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Scrap Gold Secrets


[Most Recent Quotes from www.kitco.com]

This is how YOU figure out what YOUR scrap gold is worth. I put this out here because there are A LOT of unethical companies and pawn shops out there. If you want to sell your scrap gold to us, we will work through this with you.

First, let's learn about gold. Gold is measured by weight and PURITY. Weight is in grams, ounces, or pennyweight. My observations that the less than ethical companies use "penny weight" to skew your calculations making it look like they are paying you a lot, when they are paying you a little.

The price of gold is ALWAYS referenced to Troy Ounces. This is different from a "regular" ounce. A regular ounce is 28 grams, a Troy ounce is 31.1 grams.

Now that you understand grams and ounces, let's look at penny weight. What is a penny weight? Does that mean anything to you? Probably not.  One troy ounce is 20 penny weight.

PURITY: This is the karat number on your gold. 24 karat is PURE gold. This is NOT common. Thai Botts and some gold coins are all that you will probably see that is 24k. 12k gold is 50%. 10k is 41.6%. Just divide your karat rating by 24 to get the purity. Got all that?

Now, lets put this to use:
get the weight of your gold. I prefer and always use a gram scale. I don't mess with penny weight. It is too confusing. A postal scale will work. Get the gram weight of the gold. A typical gold wedding band is about 7 grams. We will call this "W"

get the up to date gold price from kitco.com. We also have it mirrored at the top of this page.

Here is the math:
Take the karat and divide that by 24. We will call this percentage "P"
Take the price of gold that you just looked up and divide that by 31. This gives you the value of PURE gold per gram. We will call that "G".
Multiple the weight of your gold "W" times the purity of your gold "P" times the current value of gold per gram "G"
This gives you the no kidding value of your gold piece. That gives you the basis for the business decision you will make on selling your gold.

Lets try it.

My wedding band is 18k and weighs 10 grams. Gold is currently $1200/ounce.

W=10 (I got this from the scale)
P=18/24 which is 75%
G=$1200/31.1 which is 38.60

Value=W * P * G
Value=10 * 0.75 * 38.60
Value=$290 (I will always round in your favor, just good business practice)

This works for ANY piece of gold.

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