When it comes to calculating the value of gold, there are plenty of factors that you must take into consideration. Generally, pawn shops and cash-for-gold businesses will only pay based upon the amount of gold that is in a piece of jewelry; they don't pay based upon the name brand, artistic design, or sentimental value.
You must know the value of your gold before going to a pawn shop. This is the only way to negotiate and get a good deal on the sale. In order to find the true value of your gold jewelry, you must calculate its purity and weight as well as know the current market price of gold.
What is the Purity of Your Gold?
Gold is measured in karats. Although 24k means that it is the purest form of gold, most jewelry pieces are mixed with other types of metals because gold is extremely soft. This is why it is common to find jewelry marked with 8k, 10k, 14k, or 18k.
Unfortunately, markings such as GF (gold filled), HGE (heavy gold electroplate), or EP (electroplated) indicate that your jewelry isn't actual gold, which means that it has no selling value at a pawn shop or cash-for-gold business. If your jewelry does not have any markings at all, there are still ways to ascertain its value. Purchase an acid testing kit or gold-verification pen. Each one of these options can confirm the purity of your gold jewelry.
The highest purity of gold is 24k. Take the number that is marked on your gold jewelry and divide it by 24 if you want to know its purity. For instance, if you have a 14k gold wedding ring, then it is 14/24 or .5833% real gold.
How Much Does Your Gold Weigh?
Weigh your gold and get its gram weight. Gold has a value based upon a troy ounce. One troy ounce is the equivalent of 31.1 grams. If you don't have a scale that weighs in grams, then get the weight in ounces and convert it into grams. One ounce equals 28.3495231 grams.
You should remember to remove the gemstones in your jewelry before selling the gold. Gemstones are valuable, but scrap gold dealers won't pay additional money for them. Be aware of this, because dealers will sell the stones and make a higher profit if you fail to remove them first.
What is the Current Market Price of Gold?
Keep in mind that the price of gold is always fluctuating. An up-to-date figure can be found in most newspapers or on the Internet. It is important to be knowledgeable on the price of gold before you attempt to sell your jewelry, because it is the only way to know if you are receiving a sum that's fair.
Calculating the Worth of Your Gold
Now that you know the purity of your gold jewelry, its weight and the current market price of gold, it is time to calculate its worth. Assuming that the market price of gold is $1,200 per troy ounce, your jewelry weighs two grams, and it is 14k gold:
By dividing $1,200 by 31.1, we learn that the price of pure gold per gram is $38.58. The purity of your gold is 14/24, which equals .5833% purity. $38.58 multiplied by .5833 equals $22.50 per gram. This means that the real value of your gold jewelry $45.
The worth of your gold is $45; however, this does not mean that the buyer will give you this amount. Many of them will pay you anywhere between 20 to 60% of this amount, if you allow them to scam you. This is why you must visit many different pawn shops and cash-for-gold businesses and negotiate the price of the sale.
In conclusion, before you try to pawn your valuable gold jewelry, know how much it is worth first. Get as much for your gold as possible. As long as you know how pure the gold is, how much it weights and the current market price of gold, it is easy to calculate the value of your gold jewelry.
