Scrap Gold Prices

As a rule, the weight and karat of the gold determines its value. Ten-karat gold means that it has 42% gold content and 58% other metals. Fourteen-karat gold is actually 58% pure gold and about 75% of the content of 18-karat jewelry is gold. Therefore, a piece of 14-karat gold jewelry that weighed about an ounce would be worth $928, or 58% of $1,600 — the current market value. From there, a seller could expect an offer of around 60%-80% of that price, or $550 to $750. It is important to note that the average scrap gold prices mostly depend on the composition that it comes with. In case the scrap gold is considered to be pure, the pricing can be slightly higher. But if the results are reversed, the pricing will tend to be low. This in simple terms means that in case the scrap gold is pure enough, the prices may be higher as compared to scrap gold that has been alloyed. It is therefore very important to check the composition of the scrap gold so that you can end up with the correct pricing that will be easily accepted in the market niche.

Consumers should use the Better Business Bureau site to help determine buyer repertoire’s and also get some helpful tips:

Know the weight. If you measure your jewelry yourself, keep in mind that jewelers use a different measurement standard called a Troy ounce. A common U.S. scale will measure 28 grams per ounce, while gold is measured at 31.1 grams per Troy ounce. To add to the confusion, some dealers will also use a system of weights called pennyweight to measure a Troy ounce while others will use grams. A pennyweight is the equivalent of 1.555 grams, so consumers should also be aware of how their jewelry is being measured to determine if the price is fair.

Know the karat. The Federal Trade Commission requires that all jewelry sold in the U.S. describe a karat fineness. Fourteen karats means jewelry is 14 parts gold and 10 parts other metals, or about 58% gold. Most jewelry ranges between 10 and 18 karats and jewelry of different karats should be weighed separately. Sometimes dealers will weigh all the jewelry together and give you the lowest karat value – another pitfall to avoid.

Know the current price of gold. Always check the fair market value first to be sure you are getting a good deal.

Scrap gold prices tend to fluctuate now and then just like the other precious metals. However, due to the fact that these particular metals are not usually in a readily available investment form, it is important first of all to ensure that they have been melted down and at the same time assayed shortly before they can be repoured back for investment purposes. It is therefore very important to ensure that this process has been carried out before the pricing is set on them. This is simply because they will be in a form that can be readily acceptable by those interested.

In order to come up with the correct scrap gold prices, it is important for you to have the knowledge of distinguishing pure gold from alloys. It makes no sense for you to set scrap gold prices that are not desirable to you. Make sure you take the advantage of savvy investors who specialize in holding reserves so that you can seize the opportunity of upturn in case the price of scrap gold is set to rise.

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