When you buy jewellery from a retailer, you pay for the gold, the workmanship and profits for wholesalers and retailers. All these factors are used to make up the retail price.

Typically retail jewellers will mark up prices by a minimum of at least 2.5 times the actual value of the gold content. In certain circumstances they may mark up the price of an item by ten times or more of the actual value of the gold. Jewellers may offer more for your gold, but this is normally only if you buy other goods from them i.e. Trade in.

They will make significantly more profit on the sale of the new jewellery to you due to their mark up on these items.

Insurance valuations of your jewellery is not primarily based on the gold content. Insurers valuations are based on the cost of replacing your jewellery with an equivalent piece of jewellery.