Finding out the value of scrap gold is not hard at all. In fact, it is quite simple. One of the first and most important things that you should understand about learning how to value scrap gold, is the fact that the price of gold that you see on the cable financial channels is only a guideline. You are simply not going to get paid that much for an ounce of gold. But don’t worry. I will point you in the right direction so you get the most money for your gold.
Why won’t you get paid the same price for scrap gold as you see on the cable financial channels?
Here’s why. The price that you see on TV is for pure gold in a marketable form on the open market. A marketable form of gold would be gold coins, ingots or bars etc. Scrap gold that the average person, like us, wants to sell simply will not be in this form.
First of all, you should not confuse yourself with all of the complications in dealing with troy ounces. Don’t bother with troy ounces; they are just too confusing. The best and least confusing way to deal with valuing gold is to use grams. Most Americans have trouble in dealing with and thinking in grams, but it is just the simplest way to go. Most modern kitchen scales will display measurements in grams, so you have nothing to worry about.
The Spot Price of Gold
The spot price of gold is the same price as you see on the financial channels. But the best way to find the spot price of gold in grams is just to Google it. You will find it quickly and this will give you a starting point for valuing your scrap jewelry.
Determining the Purity of Your Gold
The next thing that you should do to figure out the value of your scrap gold jewelry is to determine the purity of your gold. Gold jewelry will have a hallmark or karat stamp on it somewhere. For example 18K gold is 75% pure. If the spot price of gold was $30 dollars a gram and you had one gram of 18K gold, then it would be worth $22.50 on the open market. That’s.75 X 30 = 22.50.
The short answer is NO. When you sell your scrap gold jewelry, the inherent value that it has is its melt value. In my experience, the melt value of scrap gold is typically between 50% and 70% of market value. The trick to getting the most money for your scrap jewelry, if you decide to sell it, is to find a gold buyer that offers a high percentage of the spot price.