How to Determine the Value of Scrap Gold

Determine the value of scrap gold before you sell.

Selling scrap gold is a great way to earn a few dollars for old and mismatched jewelry that you might otherwise throw away. But, before you sell, you should take the time to learn how to determine the value of scrap gold to ensure that you get a fair price for the items you sell. Here's a quick primer on how to determine the value of scrap gold:

Instructions

1. First, separate your gold pieces according to their level of karat fineness. Do this by looking for the jeweler's stamp that tells you the karat fineness of the piece. Most pieces of jewelry are 10k, 14k, or 18k gold. The higher the number of karats, the more gold the piece contains, and therefore the more value it has for sale as scrap gold.

2. Look up the current price of gold. Gold is priced per "troy ounce." A troy ounce is a unit of measure equal to 31.1 grams. The price of gold varies from day to day, and even throughout a single day, so you'll want to make sure you're using the current price to determine the value of scrap gold. As of the date of this article, gold prices are fluctuating near $1,100 per troy ounce.

3. Next, you'll need to convert the price of gold per troy ounce to the price per gram. Do this by dividing the gold price by 31.1. For example, if the price of gold is $1,100 per troy ounce, divide this figure by 31.1 grams ($1,100/31.1 grams = $35.37 per gram).

4. The next step in determining the value of scrap gold is to weigh your gold in groupings according to its karat fineness. You can use a postal scale or a gram scale for this purpose. If you are only able to weigh your gold in ounces, you will need to convert the value to grams.

5. Next, you'll need to determine how many grams of gold each grouping contains. Gold jewelry is mixed with other metals to strengthen and reinforce it, since pure gold is too soft and pliable to be worn as jewelry. To determine the actual number of grams of gold contained in your pieces, multiply each grouping by the following factors:

   10k - multiply by .4167
   14k - multiply by .5833
   18k - multiply by .7500

   For example, 10 grams of 10k gold really only contains 4.167 grams of pure gold (10g x .4167).

   Another way to think of this is that 10k gold is really only 41.67% gold, while 14k is 58.33% gold, and 18k gold is 75% gold.

6. Once you've determined how many grams of pure gold are present in each grouping of scrap gold, add the values together and multiply the total by the price of gold per gram.

   Here's an example to help you see how this works. Let's say you have 10 grams of each of 10k, 14k, and 18k gold. Determine the total amount of pure gold present as follows:

   For 10k gold: 10 grams x .4167 = 4.167 grams of pure gold
   For 14k gold: 10 grams x .5833 = 5.833 grams of pure gold
   For 18k gold: 10 grams x .7500 - 7.500 grams of pure gold

   Add these together: 4.167 + 5.833 + 7.500 = 17.5 grams of pure gold

   To determine the value of your scrap gold, multiply this total weight of pure gold by the current price of gold in grams, which we've set at $35.37 for this example:

   17.5 x $35.37 = $618.98

Tips & Warnings

• While you can earn some cash by selling your broken and mismatched jewelry as scrap gold, you may want to sell intact gold jewelry to a reputable jewelry dealer, antique shop, or even list it for sale on an auction website or a site like craigslist. Intact pieces are generally worth more than the value of scrap gold, since workmanship is included in its value.