Pricing & Selling Scrap Gold

Since gold prices are high, eager investors are looking for ways to take advantage of the situation. Selling scrap gold is one way. You can find scrap gold literally lying around collecting dust. If you rummage through your home, you will probably find some. If you gather it together and sell it as scrap gold, you can make some money. In some cases, lots of money.

Start by locating the current spot price for gold. A search of the Internet will provide this information. The spot price is what gold sells for in financial markets around the world on that day. The price changes every day. The spot price of gold is usually stated in dollars per ounce.

Scrap gold is found in old jewelry, flatware, nuggets, fillings, and beat up gold coins. Before you plan to sell gold coins for scrap be sure they don't have more value as coins. A reputable coin dealer can tell you. Scrap gold can also be found in computer components and high end stereo cable tips. Track down all your scrap gold and put it in a box.

Weigh the box then subtract the weight of the box itself. Keep in mind that most the items containing gold scrap is made up of substances other than gold. 14 karat gold is only .585 fine. That's just a little more than half gold. When you sell your scrap gold you will only be paid for the gold in it. The other stuff just melts away when the gold is reclaimed.

Multiply the weight of your gold scrap by the current spot price of gold. Now cut that number in half. The result is an extremely rough estimate of what you might be paid for the gold content of your scrap. Understand that the gold content might be less than you estimate and you will probably get less than that when you sell.

Find a gold scrap buyer. You might be able to sell it to a jeweler in your city who makes their own jewelry. There are also many scrap gold buyers on the Internet. Look for one with a good reputation that has been in business for a long time. They will send you an envelope for your scrap gold. You send it back insured. They will make you an offer based on the gold content of your gold scrap. Some companies offer you the current spot price of gold minus a transaction fee. Others will offer you a percentage of the current spot price of gold with no fee. This is usually 90 to 95 percent of the current spot price of gold.

Shop around until you find a scrap gold price you like. If you don't like what a gold scrap buyer is offering they will send your shipment back to you. Feel free to try several gold scrap buyers before deciding to sell. Different buyers estimate the gold content of your scrap differently. They may have vastly differing offers for the same gold scrap.

Selling Gold Jewelry Through the Mail

The "cash for gold" craze is prompting many people to send their gold jewelry off for a quick check. However, there are several things every person selling gold jewelry through the mail should know. You can fetch a fair price if you do your homework and shop around. Otherwise, you may get cheated.

Examine all the gold jewelry that you wish to sell through the mail. If it is of particularly high quality, contains precious gems, was made by a famous designer, or is an antique, it may be worth more to a jeweler or collector. Gold jewelry sold through the mail is primarily low value, out of fashion, broken, or scrap. Gold refiners melt this down and reclaim the gold content.

Weigh the gold jewelry. The easiest way to do this is the put it all in a zip lock bag and weigh it on a postal scale at the post office. It is important to know approximately how much gold you are selling to determine how much it is worth. If your bag of gold jewelry weighs at least one ounce, it could be worth several hundred dollars. One ounce equals 28.35 grams or 18.23 pennyweight. Gold dealers refer to these measurements so it is important to know them.

Realize that you will only be paid for the gold content of your gold jewelry. 18K gold is 75% gold. 14K gold is a little more than 58.3% gold. 10K gold is about 41.7% gold. Many clasps and other accessories on gold jewelry aren't made with any gold. Take this into account when calculating the gold content.

Find the spot price of gold. This is updated in the newspaper and on the Internet every day. The spot is stated in dollars per ounce. Multiply the spot price of gold by the number of ounces of gold you have. This will give you a starting point when determining a fair price.

Research the reputation of gold buyers. Get advice from people you know who have sold gold jewelry through the mail before. Consult consumer organizations like the Better Business Bureau to check consumer complaints. Well established gold refiners have been in business for decades, care about their reputations and state their prices and fees up front. Do not deal with any gold buyer who does not establish their terms in writing.

Ask the gold buyer of your choice to send you a mailing envelope. These envelopes are specially designed for gold jewelry shipments. Be sure to document and insure all shipments.

Expect to be offered less than the spot price of gold. This is due to generally conservative gold content estimates of buyers and their profit margin. 90% to 95% of the spot price of gold is a good offer. Some offers are as low as 50% of the spot price, so shop around. Beware of gold buyers who also charge a processing fee.

Wait for an offer. It should arrive within a few days. The gold refiner will assess your gold jewelry and offer you a price. If you agree, they will send you a check. If you don't, they will send your package back. You may need to pay for the return postage.

What a Gram of 14K Gold Is Worth

Convert grams to ounces. This is done by dividing grams by 28.35. For one gram of 14K gold, the conversion would be 0.035 ounces.
Figure the amount of pure gold in 14K gold. 14K gold has a gold content of 58.3%. The rest of it is other metals alloyed with the gold to make it harder and less expensive. Multiply the amount you converted from grams to ounces (0.035) by the percentage of pure gold (0.583). The result is 0.02 ounces of pure gold in one gram of 14K gold.
Look up the spot price of gold. This is the price paid for pure gold in financial markets around the world. The spot price of gold changes every day, so it is important to look it up each time you perform a calculation. A simple search of the Internet or a newspaper financial section will provide the spot price of gold.
Calculate what a gram of 14K gold is worth by multiplying the amount of pure gold in ounces contained in 14K gold (0.02 ounces) by the spot price of gold. For example, if the spot price of gold is $900 per ounce the value of one gram of 14K gold would be 900 x 0.02 = $18.
Now that you know what a gram of 14K gold is worth, you can multiply that figure by the number of grams of 14K gold you have. This will tell you what the gold inside a 14K gold item is worth. Just remember that you must recalculate this value every time the price of gold changes.