When looking at gold jewellery, you might consider selling some unwanted pieces as scrap gold to gold buyers. Yet, many confuse the term scrap gold and do not know what it means. When looking at scrap gold, it refers to melting it down when sent to refiners for recycling.
Hence, no matter what item you have, from jewellery to bars, the object contains gold and will be reprocessed. For instance, if you take your broken gold jewellery pieces to a gold dealer. They will buy it from you to send to a refinery where it is melted down.
Thus, you will receive an offer to repurchase it as scrap gold. But how do gold dealers determine the scrap gold value? The dealer often weighs it in grams on a digital scale when you buy or sell scrap gold.
But another critical factor is the purity of the gold measured in karats. So, an easy sum to convert karats into a percentage is to divide the karat number by 24. But you can typically see the karat available on the hallmark of a ring.
Thus, if you have a 14k ring divided by gold purity of 24, your item has 58.3% pure gold. Hence, the value of your scrap gold depends on its purity and weight. Therefore, if you know the price of gold per unit of weight and have the karat of each piece, you can estimate when selling your scrap gold.
For example, at the moment, the price of gold per gram is $55, and if your piece of jewellery’s gold purity is 18k and weighs 100grams, the actual content is 75% or 75 grams of pure gold. So all you need to do is to multiply the 75 grams by $55 to see what you can expect when selling your gold jewellery.
However, it does not mean it will be the price you will get for your gold or other precious metals. Thus, gold buyers only care about the metal value, not your jewellery piece’s design. Furthermore, gold dealers vary in price as it all depends on what they plan to do with it when reselling. Therefore, we recommend you do some research to look at various options when receiving offers.
Yet, the rule remains that most scrap gold buyers buy back gold at 80% to 90% of the precious metals market price. But, of course, this also depends on how much gold you have available to sell. Still, how do you know it is a good offer?
For instance, if a gold dealer says they will present you with $23 for a 14-karat ring, the price is $14.99, which is $23/1.555 grams. Yet, if one gram of 14 karat gold only has 0.583 grams of gold purity, the price is $25.37 meaning $14.79/0.583 grams.
You can compare it with the gold market price gram to know if it is a good deal. Another example is if the gold gram price is $38.58 and the purchase price is $25.37 per gram, you are receiving about 65% of the gold market price, which is an okay deal.
So, now that you know how scrap gold values are evaluated and with the gold market price at a high. Why not head to a gold buyers shop to have your gold evaluated to receive cash on the spot? But make sure to check the price of gold today first.
