How much is my gold worth?

September 4, 2019
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Perhaps you invested in gold or you inherited some gold, and you wonder what it might be worth. You can calculate the value through a few key things to make this process easier. Countless companies have begun to look for ways that they can get their hands on unwanted gold jewelry, and you may be able to sell it easily.

Get the Value of Your Gold

First, you have to understand the purity because gold buyers will often look at the value based on this. They indicate the quality based on karats, which directly links to purity. Karats sit on a scale of 1 to 24, and they will usually directly record the value of it. Let's say that you have a gold piece of 12k. You divide this number by 24, and you'd wind up with 0.5 in purity. If you had a gold piece of 18k, you'd have 0.75 purity of gold. In some cases, they have stamped a number on your gold piece so that you can keep track of it.

Calculating Spot Price

For the next step, you will look up the current value of your gold. Google the term, "Spot Gold." After you have done this, you have three factors that you have to calculate that include:

  • Weight—based on grams
  • Purity—based on percentage
  • Current price per gram

Let's say that the current market rate for gold sits at $1,200 per troy ounce. This means that if you have a 10-gram piece at 12 karats, you'd take 10 grams multiplied by 0.5. Meanwhile, you'd take 1,200 divided by 31.1 to get the calculated value. Finally, you will take all the factors and multiply them. For example, multiplying the three factors, you have 10 grams of gold times 0.5 times 38.585. In the end, this gives you a total value of $192.92. 

More Examples

To further clarify, we'll give you another example. Let's say that you check the market rate, and it sits at $1,800 per troy ounce. You take 1,800 divided by 31.1. That will give you 57.88. Meanwhile, you have a 12-gram piece and 19k. You'd take 57.88 times 12 grams of gold times 0.79. In the end, you will wind up with a total value of $548.70. When you get the decimal, you may have more than two numbers, and you will round to whatever is greater. 

What Can You Expect

You have to be realistic when it comes to your old gold jewelry. This especially becomes true when dealing with cash-for-gold companies or mail-in-for-cash companies. However, you should never let yourself be taken advantage of either. They will most likely need to buy it off you for less so that they can make a profit, and this immediate cash translate to a slightly lower price. 

To maximize the return on your old gold jewelry, you should do two things. First, you should calculate the actual value of your gold. After you have done this, you will need to shop around with multiple dealers to ensure that you get the fairest price. 

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