How to calculate the current scrap gold prices to get the most cash for your gold
It is not surprising that people are selling their scrap gold and seeking information on scrap gold prices given that gold prices are greater than ever and the economy is still in horrible shape.
What is gold scrap?
Scrap gold is often made up of items like broken gold chains and bracelets, undesired pendants, single earrings, gold fillings and crowns from previous dental work, and so on. Few of us will have more than a few hundred dollars’ worth of scrap gold in our houses. When times are tight, any additional cash is helpful. When times are tight, any additional cash is helpful.
So how can you figure out how much your scrap gold is worth? And much cash for gold can you expect?
First, convert the current gold price from ounces to grams.
The selling and purchase of scrap gold is typically done in grams, despite the fact that the price of gold is typically indicated in Troy ounces.
- Simply divide the price per ounce by 31.1 to get the price per gram.
- As a result, if the price of gold is $1,000 per ounce today, for instance, the price per gram is $1,000/31.1, or $32.15 per gram.
The second step is to separate your scrap gold into heaps of the same karat.
- If you look attentively, each piece of gold you own will have one of the following karat numbers: 10-K, 14-K, or 18-K. You might need a magnifying glass for this.
- The amount of pure gold will vary depending on the karat number, with 18-karat gold having a higher pure gold percentage.
Step 3: Karat-wise weigh the various groups (karat)
Put one pile of 14 carat gold, for instance, on the scales and weigh it. It’s ideal if you have a set of jeweler’s scales. If not, mail-weight scales will provide you with a relatively accurate result.
Suppose you possess 10 grams of 14-karat gold.
Step Four, determine the individual gold value of each pile.
Remember that since 14 karat gold is not pure gold, you cannot simply multiply the weight of your 14 karat gold by the current price of gold per gram.
Here is the equation to use, where 24 stands for 24 carat, or pure gold.
Using the 14 karat gold in our earlier example:
14K = 14/24 = 0.5833
In other words, 14 karat gold is slightly more expensive than pure gold.
The formula for 10 karat gold would be:
10K = 10/24 = 0.4167
Step Five: Complete the math to determine how much your scrap gold is worth.
Using the same example, a gram of pure gold is worth $32.15, a gram of 14-karat gold is worth 32.15 x 0.5833, and a gram of gold weighs 10 grams.
Thus, 32.15 x 0.5833 x 10 equals 187.53.
You have $187.53 worth of scrap gold in that “useless” junk.
After you arrive at the cash for gold dealer
First of all, don’t assume they will believe you when you say you have high quality gold or that what you have is real gold. They will perform their own measurements and weighing to ensure that all of your gold is genuine solid gold rather than just plating.
Additionally, they won’t provide you all of the value. They will take anything between 10% and 20% of the worth as their commission because they need to make a living.
However, if you perform your own calculations beforehand, you’ll at least know what to anticipate and be able to walk away from any dealer who seems to be taking advantage of you.