Finished Candy Corn Bracelet
The value of gold jewelry is typically based on two factors; the value of gold and the artistic value of jewelry. These two factors combine to form the total value of some gold jewelry.
When a person buys gold jewelry in a department store or jeweler, they often pay two or three times more than the price of gold. For example, a bracelet can have $ 50 worth of metal, but it sells for $ 150. However, when you sell your broken or unwanted scrap gold, you are only paid for the precious metal, not the jewelry's artistic value. This is because the typical precious metal trader buys jewelry for scrap, and it will soon melt down in gold bars.
Gold is a commodity traded on the commodity markets. The price of gold is determined by the supply and demand of millions of people buying a gold sales. If you look at the London PM Fix price, you can see that the price of gold is quite high. Back in 1976, a troy ounce of bullion was sold for as little as $ 150.
The item was worth around $ 400 a ounce for two decades, until the turn of the century when gold prices skyrocketed; up from $ 400 to just over $ 1,400 per ounce in 2011. If you've been holding old or broken jewelry at the back of your jewelry box, it's never been a better time to sell.
The first step in calculating the value of your scrap gold is to find the current value of gold. You can simply search Google for the phrase "spot gold". You will find that Kitco offers the information you are looking for.
You must sort your items based on purity. Put your 10k in a high, your 14k gold in another high, and so on. You can typically find marks on the inside of rings, on locks with necklaces and bracelets, on earrings etc.
What do the different labels mean on my jewelry?
Real Gold - 8K, 9K, 10K, 14K, 14KP, 18K, 22K, 24K, .585, .417, .750
Plated Gold - Marked 1/20 12K GF, HGE, EP, Avon, Monet or no markings
24k gold is pure, while all other varieties have a certain percentage of non-precious metal mixed in the alloy. To calculate the purity, divide the mark by 24. For example, a bracelet marked 14k has a purity of 14/24 or 58.5%. A ring marked 10k has a purity of 10/24 or 41.7%.
Now you know the price of gold and the purity of your jewelry. The next step is to find the weight of your jewelry. You want to use kitchen scale or post scale to weigh your jewelry. You need to convert the weight to troy ounces to calculate the value. There are 31.1 grams per troy oz and 1.1 common ounces per troy oz. (Don't worry, there are examples at the end of this article)
One last factor that plays a role is the percentage of the value you can actually get. If you were a refinery with a smelter and a list of customer orders for gold bars, you could sell gold to 100% of the spot value. If you are a precious metal dealer who works with refiners, you can sell your gold for about 95% of the spot value. However, you as a consumer should expect to receive anywhere from 20% up to 65% of the spot value.
Your local farmer's shop and some of the big named online buyers will try to pay as little as 20% of the spot value. Your typical online gold buyer usually pays 50% of the spot value. Some of the better online buyers pay as much as 65% of the spot value. You definitely want a personal reference to get the best price!
The last step is to do the math. Let's do some examples.
You have a 10k class ring that weighs 17 grams and today's spot price is $ 1425 per troy oz.
$ 1425 * 10k / 24k * 17 / 31.1 * 65% is $ 295
You have a set of 22k earrings that weighs 0.1 oz on your kitchen scale and the spot price is $ 1465 per troy oz.
$ 1465 * 22k / 24k * 0.1 / 1.1 * 50% is $ 61
You have a 14k Herringbone necklace that weighs 0.6 oz and the spot price is $ 1385
$ 1385 * 14k / 24k * 0.6 / 1.1 * 55% is $ 242
You have a 24k gold charm that weighs 8 grams and the price of gold is $ 1412 per oz
$ 1412 * 24k / 24k * 8 / 31.1 * 60% is $ 218