Selling your scrap gold can be a quick and easy way to raise a little extra cash in a time where money is running low. As you are probably aware of, gold prices have been well above $1,000 an ounce for several months now. This means that right now would be a good time to cash in and sell your scrap gold at a great price.
Selling scrap gold is not difficult if you are able to understand how scrap gold is valued. You must first understand that scrap gold prices do not take into consideration the craftsmanship involved in creating your jewelry. Scrap gold value is based solely on current price per ounce, weight, and purity. In addition you must subtract approximately 20% of your final scrap gold price for processing and refining cost.
Gold is measured in troy ounces. A troy ounce differs from a standard ounce because it is approximately 31 grams opposed to 28 grams. The weight of gold and silver are usually calculated in troy ounces.
Gold purity is measured in Karats. Gold purity starts at 24k (pure gold) and reduces according to the amount or other metals added to your gold. Almost all jewelry has some other type of metal added in order to increase its strength since pure gold is a soft metal.
In order to calculate how much your scrap gold is worth you must first locate how many karats your jewelry has. This is usually stamped on your jewelry with a 22k, 18k, 14k, 12k, 10k etc. Once you have located your scrap gold purity its time to weigh it.
In order to weigh your jewelry you must first obtain a scale. You can use a simple metallic pocket scale that weighs in grams or a more advanced digital gram scale. These scales can be purchased online or at retailers such as tobacco supply stores. It is more accurate to use a digital scale.
Once you have found your scrap gold weight and purity you can now calculate what your scrap gold is worth. Use the following formula created by Healthy Financial Habits:
Scrap gold value = ((Karats/24) * weight in grams) (Current price per gram) (.80)
The current price per gram can be found by dividing current price per ounce by 31.1034768.
Once you have established an approximate value for your scrap gold you should check around with several buyers to see who will offer you the most money for your gold.
Author: John Zinsky