How To Determine The Value Of Your Scrap Gold
The price of gold enjoyed another boost recently with the troy ounce rocketing past $1,200. This has caused a lot of experts to wonder how long the upward trajectory can be sustained. Many speculators are now fearing a drop in the price, though few people are able to say with confidence when the downward spiral might begin.
In the meantime, if you own old gold chains, earrings, rings, and other items that have been stored away and forgotten, now may be a good time to consider selling them. By this time next year, it's possible that the price per troy ounce will have plummeted. With this in mind, it's important to know how much your scrap gold is worth, especially if you plan to sell it. This article will provide step-by-step instructions for determining its value.
Categorize Your Gold Pieces
Each piece in your collection is rated by karat fineness. For example, a bracelet may be 14K; a necklace might be 18K; a gold ring may be 22K. The karatage is noted on the piece, though you may need a magnifying glass to see it. If you're unable to tell the karat fineness of a given piece, even with a magnifying glass, have a jeweler test it. Be aware the testing process usually results in a small bit of gold being lost.
Once you have identified the karatage of each item, place them into distinct piles. That is, place all 14K items into one pile and 18K items in another.
Determine The Number Of Grams In Each Group
Next, you'll need to determine the number of grams in each pile. The easiest - and most accurate - method for doing this is to use a gram scale, which can usually be purchased for less than $20. If you do not have access to a gram scale, weigh each pile by ounce and convert the number of ounces to grams.
The math is simple. Since there are 28.35 grams per ounce, multiply the number of ounces in each pile by 28.35. For example, if your pile of 14K gold items weighs 2.50 ounces, multiply 2.50 by 28.35 to arrive at 70.875 grams.
Evaluate Each Pile Based On The Current Spot Price
In order to calculate how much each pile is worth, find out the current price per troy ounce. You can find the spot price of gold online at most major news media websites (e.g. CNN.com).
First, convert the spot price per troy ounce to a price per gram. Because there are 31.10 grams in each troy ounce, divide the current spot price by 31.10. For example, if the spot price per troy ounce is $1,200, divide that figure by 31.10 to arrive at $38.59 per gram.
Before you can determine the value of each pile, you'll need to identify the fineness of the gold for each karatage. This is done by dividing the number of karats by 24. The following chart provides the numbers for you:
10KT = 10/24 = 0.4167
12KT = 12/24 = 0.5000
14KT = 14/24 = 0.5833
16KT = 16/24 = 0.6667
18KT = 18/24 = 0.7500
20KT = 20/24 = 0.8333
22KT = 22/24 = 0.9167
24KT = 24/24 = 0.1000
Next, multiply the number of grams in each pile of gold pieces by the corresponding fineness. Then, multiple the result by the price per gram calculated above. In our example, our pile of 14K items weighed 2.50 ounces, or 70.875 grams. Recall that the price per troy ounce was $1,200, or $38.59 per gram. Thus, we can calculate the value of our pile of 14K items with the following formula...
(70.875 x 0.5833) x $38.59 = $1,595.36
Perform this calculation for each pile to derive the aggregate value of your inventory. Keep in mind this is the value based on the current spot price. The price you'll ultimately receive from an online gold buyer will be somewhat lower.
Article Source: FxTradingStock.com
About the Author
The best online resource to Cash For Gold or sell jewelry can be found at refinity.com
by: Kevin Canivous
Total views: 45
Word Count: 638
Date: Thu, 3 Jun 2010
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