How to Calculate the Value of Scrap Gold?
If you have some scrap gold with you then you can surely sell it and make some quick cash. However, as we know, gold is a precious metal and is priced in terms of grams. Before you approach a gold dealer to sell your scrap gold, it is important that you find out the weight and worth of your gold to avoid getting scammed. Gold dealers will vary in exactly how they value your gold, but below are the general guidelines that will help you make the right assessment for your gold.
Step 1: Separate the gold by Karat
The price that you will get for gold is based on its purity which is measured in terms of Karats. Pure gold has 24 karats. The different gold pieces that you have will have different karats such as 10k, 14k, 20k, and 24k. So, the first thing that you need to do is separate all the gold and organize it in different piles of different karats.
It’s not always easy to identify how much karat the gold is. One way to do so is to use a magnifying glass and see if the karat is mentioned on it. You may find this somewhere on the inner side of your jeweler While determining the karats, the age of the gold also matters. For example, if the gold was purchased before 1980s and it says 20 karats, then it will actually be 19k or so. If the number is not readable or has been erased, then you can get the gold tested from a reputed dealer. The dealer would generally perform a chemical test to ascertain the gold quality. If you do not want to go to a dealer, you can also perform your own acid test by purchasing an acid test kit.
Along with jeweler and other gold, if you also have old gold coins, then you should keep them in a separate pile. These coins may have historical value and should be valued separately.
Step 2: Weight each pile of gold
Once you have your gold separated by karats, the next step is to determine the weight of each pile in terms of grams. Because of the precision required, you need to use a jeweler scale for this. You can either purchase one or go to a jewellery store to get it weighted. If your weighting scale provides the weight in ounces, you need to convert it into grams. Remember that 1 ounce is equal to 28.3495 grams.
Step 3: Calculate the value of gold
Now you have the gold separated by karats and have the weight for each pile. The next step is to find the current price of gold. You can find this on a website like goldprice.org or by checking the price in the newspaper. Gold prices are generally provided in troy ounces, where one troy ounce is equal to 31.1 grams. Say the current price is USD 1,655. This price is for 31.1 grams of gold. The price per gram of gold will be 1,655/31.1 = USD 53.21
Now you need to value each pile of your gold. The price we calculated above is for 24k gold. You will need to adjust this price for each pile of gold based on its purity. Let’s say you have 20 grams of 20 karat gold. The total value of this gold will be 20*53.21*20/24 = USD 886.83. Similarly you can value each pile of gold.
Now you have the best estimate of what your gold is worth, and you can approach a gold dealer with confidence. However, remember that gold dealers will not pay you the full price of the gold. Most dealers will buy the gold at 10-40% discount to its actual price.