Use These Steps to Determine the Value of Your Gold Scrap
If you want to sell gold scrap, you are among millions across the U.S. who have thought about this way to get extra money or who have actually sold their scarp. However, if you are thinking about going through with this idea, it is extremely important that you are knowledgeable on how to determine your gold scrap price before visiting the local gold scrap buyers. Being informed about how to calculate gold scrap value will give you more confidence in dealing with individuals or companies.
Although you can always make use of a gold scrap calculator online, it would be much better if you have a good understanding of how they calculate the value of scrap gold to begin with so that you will understand how gold buyers determine gold scrap prices. To help you with this, here are some of the steps that you can follow.
Gold Scrap Calculation Steps
1. Classify by karat fineness
Scrap gold pieces have different karat fineness. Some of them can be 10 karat while others can be 14k scrap gold. To know the value of the gold scrap pieces you have, you need to classify them based on their fineness. Generally, they will have their karat fineness inscribed on them. If you are having a hard time reading them, you can use a magnifying glass. If some of your pieces do not have their fineness inscribed on them, you can have local scrap gold buyers or experienced coin dealer look at them and test them for their gold content. Keep in mind, though, that testing can result in some gold loss, although this will have only a minor affect on the value when you sell scrap gold to a dealer.
2. Determine the weight of your gold scrap pieces
To know the correct gold scrap price of the pieces you have, you will also need to get its weight in grams. If you are using a scale that only displays ounces, then you can just convert the figure into grams by multiplying it by 28.25. For example, if you have a 5-ounce piece of gold, it would be 141.25 grams. Make sure that you get the total combined weight of your gold scrap pieces classified by their karat fineness. In short, get the total weight of all of your 10 karat pieces, the total weight of your 14 karat pieces, and so on.
3. Calculate the total value
This will be the last step for you to get the value of your gold scrap pieces before checking the market for individuals who buy scrap gold. However, this step involves four sub-steps.
1. The first will be determining the market gold price. This is typically listed in US dollars per troy ounce. A troy ounce is equal to 31.1 grams. To convert the market gold price into grams, you simply divide it by 31.1. For instance, if the market price is at $810 for a troy ounce, the price per gram will be $810 divided by 31.1, or $26 per gram.
2. You then need to identify the multipliers for each karat fineness. This is because the market price is based on 24-karat pure gold. To get the multiplier, you just divide the karat fineness by 24. For your 10 karat gold scrap pieces, it will be .4167 (10 divided by 24). For your 14-karat gold scrap pieces, it will be .5733 (14 divided by 24). For your 18-karat gold scrap pieces, it will be .7500 (18 divided by 24).
3. Next, you will need to multiply the market price per gram by the appropriate multiplier. Using the $810 per troy ounce market price example, a 14-karat piece will have a value of $15 per gram ($26 times 0.5733).
4. Finally, you will need to multiply the total weight of each group of gold scrap pieces classified by their karat fineness by the appropriate value per gram.
This process will never change, only the market value of the gold. By following these steps, you should have an easier time getting the correct value of your scrap gold before selling it.
In you investment options, you should always consider other popular investing alternatives such as Forex investment online, property investments, stocks, and rare gold coins for sale as options.
Not all gold scrap buyers use the same market price for the gold, so visit several different sites to see what they offer for scrap gold. Start with UsGoldBuyers.com and DailyFinance.com.