When it comes to selling off scrap gold, there are a lot of questions that may come to mind. Who is going to buy my gold? Will a gold dealer buy my gold pin? It’s difficult to know where to start if you’ve never sold gold scrap. However, it’s not impossible to learn.
Read on to learn how to sell your scrap gold (the right way) and the reasons why you should consider doing so.
Why Sell Your Gold Scrap?
While scrap like your broken jewelry might be useless for everyday wear, its precious metal content like gold, silver, or platinum can be immensely valuable. Not only could your scrap be taking up space in your home or office, but you’re also missing out on a great opportunity to make some quick, easy cash.
You’ll likely always have a market to sell your scrap gold as it consistently ranks as one of the most valued precious metals. The gold market tends to fluctuate, but the price of one ounce of gold has consistently been above $1,300 since the start of 2018.
But before you start making plans to become rich off your gold scrap, let’s get a basic understanding of the gold market so you can research current gold prices and get a better idea of what your scrap is worth.
Important Gold Market Elements to Understand
- The Price of Gold: The current price of gold is measured by how much gold costs per ounce. However, this price tends to fluctuate every day so be sure to check reliable online sources for the most accurate, up-to-date gold prices.
- Factors Influencing the Price of Gold: Several factors exist that determine the price of gold, including:
- The value of national currencies
- Central bank reserves
- Economic situations
- Worldwide demand
- The Spot Price of Gold: The spot price is the price that is quoted for immediate (on-the-spot) payment and delivery of a precious metal. Spot prices are typically based on the London Fixing price but are slightly adjusted by other factors like supply & demands, region, etc.
- Remember, the spot price of gold is important because the higher the spot price, the more of a profit you can make when selling your gold scrap.
How To Determine The Value of Your Scrap Gold
The value of your gold scrap depends on its weight and purity, which is typically expressed as a karat or millesimal fineness.
Karats are measured as 24 times the pure gold mass divided by the total mass (gold and impurities.)
On the other hand, millesimal fineness denotes the purity of a precious metal by parts per thousand of pure metal by mass in the alloy. For example, an alloy containing 75% gold is denoted as “750”.
Here’s a handy guide to help you understand how weight and purity come together to help you estimate the value of your gold.
Other Factors to Consider When It Comes Time To Sell Your Scrap
Although prices for precious metals are set per troy ounce by the London Fix, most dealers use the pennyweight of the gold to determine the payout.
A pennyweight (dwt) is a standard unit of measurement used in the precious metals industry. It originated in 15th century England where the weight of an English penny was exactly 1/20th of a troy ounce and 1/240th of a troy pound of sterling silver. Therefore, there are 20 pennyweights in a troy ounce and 12 troy ounces in a troy pound.
To find out the equivalent pennyweights of a troy ounce, multiply the troy ounces by 20.
For example: 1.5 Troy Ounces (1.5 oz t.) in Pennyweights (dwt) = 1.5 oz. x 20 = 30 dwt
Then, to determine how much your gold scrap is worth, simply divide the price per troy ounce by the pennyweight of your scrap.
The price of 1.5 troy ounces of 18 karat gold = $1350
$1350 ÷ 30 Pennyweights (dwt) = $45 per dwt
You can also use our handy pennyweight calculator to easily convert other units of weight into pennyweights.
Finding a reliable, reputable place to sell your gold can be difficult. Many gold dealers exist that state “We Buy Gold” on their signs, but they don’t tend to pay out the spot price of your item, so it’s important to choose wisely. Be sure to consider selling your gold to a precious metals refiner, like Manhattan Gold & Silver. We offer expert advice and offer all the tools you need to sell your gold at fair prices.