How to check if your gold jewellery is real and what all the hallmarks mean... pawnbroker expert reveals all the tricks of the trade

The price of gold has experienced major swings in 2026 after hitting a record high of more than $5,000 an ounce earlier in the year, but then dropping. 

The past year's gold frenzy was initially driven by investors looking for a safe place to park their money during geopolitical uncertainty, starting with the Trump tariffs, through interest-rate uncertainty and the outbreak of war in the Middle East. 

Last week was the precious metal's best week since January, while gold mining stocks had their strongest five-day run since 2008. 

Like any commodity, the price of gold can go up and down, but investors often turn to conservative commodities like gold in volatile times. 

James Constantinou, chief executive and founder of Prestige Pawnbrokers, explains to This is Money why gold's gone up in price, how gold jewellery hallmarks work, what gold purity is and what sort of gold jewellery is the best to buy. 

What to know: Hallmarks and purity matter when you are buying gold jewellery 

Join the discussion

Should gold jewellery be valued more for its craftsmanship or its purity and weight?

What's your view?

Why have gold prices gone up this year?

The price of gold is about $1,000 an ounce higher than it was a year ago, though prices have eased in the past week. 

Gold prices generally rise in times of economic or political uncertainty and major events, like the war in Iran. 

Constantinou said: 'Gold is connected to the US dollar and governments and investors often turn to gold as it is viewed as a safe asset.'

Gold is less volatile than silver, Constantinou said. He added: 'There's also increasing demand for gold from tech firms. Artificial intelligence companies often use gold in their products. This is going to be a major growth area.'

How do you know when gold jewellery is real gold?

Look at the colour, weight and texture of the gold jewellery. Also watch out if the jewellery is magnetic. If it is magnetic, it is not real gold. 

An item could also look like pure gold but actually be made using another non-magnetic base metal like copper, stainless steel, or aluminium. These base metals would not be magnetic. 

Just because a piece of jewellery is gold in appearance does not mean it is real gold. It could be gold-plated or another metal. 

How do gold hallmarks work? And what's gold purity?

Constantinou said: 'Gold jewellery in Britain has to be hallmarked and there are different numbers to look out for depending on the purity. 

'Gold purity is essentially how much gold there is contained in the piece of jewellery.

'999 is 23 carat (ct), 916 is 22ct, 750 is 18ct and 585 is 14ct. The higher the ct, the more gold there is in the piece'

He added: 'The hallmark tells us the purity and also where the piece has been assayed. There are four assay offices in Britain: Birmingham, Edinburgh, London and Sheffield.'

You might also see 18k rather than 750 stamped on a piece of jewellery. Whatever the hallmark says it still needs to be checked and verified. 

What's the cheapest and most expensive gold jewellery to buy? 

The cheapest gold jewellery you will commonly find in Britain is 9ct, which is 37.5 per cent pure gold. You can find this level of gold in all sorts of jewellery.

At the more expensive end there is 22ct gold jewellery, although it is not as common here in Britain. 

Constantinou added: 'Then there's 24ct, which is 999 purity and is mainly found in gold coins and bars. It's more expensive because you're getting higher purity of gold.

'You should go for the highest ct you can afford, ideally 18ct or 22ct.

'The most affordable options have lower amounts of gold in them.'

James Constantinou is the chief executive and founder of Prestige Pawnbrokers

Does weight matter?

The value of your gold jewellery will partly depend on its weight. 

Constantinou said: 'If you've got more weight at the same purity, you've got more gold.

'Purity makes a big difference too. If you've got 10 grams of 9ct gold, that's 37.5 per cent pure gold. If you've got 10 grams of 18ct, that's 75 per cent pure gold, so the 18ct piece contains considerably more gold despite them weighing exactly the same.' 

Are simple pieces of gold jewellery best as a long-term investment?

Constantinou said: 'If you can invest in a pure gold bar, that's one option. With jewellery, I'd look at simple designs such as bangles, bracelets, chains and rings because it's easier to establish and understand the value of the gold in the piece.'

How is gold jewellery's value determined?

The gold price and purity are important, but there are other factors that determine what a piece is worth.

Design, craftsmanship and condition matter when buying gold jewellery and viewing it as a long-term investment. 

You also have to look at the condition, whether it's set with gemstones or diamonds, how rare the piece is and the demand for it. And if you're selling, you have to remember you won't necessarily get the same price somebody would pay to buy it.

Is older gold jewellery worth more than new jewellery?

Constantinou said: 'Not necessarily. Older jewellery can be worth more, but it depends entirely on what the piece is.

'The gold value is still affected by its purity, weight and the current gold price. But if it's rare, antique or made by somebody well-known, that can make a difference too.

'When you're buying older jewellery, look at the hallmark, who made it, the purity and the weight. It's also important to check whether it's had any repairs, whether there are missing stones or any damage.

'If it has diamonds or gemstones, look at their quality and make sure they're genuine. If it's an antique piece, the condition, maker's mark and age are important.'

Does a designer brand make gold jewellery more valuable? 

The brand can add value to a piece. Something from Cartier, Van Cleef & Arpels or Bulgari can be worth more than a standard jewellery piece because of the name behind it.

Constantinou said: 'We've seen high-end luxury jewellery become the go-to investment in the market recently, and some of the price increases show exactly why. Cartier's 18ct Yellow Gold Love Bracelet has gone from around £5,500 to £6,000 in the pre-loved market in the past year.

'Chanel has also increased prices across some of its fine jewellery, with one 18ct yellow gold and diamond Coco Crush ring rising from £14,400 in January to £15,800, an increase of almost 10 per cent.'

He added: 'But it also depends on the individual piece, its design, age, rarity and condition, how popular it is and whether it's a classic design people immediately recognise.

'If you're looking at it as an investment, the gold value and the brand value are both important, alongside the purity, weight and condition.'

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