How to Tell How Much Scrap Gold Is Worth
Determining the worth of scrap gold a straightforward quantitative process. The value of a scrap-gold item depends on it weight, the purity of the gold, and the spot price of gold at time of sale. These figures are simple to find and easy to calculate. The scrap gold can then be sold to a gold refiner, which will charge a percentage for processing and profit.
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Instructions
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Weigh the scrap gold. Do this on a sensitive scale made specifically for jewelry or coins. Record the weight of the scrap gold in troy ounces. This is a standard unit of measure for gold. Troy ounces are slightly heavier than standard ounces used to weigh postage and groceries. One troy ounce equals 1.097 standard ounces.
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Determine the purity of the scrap gold. All scrap gold is combined with other metals to make a gold alloy. The gold purity is the amount of gold contained in the item compared to the other metals. It is measured in karats and listed as a number followed by the letter K. On gold jewelry, the purity is typically stamped near the clasp or on the back. Most gold jewelry is 10K, 14K or 18K gold. Gold coins are made of 22K gold. Most other gold items are made of 10K gold.
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Translate the gold purity into a decimal number. This number is 0.917 for 22K gold, 0.750 for 18K gold, 0.583 for 14K gold, and 0.417 for 10K gold. These are the most common purities for scrap gold. The decimal number for the purity of 24K gold is 0.999, but this is only found in gold bullion. It would never be found in scrap gold.
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Compute the amount of pure gold contained in your item. Multiply the decimal number for the gold purity by the weight of the scrap gold in troy ounces. The result is the quantity of gold in your gold scrap.
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Determine what the scrap gold is worth by multiplying the gold quantity by the spot price of gold. This is the daily price of gold in financial markets around the world. Since this price changes daily, this calculation is only valid on the day you actually sell the scrap gold. The spot price of gold can be found at the site in the "references" section below.
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Tips & Warnings
Gold refiners eagerly buy scrap gold so they can melt it down and recycle it into new gold items. To make this profitable, they pay less than the actual value of the gold. Expect to be offered about 5 percent below the actual gold value of your scrap gold.
References
Resources
- Photo Credit jewelry image by Aleksey Ubozhenko from Fotolia.com
