How to Calculate the Price of Scrap Gold

Photo by 401(K) 2012 via Flickr

DO NOT SELL YOUR GOLD BEFORE YOU KNOW WHAT IT IS WORTH!

If you have any scrap gold, you can sell it, but for how much? Of course you want the most you can get, and the only way to do that is figure out what you have BEFORE you try to sell it. All the information you need to calculate what your scrap is worth is right here.

We all have known that the gold price always increases over time. The value of gold jewelry is typically based on two factors: the value of gold and the artistic value of the jewelry. On today's post, we will be calculating the scrap value of your gold jewelry.

"Scrap value means the buyer is buying your gold for the value of the metal alone - the retail value allows you to factor in the aesthetic value of your gold pieces so that you can sell gold for cash at a higher price."

You will need:

Jeweler's Loupe (or Magnifying Glass)

Gold Testing Kit (optional)

Any scale that can weigh by the gram

Calculator

Gold

Step 1: Determine the Karat (Purity) of the Gold

Gold jewelry is made in different purities. You will need to know what karat your gold is. Gold jewelry is usually stamped with the karat of the gold. Use a magnifying glass to decipher the karat number on each piece. If your scrap gold is not stamped with a karat number, you may want a gold testing kit to confirm purity.

We will use 10k 14k 18k and 22k as our examples on how to calculate the value. 24k is pure gold.

10k = 10/24 = .4167  (10k gold is 41.7% pure gold)
14k = 14/24 = .5833 (14k gold is 58.3% pure gold)
18k = 18/24 = .750 (18k gold is 75% pure gold)
22k = 22/24 = .9167 (22k gold is 91.67% pure gold)

Related Post: How Can I Tell If Gold is Real

Step 2: Determine the Gram Weight of your Gold.

Get a scale to weigh your scrap gold. Be sure to weigh your items in groups with the same karat value. If your scale weighs in ounces, convert it to grams.

1 oz = 28.3495231g

Step 3: Determine the Current Price of Gold.

You can search this in the internet or in your local newspaper (or at the sidebar of this blog!) You have to realize that the price of gold changes hourly according to supply and demand. Gold is valued per troy ounce. To get today's gold price per gram, divide today's gold price in dollars per ounce by 31.1.

For example, if today's price per ounce is USD$1600, then today's price per gram is USD$51.45 (USD$1,600/31.1).

Step 4: Multiply Karat (Purity) of the Gold by the Weight in Grams by the Current Price of Gold in Grams.

Example 1:

If your have 5 grams of 18K scrap gold, and the current price of gold is $1600, then the value of your gold is $192.94. (See computation below)

Karat Purity of 18K = 0.750

Weight in Grams = 5g

Current Price of Gold ($1600/31.1) = $51.45

0.750 x 5g x $51.45 = $192.94

Example 2:

If your have 12.1 grams of 14K scrap gold, and the current price of gold is $1600, then the value of your gold is $363.14. (See computation below)

Karat Purity of 14K = 0.5833

Weight in Grams = 12.1g

Current Price of Gold ($1600/31.1) = $51.45

0.5833 x 12.1g x $51.45 = $363.14

How to Calculate Scrap Gold Prices on Howcast

Just a Tip...

There is usually a cost associated with refining your gold and operating a business so you will not get the full value of your gold. But if you take your gold to a reputable buyer that strictly specializes in buying gold you  should expect to get at least 80% to 85%. If you are offered less than this it is not a legitimate offer. Also, never sell diamonds or gemstones to gold buyers. Remove the stones from the jewelry and sell them to gemstone buyers.