Now that you have made it through Christmas your wallet may be thinner than you had expected. It seems as if every Christmas we overextend ourselves and spend more than what we budgeted for. You might be looking for a little extra cash to pay your bills this month. Perhaps you are trying to make that car payment or credit card payment. Whatever the reason, Healthy Financial Habits has you covered. We are about to share with you the formula that scrap gold buyers use when estimating how much your gold is worth. The following is not an exact science but it can give you an idea of how much you should expect when you go to sell your scrap gold.
Selling scrap gold is easy as long as you have the tools and the knowledge to complete your transaction. First you must obtain a scale. A simple metal jewelry scale that weighs in grams should do the trick. These can be purchased online or at your local tobacco supply store. Weigh your gold to figure out how many grams it weighs. Second you must figure out how many karats your jewelry is. A karat is a measure of gold purity. Twenty four karat indicates that the gold is 100% pure. Gold is often mixed with other metals to make it stronger and more affordable. Look on your jewelry for a stamp that marks the number of karats it contains. An example of karats is 24k, 22k, 18k, 14k, 12k, or 10k. Finally, you want to know what the current price of gold is. You are able to find this information online by searching for current gold prices.
Now that you have gathered your information and the tools needed to calculate the value of gold you must now plug the numbers into this equation developed by Healthy Financial Habits:
Scrap gold value = ((Karats/24) * weight in grams) (Current price per gram) (.80)
The first part of the formula (Karats/24) * weight in grams determines how much of your gold jewelry is actually pure gold. This number is multiplied by the current gram price of gold. The gram price is simply the current price per ounce divided by 31.10 (the number of grams in one troy ounce of gold). This is different from the 28 grams in a standard ounce.
Finally, true value of your gold is this number times .80. Buyers of scrap gold must take their scraps and have them melted down and processed which cost money. They will usually deduct anywhere from 15% – 20%
Selling gold can be a fun and easy way to make some extra cash in this post holiday season. Be sure to check around with several gold buyers to ensure that you are getting the best price possible. It is never a good idea to sell your gold to the first buyer that you speak with.
Author: Mike Smitt
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BE AWARE of where you choose to sell your gold and silver. If you do some price checking, you’ll find that your local pawn shops and jewelers will only be paying pennies on the dollar for your items. Instead, consider the Silver And Gold Exchange. They have a professional reputation, no complaints, AND PAY THE MOST! They’re a great company to deal with – and very fast!