If you are thinking of selling any gold jewellery, it is worth knowing how the value of scrap gold is calculated so you know the best way to benefit. The recent pandemic had a very profound effect on the economy and in turn on the price of gold. The gold price had a meteoric rise but that ended up being helpful for people going through difficult times. They could collect their old and unwanted gold to sell for a very good price. Gold has lived up to its reputation of being a safe haven in times of trouble.
There are a lot of cash-for golf dealers in Brisbane. You won’t have to look very far offline or very hard on the internet to find one. Gold dealers are interested in the value of gold and not so much in the value of other materials incorporated in a piece of jewellery. If your jewellery is somehow unique then you might want to sell it elsewhere. Cash for gold buyers will only give you the scrap value of gold and not the value of the jewellery as is. If you are thinking about selling your gold jewellery it might be helpful to know what a fair price would be.
Cash for gold dealers will calculate the scrap value of the jewellery you sell to them. The gold is sold to refineries and to make sure that gold dealers make a profit, they will not offer you the full scrap value of your gold but a percentage of it. Learn to calculate the scrap value of your gold yourself so you’ll be able to tell whether a dealer is offering a reasonable price for your gold.
How is the scrap value of gold jewellery calculated? There are three crucial factors that are used to calculate the scrap value of gold.
#1. The Purity Of Gold
The value of your gold jewellery is based on the purity of your gold which is depicted as Karats. Gold jewellery will have a stamp that bears the karat number for instance 14k stands for 14 karat gold. Pure gold is depicted as 24k. Jewellery that is 14k you would have to divide 14K by 24k which is 0.5833 which means your 14K gold is made up of 58.33% pure gold.
#2. The Second Factor Is The Weight.
If you have a 14k gold piece weighing 5 grams then that means the weight of pure gold is 0.5833 x 5 equals 2.19 grams.
With that and the market price of gold, the scrap value of gold is calculated by taking the weight of pure gold x the purity x the current price of gold per gram. This means the scrap value of your gold jewellery 2.19 x weight x spot price of gold in grams. This is 0.5833 x 2.19 x 59.97 is equal to $76,61 per gram at spot price.
Gold dealers are different, they may use the same formula to calculate the scrap value but each dealer will take their own percentage under the spot price, this is known as the buyback. The best thing you can do is to monitor the spot price of gold and sell when it goes high.