Expert Reveals How to Spot Real Gold and Understand Hallmarks
A pawnbroker expert shares insights into gold prices, purity, and what to look for when buying gold jewelry.
Gold prices have seen significant fluctuations in 2026, reaching a record high of over $5,000 an ounce earlier in the year before declining. Investor confidence, driven by geopolitical uncertainty including trade disputes, interest rate concerns, and international conflicts, initially propelled the precious metal. Last week marked gold's strongest performance since January, with gold mining stocks also experiencing their most robust five-day period since 2008.
James Constantinou, chief executive and founder of Prestige Pawnbrokers, explained that gold's price is closely linked to the U.S. dollar, with governments and investors often turning to gold as a perceived safe asset during times of economic or political instability. He noted that gold is less volatile than silver and highlighted an emerging demand from technology firms, particularly in artificial intelligence, which use gold in their products.
Identifying Real Gold and Purity
Constantinou advised checking the color, weight, and texture of gold jewelry, and performing a simple magnet test. If the item is magnetic, it is not genuine gold. He cautioned that items can appear gold-plated or be made from non-magnetic base metals such as copper, stainless steel, or aluminum, which would not react to a magnet.
Understanding gold hallmarks is crucial for determining purity. In Britain, gold jewelry is required to be hallmarked, indicating the proportion of gold present. Common hallmarks include:
- 999 for 24-carat (ct) gold (99.9% pure)
- 916 for 22ct gold
- 750 for 18ct gold
- 585 for 14ct gold
The hallmark also signifies the assay office where the piece was verified. Britain has four such offices: Birmingham, Edinburgh, London, and Sheffield. Jewelry may also be marked with 'k' for carat, such as 18k, which corresponds to 750.
Value and Investment Considerations
Cheapest commonly found gold jewelry in Britain is 9ct (37.5% pure), while 22ct is less common. 24ct gold, found mainly in coins and bars, offers the highest purity and is consequently more expensive. Constantinou recommends aiming for 18ct or 22ct gold for a better balance of gold content and affordability.
The weight of the gold jewelry directly impacts its value, with more weight at the same purity equating to more gold. Purity significantly affects value; for instance, 10 grams of 18ct gold (75% pure) contains considerably more gold than 10 grams of 9ct gold (37.5% pure).
For investment purposes, pure gold bars are an option. With jewelry, simpler designs such as bangles, bracelets, chains, and rings are often recommended for easier value assessment. While gold price and purity are primary factors, design, craftsmanship, condition, rarity, and market demand also influence a piece's worth. When selling, the price obtained may not match the retail purchase price.
Older gold jewelry's value is not inherently higher than new pieces. Its worth still depends on purity, weight, and the current gold price, but rare, antique, or designer pieces can command higher prices. When purchasing vintage items, checking the hallmark, maker, purity, weight, and condition—including any repairs, missing stones, or damage—is essential. The quality of any accompanying diamonds or gemstones should also be verified.
Designer brands like Cartier, Van Cleef & Arpels, or Bulgari can add significant value due to brand recognition. For example, Cartier's 18ct Yellow Gold Love Bracelet has seen price increases in the pre-loved market, and Chanel has also raised prices on some of its fine jewelry. However, the overall value of a designer piece also relies on its specific design, age, rarity, condition, and popularity, with classic designs often being more desirable.