Gold and Coin Articles

We discuss all facets of buying and selling coins, jewelry, bullion and more.

Valuing Your Loose Gold

Selling your loose gold and unwanted jewelry is a great way to cash on your investment when you need to. But, how do you determine the worth of your gold? With a bit of work, you can get the best price for you unwanted and loose gold.
The first step to determining the value is to organize your gold by karat weight. You should be able to easily identify the karat weight of your gold as most pieces are engraved with the pieces weight on them. On a necklace or bracelet, the karat weight will usually be engraved on the clasp. On a ring, the weight is usually engraved on the shank. In the case of brooches and earrings, it is usually placed on the largest flat surface. If you are unable to identify the weight of your piece, it would be worth having your jewelry looked at by a reputable jeweler or dealer. If you are unsure of the karat weight of your gold or suspect that it is gold plated, you should also purchase and acid test kit or skey test. Both tests can usually be purchased for around $50 online or from a local jeweler.
Your next step should be to separate your gold coinage from the rest of your gold pieces. Sort your coins by their rarity, worth, gold content and condition. This is a crucial step as coins vary greatly in value. If you are unsure of what you have, it would be best to seek out the advice of a reputable coin collector or dealer to assess what you have. Most collectors will more than likely also be able to recommend to you a trusted buyer.
Now that you have sorted out your collection of loose gold, you will need to weigh it. You can easily purchase a jeweler’s scale or food scale. A jeweler’s scale would be preferable as they are manufactured  to be more accurate than a typical gram scale. If a jeweler’s scale is out of the option a food scale will work as well as they weigh in ounces as well.
When you are ready to begin weighing it is important to weigh your gold in groups. Simply take your separated karat weights and coin weights and weigh them according to group. Give the scale a moment to accommodate the weight and then take the reading. It is important to remember that most scales, with the exception of high quality jeweler’s scales, will only give you a near estimate to the weight in ounces.
Your next step should be to convert your ounces into grams. It is more than likely that you will not have a full ounce of one particular karat so we have provided you with the conversion rate. The conversion ratio for ounces to grams is 28.3495231 per ounce or 14.175 grams per half ounce.
Your next step should be to determine the value your gold is worth and what you can expect to get out of it in your transaction. You can easily find the current price of gold on the internet or newspaper. It is important to remember that the price of gold can change almost by the hour. It is recommended to do this step right before you are about to make the transaction to have the most recent and accurate value.
Once you are ready to make your transaction you will take the current gold price in dollars and divide it by 31.1 (a troy ounce is 31.1). For example, if today’s gold price is $2,100.00 for a troy ounce then the price per gram would be $67.52.
After you have made that calculation, you will need to multiply by the fineness of the gold. You will to divide each karat by 24. We have provided a sample of how your math should look.
                Today’s Gold Price:                                                             $2,100.00
                Divided by 31.1 (price per ounce):                                   $ 67.52
                10k divided by 24 (fineness):                                             .4167
                Price per ounce multiplied by fineness:                          $28.13 per gram
It is important to remember that this will just be a rough estimate as the dealer you sell to will need to determine the actual percentage of gold within your product. Gold will lose weight when it goes through the melting process and the dealer will need to take this into account.
Your final step would be to determine how much you should look to receive when selling your gold. You will now need to multiply the price per gram by the weight in grams. Say you have 10 grams of 10 karat gold and the price per gram is $28.13, you would take your 10 grams of 10 karat and multiply it by the price per gram at $28.13 making your estimated value $281.30.

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