(I can't even begin to count the number of times that I've sold a
piece, then gone to reinvest in the materials for another one like
it, only to learn that the cost of raw materials now exceeds the
selling price just received. How do you go about ascertaining the
veracity of your prices' tracking, over time?
One way is to weigh the piece after it’s made.Record & save this
figure. Then divide the price of gold by the weight. eg. Gold at
$300/oz, item weighs 10 dwt., total cost of gold in the item $150.
This assumes that the piece is made of all gold . Be sure to add any
fabrication charges you paid for the metal as well.
When the item is sold sometime in the future, assume gold has gone
to $400/oz. Now the gold cost in the item is $200. The percentage of
cost increase is 25% (200 -150 =50, 50/200= .25).
The selling price of the piece should be increased at least 25% of
the current gold cost. Better yet increasing it 25% of the selling
price gives you additional profit on your labor.