What is Scrap Gold?
Scrap gold refers to gold that can be melted down and recycled. Any old jewelry can be sold to a gold dealer, who will send it to a refinery to be reprocessed.
How Scrap Gold is Measured
Scrap gold is often weighed in troy ounces: e.i. 1 troy ounce is equal to 31.1 grams. Another common way to measure for scrap gold is called penny weight (dwt). One dwt is equal to 1.555 grams or 0.05 troy ounces.
Scrap gold’s purity is another important characteristic, which tells you what percentage of an item is made up of actual gold. Purity is measured in karats with a maximum number of 24 karats. If you want to determine how many karats are in a gold piece simply divide the karat number by 24. For example, a 14-karat (or 14 k) ring contains 58.3% pure gold (14 divided by 24).
Value of Scrap Gold
Do you have some old unwanted gold jewelry laying around that you might want to trade or sell? Do you know how to calculate its value? Well, let me help you out here.
The weight and purity of the gold item are the two main factors that determine the true value. You will need to know the current price of gold per unit of weight and you also need to know the karat of a piece of gold jewelry to estimate its value as scrap gold. You can check the current gold market price here .
For example, if you have an 18K piece that weighs 100 grams, then the actual gold content of the item is 75% (18K divided by 24) therefore, you have 75 grams of pure gold.
Selling Scrap Gold
None of the scrap gold dealers will pay you as much as your jewelry is worth at the store…scrap gold buyers only care about the value of the metal in your items. They are not concerned about design, age, or sentimental values that you may consider yourself.
As a rule of thumb, most scrap gold buyers will buy your gold at 60%-80% of the market price. The high end of the range is usually offered to people that have a a lot of gold to sell. Remember that scrap gold buyers may offer different prices depending on what they will do with it and to whom they will resell it to. This is a reason why you should research various options to get the best price for your scrap gold items.
There is one exception to the rule; which is a buyer who doesn’t buy for the gold scrap, but for its value as jewelry. Those buyers base their valuations on the design, brand, and age of the gold item, so if you have antique pieces, you might be able to get a better price for them elsewhere rather than if you sold them as scrap gold.
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