How to Price Scrap Gold

Cashing in scrap gold

When gold prices soar, eager investors look for ways to take advantage of the situation. There is scrap gold in countless places. If you rummage through most homes, you will find some. Much of it is in places you would least expect gold to be. If you gather it together and sell it as scrap gold, you can make some money.

Things You'll Need

• Scrap gold
• Computer with Internet connection

Instructions

1. Find the current spot price for gold. A search of the Internet will provide this information. The spot price is what gold sells for in financial markets around the world on that day. The price changes every day. The spot price of gold is usually stated in dollars per ounce. This is a good starting point when you are trying to price scrap gold.

2. Gather up all your scrap gold. This is found in old jewelry, flatware, nuggets, fillings and coins. Before you plan to sell gold coins for scrap, be sure they don't have more value as coins. A reputable coin dealer can tell you. Scrap gold can also be found in computer components and high-end stereo cable tips. Track down all your scrap gold and put it in a box.

3. Weigh the box then subtract the weight of the box itself. This is what all your scrap weighs. Keep in mind that most the items containing gold scrap is made up of substances other than gold. Fourteen-karat gold is only .585 fine. That's just a little more than half gold. When you sell your scrap gold, you will only be paid for the gold in it. The other stuff just melts away when the gold is reclaimed.

4. Multiply the weight of your gold scrap by the current spot price of gold. Now cut that number in half. The result is an extremely rough estimate of what you might be paid for the gold content of your scrap. Understand that the gold content might be less than you estimate and you will probably get less than that when you sell.

5. Find a gold scrap buyer. There are many on the Internet. Look for one with a good reputation that has been in business for a long time. The buyer will send you an envelope for your scrap gold. You send it back insured. They will make you an offer based on the gold content of your gold scrap. Some companies offer you the current spot price of gold minus a transaction fee. Others will offer you a percentage of the current spot price of gold with no fee. This is usually 90 percent to 95 percent of the current spot price of gold.

Tips & Warnings

• Shop around until you find a scrap gold price you like. If you don't like what a gold scrap buyer is offering, the buyer will send your shipment back to you. Feel free to try several gold scrap buyers before deciding to sell. Different buyers estimate the gold content of your scrap differently. They may have vastly differing offers for the same gold scrap.

Resources

• Read this Article in Spanish
• GoldPrice.org: Current Price of Gold