With the price of gold teetering past the $1700 per ounce mark, there are many people looking to cash in their old treasures. Besides being inundated with ads screaming ‘Cash 4 Gold’ and promises to receive substantial amounts of money for old gold jewelry, its not unusual to stop and think, humm maybe i might have a few gold pieces worth cashing in.
However, before you bring in your gold jewelry, dental fillings, nuggets, or bars to a scrap gold dealer or send it in by mail, you should know exactly what it’s estimated value is to be reassured you are receiving a fair price. Most scrap gold dealers try keep the calculation a secret, but in this article i’ve provided you all the information you need to figure out the value of your scrap gold by yourself.
Here’s what you’ll need to get you started:
- Scrap gold
- Internet and/or newspaper report of gold prices
- Acid and stone or gold verification pen for testing the gold yourself
- Calculator for conversions and calculations
First, seperate all gold by karat number indicated, any items your unsure of, use the acid or other means to verify.
Second, determine the gram weight of your gold.
Divide today’s gold price in dollars per ounce by 31.1 to get today’s gold price per gram. For example, if today’s price per ounce is USD$1,700, then today’s price per gram is USD$54.67 (USD$1,700/31.1).
Multiply by the fineness of the gold. For each group of gold, divide the karat by 24, then multiply that number by today’s gold price per gram. For example, if you have 10K gold and the current price of gold is USD$1,700 per ounce, or USD$54.67 per gram ($1,700/31.1), then the price of your scrap gold is USD$54.67 x .4167 = USD$22.78 per gram.
- 10k = 10/24 = .4167
- 14k = 14/24 = .5833
- 18k = 18/24 = .750
- 22k = 22/24 = .9167
Multiply the price per gram by the weight in grams. If you have 10 grams of 10K gold and you calculated the price at USD$22.78 per gram, then your scrap gold is worth 10 x USD$22.78 = USD$227.78.
- Scrap gold dealers such as pawn shops or storefronts with signs such as “we buy gold” will likely buy the gold from you at a discount of 30 to 60 percent less than it’s actually worth, since they must process it and still turn a profit from reselling it. With today’s high margins, its not recommended to sell to these buyers since you can find places that will pay you a high percentage of your gold’s true value while still making profit. Don’t forget to shop your items around to get the highest price available.
- Gold refiners usually pay 90 to 98 percent, and most reputable refiners have a website stating the actual percentages offered. However, many do have a minimum buy weight, which is usually around 3 to 5 ounces.
- Never sell diamonds or gemstones to gold buyers. Make them remove the stones from the jewelry and give them to you; never let the item out of your sight. Do not send diamonds or gemstones to refiners. You definitely will not be compensated for them, and they most likely won’t be returned. A reputable jeweler is recommended for removal and appraisal of such items before selling the rest for scrap.
- For a list of reputable dealers in the USA, see the United States Mint’s page on recommended coin and gold buyers.
Hope this was helpful and remember, vigilance is paramount when dealing with valuable goods.
Live, Life, Lamour