---|---|---|
| Gold (24K spot) | ~$122.90 per gram | Multiply pure weight × karat purity × spot; add supplier premium and 3–7% loss |
| Silver (spot) | ~$1.50 per gram | Weight × spot; add supplier premium and 3–7% loss |
| Platinum (spot) | ~$52.88 per gram | Weight × spot; add premium for fabrication and 3–7% loss |
| Supplier Markups | ~20%–100% above spot | Negotiate volume tiers; document premiums in your BOM templates |
| Gemstone (quality-dependent) | $100–$100,000+ per carat | Price per carat × carats; adjust for cut, clarity, color, origin, treatment |
| Production Loss | Metals 3–7%; Gems 5–10% | Apply as a line item by process; reclaim scrap and track actuals |
| Process Costs | Casting $3.35–$25+, Setting $10–$40+/stone | Add per-piece labor + finishing + certification to material totals |
What are the current average prices for gold, silver, platinum, and other common jewelry metals?
Use spot prices from late September 2025 as the baseline for your jewelry store estimations.
Gold (24K) was about $122.90/g, silver about $1.50/g, and platinum about $52.88/g; palladium and rhodium are used less often but can be higher per gram. Always price the exact alloy purity used (e.g., 14K, 18K) against the 24K spot benchmark.
Convert your design’s pure metal weight into alloy weight and then apply the supplier premium and expected loss. Keep a dated log of the price you used on each quote to protect margins during reorders.
This is one of the strategies explained in our jewelry store business plan.
For accuracy, reference reputable price trackers and refresh regularly.
How are metal prices quoted, and which units should I use in cost estimates?
Precious metals are quoted in troy ounces (31.1035 g), grams, and kilograms; jewelry stores typically estimate per gram.
Gold is sold by karat (purity), while silver and platinum-group metals are by percent fineness; suppliers often add a fabrication premium to the spot. Always standardize your internal BOMs on grams and specify purity to avoid confusion.
Record: alloy purity, spot source and date, supplier premium, and conversion from pure to alloy weight for every SKU. Align your POS and quoting templates to the same units to eliminate rounding discrepancies.
You’ll find detailed market insights in our jewelry store business plan, updated every quarter.
Grams are the clearest unit for everyday quoting.
What typical markups or extra charges do metal suppliers apply to jewelry stores?
Suppliers commonly add 20%–100% above raw spot depending on metal, volume, and fabrication.
Small orders, rush jobs, and specialty alloys incur higher premiums; bulk contracts and standard alloys reduce them. Ask for tiered price sheets with breakpoints by weight or order value.
Include wire/strip/cast grain fabrication fees, cutting fees, and shipping/insurance in your landed metal cost. Audit invoices quarterly and renegotiate tiers as your volumes grow.
Get expert guidance and actionable steps inside our jewelry store business plan.
Never quote on spot alone—always add the supplier’s premium and your expected loss.
What drives metal price fluctuations, and how often should I update estimates?
Global supply/demand, currency moves, inflation/interest rates, and geopolitical risk drive precious metal volatility.
When volatility is high, jewelry stores should refresh price assumptions daily for gold/platinum work; otherwise weekly is acceptable. Update before finalizing any large quote or accepting a custom deposit.
Implement a price “lock” period on quotes (e.g., 5–7 days) with a clear re-quote clause. Track realized vs. quoted metal costs to calibrate your refresh frequency.
We cover this exact topic in the jewelry store business plan.
Frequent updates reduce underquoting risk.
Which gemstones are most used, and what are their current price ranges per carat?
Diamonds, rubies, sapphires, and emeralds lead fine jewelry; tourmaline, spinel, garnet, tanzanite, opal, and morganite are popular colored stones.
As of 2025 references, top-grade diamonds and premium colored stones can exceed $100,000/ct, while many quality colored stones range $100–$5,000/ct. Prices depend heavily on grade, size, origin, and treatment.
| Gem | Typical Retail/Trade Range per Carat (2025) | Notes for a Jewelry Store |
|---|---|---|
| Diamond | ~$1,000–$100,000+ (grade/size dependent) | Use diamond price lists (e.g., Rapaport) and lab reports; larger, higher-grade stones scale exponentially |
| Ruby | ~$2,000–$25,000+/ct for fine unheated Burma | Origin and treatment status (unheated) command strong premiums; request lab memos |
| Sapphire | ~$800–$10,000+/ct for fine blue; higher for rare origins | Kashmir and unheated stones carry steep premiums; color consistency matters for pairs |
| Emerald | ~$1,000–$15,000+/ct fine; clarity treatment impacts price | Colombian origin often priced higher; disclose oiling/clarity enhancement |
| Tourmaline (incl. Paraíba) | $100–$5,000+/ct; Paraíba can be much higher | Neon blue-green copper-bearing stones are outliers; verify with lab when premium claimed |
| Spinel | $200–$5,000+/ct fine red/cobalt blue | Untreated status is a selling point; strong demand for vivid hues |
| Tanzanite / Garnet / Opal | $100–$3,000+/ct depending on grade | Stability, cutting, and pattern (opal) affect price; prepare for size/calibration needs |
How do cut, clarity, color, and carat weight affect gemstone pricing in practice?
