blog

The MGS Precious Metals Blog

Manhattan Gold & Silver is an industry leader in precious metal pricing and refining with more than 30 years of experience. During our time in the business, we’ve found the topic of precious metals to be a vast and interesting one. Here on our precious metals blog, we write in-depth posts about the science of precious metal refining, historical and modern uses for precious metals, market news, and much more. Subscribe to our RSS feed to stay current, and discuss the latest posts on our Facebook page.

Calculating the Value of Your Scrap Gold

March 12, 2010 10:26

With the price of gold on the rise and holding fairly steady, consumers and business owners have been cashing in on their damaged or scrap gold.  To determine how much your scrap is worth, you will need to know the purity as well as the weight.  To calculate an approximate value, you will also need to know which market / prices your gold refinery is basing their payouts on.  Manhattan Gold & Silver calculates their scrap gold payout based on the London Fixings released twice daily by the London Bullion Market.   Hedging options are available in order to make spot trades throughout the day, limited to certain accounts.

Start by separating your gold into karat weight (10k, 14k, 18k, etc.).  As a reminder, 24 karat is 99.9% pure gold.   Jewelry is not normally made with this karat weight since it is so soft; it is more commonly found in gold bars and coins.  14 karat is 58.5% pure gold, and is the most popular choice for jewelry.  Use the following chart as a reference when determining the purity of your scrap gold.  Do keep in mind when calculating your scrap gold you want to leave a half karat room for error.  This is to account for solder and other impurities on jewelry.

 

Once you have separated your gold by purity, take the weight in pennywiehts divided 20 X assay X percentage return X gold price.  You can simply call for a pennyweight price; this is what we use for small quantties when tested by hand.  Higher percentages are paid for melts and assays.  The LBMA sets gold fixings per troy ounce, which is not a commonly used metric outside of the jewelry industry.  If your scales do not provide a troy ounce reading, consider keeping a troy ounce conversion chart or gold calculator handy for quick reference.


Payouts for scrap gold vary based on the size of your lot, purity of gold, and percentage your gold refinery keeps for their services.  Manhattan Gold & Silver is equipped with on-site furnaces, which allows for same day melt, assay, refining and payouts.  Calculate your estimated payout using the tools above or contact us today for a free quote.

Sell Your Lot

Sell Your Lot >

Get an instant payout quote for your precious metals, then choose from 2 ways to sell.

MGS Apps

MGS App >

Download our precious metals prices app and take advantage of a suite of unique tools, including historical charts, price alerts and more!