Has the price of gold tempted you into selling your un-used jewellery? If that’s the case, there are many companies out there looking for ways to get hold of your scrap gold.
Many will ask you to send your pieces to them for a thorough analysis and once they determine the value, they will send you a payment.
But, before you rush to send off your items, you may want to determine the melt-down value yourself.
Image by Garys Famous Car Photos via Flickr
How to Determine the Value of Your Scrap Gold
There are a couple of easy steps you can follow to calculate the worth of your scrap gold. You can also get the latest scrap gold pieces online.
- Start by establishing the quality of the gold items you have. Typically, you will find this stamped directly on the piece. The marking will indicate the karat value of the gold. Traditionally, gold purity is indicated in karats, and this measures gold purity on a scale of 1 – 24. If you want to determine a purity percentage, divide this number by 24. What’s more, your piece could be stamped with a number, like “375” which means the gold content is 37.5%, which is 9 karats.
- Make use of a scale to determine the weight of your gold pieces using grams as a measurement.
- Head online to find the current gold price and calculate the price per gram. The price is normally quoted per troy ounce and once of these ounces equals 31.1 grams. If you are unsure, approach a trusted dealer such as Gold Buyers in Melbourne for assistance.
- Calculate your gold piece’s melt value by multiplying the following factors: the gold’s price per gram, the purity of the piece in a percentage, and the weight of the item which should be measured in grams.
Top Tips to Keep in Mind
- If you think there may be other precious metals mixed with your gold, such as palladium or platinum, it is usually a good idea to calculate their value too and make your sale accordingly.
- Scrap gold dealers are most likely to buy your gold at around 10 – 20 percent less than what it is really worth as they have to process it and turn a profit when reselling it.
- Make use of handy online tools that will do all the calculations for you. All you have to do it enter the purity and weight of the piece.
- Most people prefer to use grams to calculate the value of their scrap gold, but some buyers prefer to use pennyweight instead. There are around 20 pennyweights in a troy ounce and you can substitute 20 for 31.1 in order to calculate pennyweight in your formula.
Make sure you deal with a trustworthy buyer when selling your scrap gold to ensure you get the best possible price.