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.
Precious metals, more commonly gold, in bulk form is known as bullion. The value of this bullion is determined by its traded value on the commodity markets, which means the price can fluctuate hour to hour. Bullion metals are commonly cast into ingots or coins. Goverments can only authorize the production of coins. Where any company can produce bullion or medallions. One of the defining characteristics of a bullion metal is that it is valued by weight and not face value, like money.
This is interesting because a country, may mint gold bullion into coins and assign them a face value. There was a time time when the money was equal to the metal. Typically now it is for marketing purposes that governments give coins a face value. People do not want to purchase medallions like the Grant Hill coins. For instance, Canada has a $50 dollar face valued coin. But when you compare that to what it is worth by weight, approximately $1100, as bullion, it is worth more by weight than at face value. Nations do this to give the coin a numeric value in addition to their bullion value. Now you can see why gold coins, and other precious metal coins are so popular with collectors. When the price of the precious metal goes up, the coin’s value goes up based on bullion, and when the price goes down, so does the value.
For more information about gold, refining and bullion, please visit Manhattan Gold & Silver today. We have a broad range of services to help you refine your precious metals.