Color and carat drive most of the price, while cut and clarity determine whether a stone reaches its top tier.
In colored stones, the most vivid, saturated, and well-balanced hues command high premiums; in diamonds, color/clarity grades significantly shift per-carat tables. Larger stones with top grades price nonlinearly higher per carat.
Origin and treatment (e.g., unheated ruby/sapphire, low-oil emerald) can multiply value and must be backed by reputable lab reports. Poor cutting that leaks light or hides weight reduces price even if carat weight is the same.
It’s a key part of what we outline in the jewelry store business plan.
Always pair grading documents with your own visual inspection.
Which reliable sources can I use to check up-to-date metal and gemstone prices?
- Metals: LBMA publications on pricing conventions; live trackers such as Goldprice.org and MetalsDaily for spot levels.
- Gemstones: GemGuide (subscription) and Gemval (charts/estimates) for colored stones; Rapaport/RapNet for diamonds and market commentary.
- Macro: TradingEconomics for commodity charts and historicals.
- Local context: National gems & jewelry institutes and trade associations for taxes/duties and market notes.
- Always record the date, source, and exact figure used in each jewelry store quote.
What standard production losses should I factor in for metals and gemstones?
Well-run jewelry workshops typically lose 3–7% of metals and 5–10% of gemstones through casting, filing, sizing, and setting.
Complex designs, high-karat gold, micro-pavé, and fragile stones run higher loss rates; scrap reclamation reduces net loss. Capture actual losses by process to refine your estimates over time.
| Process | Typical Loss in a Jewelry Store | How to Apply in Estimates |
|---|---|---|
| Casting (alloys) | 2–4% sprues/oxidation; more for intricate pieces | Add % to metal requirement; plan for casting tree yields and re-melt cycles |
| Sawing/Filing | 1–2% fine filings | Include as workshop loss; reclaim via sweeps collection contracts |
| Polishing/Finishing | 0.5–1% | Account for abrasive removal; adjust for mirror finishes vs. satin |
| Stone Cutting/Calibration | 5–10% weight removal | Apply to rough-to-finished yield; budget for re-cut risk |
| Stone Setting | 0–3% risk of damage/loss (stone-dependent) | Use higher allowance for brittle stones (opal, emerald); add insurance |
| Sizing/Adjustments | 1–2% metal removal | Estimate range by ring size changes; add bench time |
| Overall Target | Metals 3–7%; Stones 5–10% | Enter as explicit “loss” lines in your jewelry store BOM |
What additional costs beyond raw materials should I include?
- Casting (e.g., ~$3.35–$25+ per item depending on size and complexity)
- Setting (from ~$10–$40+ per stone; more for micro-pavé and invisible settings)
- Polishing/Finishing (shop rates or per-piece bands; rework buffers)
- Certification/Grading (GIA and others: ~$100–$250+ per stone for full reports)
- Packaging, shipping/insurance, and payment fees (add basis points for cards/BNPL)
How do MOQs, bulk discounts, and supplier contracts change unit costs?
Higher volumes reduce per-unit metal premiums and gemstone prices for a jewelry store.
Suppliers often set MOQs (e.g., 10–50 units for simple silver, 100–500+ for custom runs) with tiered discounts; consolidated buys and standard alloys move you to better tiers. Lock in periodic volume contracts for predictable pricing.
Model break-even quantities and compare local vs. overseas production including lead times and rejects. Document negotiated tiers in your ERP/POS for automatic costing.
This is one of the many elements we break down in the jewelry store business plan.
Revisit tiers quarterly as your jewelry store volumes grow.
What import duties, taxes, and shipping costs typically apply for international sourcing?
Duties on jewelry items often run 5–20%, with local VAT/GST added on arrival; Thailand, for example, applies a 20% tariff to many silver jewelry imports plus 7% VAT.
