With the price of gold climbing daily (as of this writing, over 1,000.00 an ounce), many people are rummaging through their jewelry in hope of making a few extra bucks by selling their old and broken pieces. Determining how much it's worth requires knowing exactly how to calculate the value of scrap gold.
What is 'Scrap Gold'?
Anything that is made of gold (not plated or filled), whether broken jewelry, dental gold, nuggets or coin has worth and is therefore salable. Care should be taken when selling old coins or antique pieces to ensure that any collectors value does not exceed the actual price of gold.
How To Calculate the Value of Scrap Gold
You will need:
- Magnifying Glass
- Any scale that can weigh by the gram
- A Calculator
- Gold
Step 1 - Sort the Gold by Karat
Because the karat of gold determines its actual value, it is necessary to separate each piece according to the karat. If the piece is not specifically marked, it will generally require testing to determine its karat. Place each type of karat in its own pile and set aside.
Step 2 - Determine the Gram Weight of Gold
Weigh each pile to determine how many actual grams are present. Digital scales work best for this. Dealers will typically pay in pennyweight. The formula to calculate grams to pennyweight is simple- multiply the total gram weight by 0.643.
Step 3 - How to Find the 'Spot Price' or current value of gold.
Many sites list this, among them goldprice.org. As this can and does change hourly, it's a good idea to check the price just before selling. Convert the troy ounce price to gram worth - A troy ounce is 31.1 grams, finding the price per gram is achieved by dividing the current price of gold per ounce by 31.1
Example: Today's gold price is 1,000.00. Dividing this by 31.1 equates to a price of 32.25 per gram. To calculate pennyweight, divide this by 20 instead.
Step 4 - Calculate the Price of Gold per Gram
Divide the karat weight by 24, and then multiply that number to get the approximate price of gold per gram. The following karats have already been pre-divided:
9 KT Gold - multiply the current price of gold by .375
10 KT Gold - multiply by .4167
14 KT Gold - multiply by .5833
18 KT Gold - multiply by .750
Example: Using a 14 KT ring as an example with the price of gold per gram = $32.25, divide 14 by 24 (.5833) and multiply that by 32.25 to get the price per gram (18.81)
Step 5 - Multiply that price by the total gram weight (or pennyweight) of scrap gold to get an approximate value.
If that ring weighs in at 4.5 grams, then multiply 4.5 by 18.81 to get the approximate value.
Tips:
- Dental amalgams often contain palladium and other precious metals and sell at higher prices. Consider those factors if selling any.
- The mark up of gold is extensive- count on not getting anything close to retail price for it.
- Coins may have a higher numismatic value- be sure to have an expert check these before you sell as scrap.
Where to Sell Your Gold
Locally, many jewelers and others interested in gold will advertise in the yellow pages and craigslist. Expect to take 10-20% less than its actual value to offset the costs of refining and profit. Further tips can be found in the article, How to Sell Gold.
Several online companies have emerged in the last year that post their gram/pennyweight prices and update them daily (Google 'sell scrap gold' to find a wide assortment). Reviews on these sites are variable and mixed, so caveat emptor.
Lisbeth Cheever-Gessaman - Lisbeth Cheever-Gessaman is a writer, spiritual activist and free spirit who divides her time between Europe and America cultivating a ...
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