3 Things To Know About Estimating The Value Of Your Scrap Gold

Money is tight, and the value of gold is high. You may have jewelry or other items made of gold that are of no use to you and be tempted to sell them for their gold content. However, before you take your gold to a buyer, you should estimate its value. In this way, you will know how good of a deal you are getting, and will avoid being taken advantage of due to ignorance. The following are a few important things to know about the scrap gold business.

Rarely is anything made from pure gold

Gold is a soft metal, so when it is used for jewelry or other things, it is blended with another metal to create a durable metal. It is easy to calculate the percentage of the gold in your scrap jewelry. You only need to understand that gold is measured in karats, and pure gold is 24 karats. If your gold is stamped as 18k, then this means it is 75 percent gold (18/24 = .75).

Weighing your gold

Everyone knows that there are 16 ounces in a pound, but what you may not be aware of is that gold is not measured in the typical unit used by Americans. Gold is measured in Troy ounces, and you must know the difference to accurately estimate the value of your gold. If you can find a scale that weighs in Troy ounces, your work is done. Otherwise, you will need to convert from standard ounces to Troy ounces. Just multiply your standard ounces on your scale by 0.9114582357508 to get the gold's weight in Troy ounces.

Calculate the gold's total value

Once you know the weight of the gold, simply multiply by the percent of gold content. This gold can then be multiplied by the current spot price of gold that is quoted in daily newspapers everywhere. Keep in mind, a gold dealer will not offer full value. They need to make a profit. It is common for a reputable dealer to offer from 70 to 80 percent of the scrap gold's full value.

With gold selling at attractively high prices, there are many buyers of gold. They can be found in many areas of business, especially with businesses that have not traditionally been involved in the buying of gold. Some of these businesses are reputable, while others are more of a gamble. If you take the time to estimate the value of your gold, you will have a better chance of getting the best price available.