Calculating the Value of Scrap Gold
The spot gold price is really a poor indicator of the value of gold. Look around and you can see that gold sells for much more than the spot price of gold (which is only the paper price of gold on the market after all and is not really gold).
Scrap gold is really any gold that is not wanted or which can be turned into cash or profit so scrap gold can include the following therefore:
Gold fillings (dental)
In fact anything that is made of gold or has gold in it.
Before you sell scrap gold you should know exactly how much actual gold you have and how much it is worth. Then you can ensure that you are getting the right price for your gold.
There is a secret formula which scrap gold dealers use and when calculating the value of scrap gold and which is shown here.
These are a the steps you would take.
Separate the gold you have into their various karat fineness. Some will be 10 karat, some 14 karat, 18 karat, 22 karat or 24 karat, the purest. You might need to examine detailed numbers stamped on the gold or if there are none then have the gold examined or tested by a reputable dealer. You should keep in mind that some testing may involve the loss of some gold so this is only recommended where you have a decent amount. If it is just a ring or small chain it may not be worthwhile having it tested. It is possible that some gold is simply gold plated and therefore would hardly be worth while selling as gold.
Find out the value of each group by using the gram scale. If you are only able to weigh by the ounce then you will need to convert to grams by multiplying by 28.35 For example. 2 oz. Equals 2 x 28.35 which equals 56.7 grams. You can find charts to do this conversion. Fine gold is also measured in troy ounces. One troy ounce is equal to 31.1 grams of gold. This is all pure gold you understand.
Any gold coins should be looked at separately. They can have what is called a numismatic value. That is to say, the rarity, age, condition and other factors can have a bearing on the value of the gold coin. In some cases the gold coin value as a rare gold coin can be much more than the value of the gold it contains.
Once you have established that your gold is only worth the value of gold, get today’s price per gram, you can do this from the charts on this website. Multiply by the fineness of the gold. In other words divide the karat by 24, then multiply that number by today’s gold price per gram. For example with your 10 karat gold and the current price was 30 dollars a gram then the price of your 10 karat scrap gold would be $30 x .4167 = $12.501 per gram.
So you simply multiply the price per gram by the weight in grams. If you have 10 grams of 10KT gold and you calculated the price at $12.06 per gram, then your scrap gold is worth 10 x $12.06 = $120.59.
10KT = 10/24 = .4167
14KT = 14/24 = .5833
18KT = 18/24 = .750
Here are some more examples:
If you had 5.0 grams of 14KT scrap and gold was $900.00, per ounce for example, then $900.00 divided by 31.1 equals $28.9389 multiplied by .5833 (14KT) equals $16.88 per gram. $16.88 multiplied by 5.0 grams equals $84.40.
Now if you had 15.3 grams of 10KT gold scrap. $900 divided by 31.1 equals $28.9389 multiplied by .4167 (10KT) equals $12.06 per gram. $12.06 multiplied by 15.3 grams equals $184.52.
If you practice it a few times you can get quite good at it.
Most people use grams for these calculation but many scrap gold buyers use pennyweight (DWT) instead of grams. There are 20 pennyweights in a troy ounce. So in this case you can substitute 20 for 31.1 to calculate pennyweight in our formula. You can also multiply a pennyweight by 1.555 to get an equivalent gram weight or divide a gram weight by the same 1.555 to get pennyweight.
Scrap gold dealers generally will not give you top value for gold. However in these uncertain times many are looking for gold themselves so are likely to pay for gold and usual If you are selling scrap gold you might be better off selling privately or by auction, depending on the amount you have to sell.
Also one should be aware that, in some cases, there are other precious metals mixed with the gold and some of these, such as platinum, would be worth more than the gold.
In all cases, however, calculating the scrap value of gold or any precious metal for that matter, is an important step when it comes to selling scrap gold.