Luxury classifications and excise rules can add cost in some markets; shipping and insurance usually add ~1–5% of material value depending on speed and distance.
| Cost Element | Typical Range / Example | How a Jewelry Store Should Apply It |
|---|---|---|
| Import Duty | ~5%–20% (e.g., 20% for some silver jewelry into Thailand) | Check HS codes; add duty to landed cost per item |
| VAT/GST | Local rate (e.g., Thailand 7% VAT) | Apply on CIF+duty; recover if eligible as input tax |
| Excise/Luxury Taxes | Varies (some markets 10–30%+) | Confirm classification early; disclose in quotes if applicable |
| Shipping | ~0.5%–3.0% of value | Choose service level; insure to replacement value |
| Insurance | ~0.3%–2.0% of value | Cover transit and bench risk for fragile stones |
| Broker/Handling | Flat fees + % of value | Include clearance and documentation charges |
| Total Landed Cost | FOB/CIF + Duty + VAT + Fees | Use a landed-cost calculator in your jewelry store ERP |
What common factors influence gemstone pricing during grading and sourcing?
Beyond the 4Cs, origin, treatment status, and cutting style are decisive for jewelry store pricing.
Premium origins (e.g., Kashmir sapphire, Colombian emerald, Burma ruby) and untreated material can multiply price; calibrated cuts and pairs also command premiums. Large stones with top color/clarity escalate per-carat cost exponentially.
Use reputable labs (GIA and peers) to verify claims and justify pricing to clients. Keep photo and video documentation alongside lab memos in your CRM.
This is one of the strategies explained in our jewelry store business plan.
Clear grading documentation protects both margin and trust.
What are the current average market prices for metals (table view for quoting)?
Use these late-September 2025 reference levels as the quoting baseline in your jewelry store, then add supplier premiums and losses.
Always date your quote and reference the source; recalculate before purchase orders on volatile days.
| Metal | Reference Price | Quoting Notes for a Jewelry Store |
|---|---|---|
| Gold (24K) | ~$122.90 per gram | Convert to 18K/14K by purity; add fabrication premium and 3–7% loss |
| Silver | ~$1.50 per gram | Low base cost; premiums and labor dominate total |
| Platinum | ~$52.88 per gram | Higher melting/bench time; add labor premium in models |
| Palladium | Variable; often high vs. platinum | Check daily; used in white gold alloys and select designs |
| Rhodium (plating) | High and volatile per gram | Budget for periodic replating and bath costs |
| Alloy/Wire/Sheet | Spot + fabrication premium | Use supplier tier sheets; compare per-gram delivered |
| Scrap Offset | Reclaim credit varies | Track sweeps and re-melts to reduce net metal cost |
What common additional costs should be included beyond raw materials (concise list)?
- Design/CAD fees and prototyping (resin/wax prints, molds)
- Bench labor (assembly, soldering, stone setting, finishing)
- Quality control, resizing/adjustments, and rework buffers
- Certification/assay/hallmarking and compliance labeling
- Packaging, merchant fees, marketing content (photo/video), and warranty reserves
What are the best practices for a cost model that handles volatility and long-term planning?
Build a modular BOM that separates spot metals, premiums, losses, gemstones, labor, certification, and landed costs.
Automate data pulls from trusted sources for metals and use subscription tools for diamonds/colored stones; define quote validity windows and hedge big buys with deposits. Run sensitivity tests for ±5–10% spot moves and ±1–2% loss swings.
Track actual vs. estimated by SKU and supplier to refine assumptions; recycle scrap and negotiate tier pricing as volumes rise. Review duties and taxes quarterly for markets you sell into.
This is one of the strategies explained in our jewelry store business plan.
Consistent modeling protects margin and credibility in a jewelry store.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Looking to sharpen pricing and margins for your jewelry store?
Explore our latest resources on startup costs, pricing strategies, and market benchmarks tailored to jewelry retail and manufacturing.
Sources
- LBMA — The Price and OTC Guide
- Goldprice.org — Live Gold Prices
- MetalsDaily — Live Precious Metal Prices
- TradingEconomics — Gold (and metals) data
- Gemval — Gemstone Price Charts
- GIA — Colored Gem Value Factors
- GemGuide — Colored Gemstones Value Factors
- Rapaport — 2025 Gem Market Outlook
- GIT Thailand — Production & Loss Insights
- Thailand Import Duty & VAT Overview
- Average Margins in the Jewelry Business
- How Much Does It Cost to Start a Jewelry Business?
- How to Write a Jewelry Store Business Plan
- Jewelry Pricing: How to Set Profit Margins
- Jewelry Store Profit Margin Benchmarks
- What Is the Profit Margin in the Jewelry Business?
- Jewelry Store Business Plan: Complete Guide
- Jewelry Store Competition Study
- Jewelry Store: Complete Startup Guide
