3 Ways to Calculate the Value of Your Gold

2024 Author: Samantha Chapman | [email protected]. Last modified: 2023-12-17 09:13

If you have gold, you can sell it, but for what amount? Gold prices tend to rise when the economy is not growing or there are concerns about war and inflation. But before you take your gold jewelry, fillings, teeth, nuggets or bars to a gold dealer, you should know exactly what it is worth, to make sure you are getting an adequate amount. Most of those who buy gold do not reveal the calculations they make to estimate its value, but this article will give you all the information to derive it for yourself.

Steps

Method 1 of 3: Arrange the Gold into Carats

Step 1. Use a magnifying glass to decipher the number of karats on each piece

Dividing gold by carat weight will not only help you start estimating its warmth, but can help you find out if items are not authentic. Your first task will be to learn how to determine the authenticity of gold.

• If the figures are illegible, you may decide to have the gold tested by a trusted goldsmith. There is also the possibility that these are gold-plated objects, and a goldsmith will be able to establish this with a chemical test.
• Be aware that many of the gold jewelry produced before 1980 is slightly below their reported carat value. For example, 18K branded jewelry is in fact between 17K and 17.5K. In 1980, the laws changed regarding the branding and purity of gold jewelry.

Step 2. Run your tests on items you have doubts about

• Acid test. Buy the acid and the stone. Both of these items can be purchased online or in jeweler supply stores for a small price, and are available separately or together. A kit will contain bottles of acid, usually nitric acid, to test 10K, 14K, 18K and 22K gold. It will also contain a test stone, which will be made up of different materials, including novaculite or other types of flint-like materials. The kits may also contain a scale.
• If you think gold is 14K, rub the object on the stone and pour a drop of 14K acid on the mark it left. If your item is actually 14K, it will resist acid and won't change. If it is a 10K jewel, the 14K acid will turn brown. If it disappears completely, it's not gold.
• If it is gold without etching, proceed to use acids up to 22K acid, until they turn brown. When this happens, it means you have found the upper karat limit. For example, if 18K acid has no effect, but 22K acid turns brown, then consider 18K gold. If the 14K acid has no effect, but the 18K acid turns brown, consider the 14K gold, and so on.

Step 3. Take the Skey Test

Purchase a gold tester or verification pen that uses the Skey method. These testers cost less than $ 50 and can run 1000 tests. This test is a safe alternative to the acid test and is accurate even on metals such as white gold.

• For any suspicious jewelry, slowly draw a half-centimeter line and go over it 4 times without removing the tip of the pen from the metal.

• Immediately write a line on a blank sheet of paper.

  • If gold is below 10K, the line will be light brown and turn green within seconds.
  • If the gold is 10K, the line will be light brown.
  • If the gold is 14K, the line will be dark brown.
  • If the gold is 18K, the line will be orange.
  • If the gold is 22K, the line will be yellow.
  • If gold is 24K, the line will be red.
  • If there is no line, it is not gold.

  

  Step 4. Keep the gold coins separate from the rest of the gold items

  If you have gold coins, they may have a higher numismatic value than the metal. This value will depend on the antiquity, rarity and general condition of the coin. In this case, the best choice will be to have the coin evaluated by an expert. It is worth doing, as you may be receiving more money this way.

  • If you are experienced with auctioning items online, you may be able to sell coins online, but you may need a certificate of authenticity to convince buyers to pay the right amount. Also offer a secure payment method for a more professional transaction. The upside of an auction (if you know the true value of the coin) is that you may receive more than the required amount if several collectors bid on your item.
  • On wikiHow you can find many articles related to this topic, start searching!

  Method 2 of 3: Determine the Weight of Your Gold in Grams

  

  Step 1. Get a scale to weigh gold

  Determining the weight of gold will help you calculate its value. This number will not necessarily represent the amount that will be offered to you, but it is important to have a reference value to start trading.

  • Purchase a jeweler's scale. You can find them online for less than € 50. A scale of this type is the best for weighing your gold, because it is more accurate than the normal scales you usually use around the house.
  • Use a food scale if you cannot purchase a jeweler's scale. If you have a food scale at home, you can use it to weigh your gold.
  • Take the gold to a jeweler and ask for it to be weighed.

  

  Step 2. Weigh your gold

  Be sure to weigh the items in groups, divided by carats. Place the objects on the scale and allow them to stabilize before taking the measurement. According to the scale, the weight may be indicated by an arrow, or if you have a more expensive scale, you can read the measurement directly on a digital display.

  

  Step 3. Convert the weight to grams, if by chance your scale measures in ounces

  The conversion factor is equal to 28.3495231 grams per ounce, or about 14.175 grams per half ounce.

  You hardly have an ounce of gold for a particular carat, and if that happens it's only for a single carat, so having all the calculations in the same weight unit makes things a lot easier later in the process

  Method 3 of 3: Determine the Value of Your Gold

  

  Step 1. Determine the current gold price

  Knowing how much your gold is worth is vital information if you want to sell it. There is an exact formula to calculate the value per gram of your gold, and the only variable is the gold price. You can find it by searching on the internet or in a newspaper. The price of gold varies every hour according to supply and demand, so the price of the afternoon can be very different from that of the morning.

  It is best to use the internet to check the gold price in real time, and if you have a phone with internet access you can do so within seconds before dealing with the gold trader

  

  Step 2. If you live or work in an Anglo-Saxon country, you may need to divide today's gold price per ounce by 31.1 to get the price per gram

  For example, if the price per ounce today is $ 1600, the price per gram will be $ 51.45 (1600: 31.1).

  

  Step 3. Multiply the euro price per gram of gold by the fineness of the gold

  For each group of objects, divide the karats by 24, then multiply that number by the price of gold per gram. For example, if you have 10K gold and the current price of gold is € 35 per gram, then the price of your gold will be € 14.58 per gram.

  • 10k = 10/24 =.4167
  • 14k = 14/24 =.5833
  • 18k = 18/24 =.750
  • 22k = 22/24 =.9167

  

  Step 4. Go through the insured assessment process of the gold value

  Gold will still have to be valued to determine the true percentage of gold. Gold at 14K for example could be valued at 57.5% pure. When you melt gold, you will lose weight due to the alloys used in the manufacturing process.

  In the evaluation process a gold sample is taken from the rest and evaluated for purity. The sample is dissolved, separated and weighed to reach a verdict about its purity

  

  Step 5. Multiply the price in grams by the weight in grams

  If you have 10 grams of 10K gold and have calculated a price of 14.58 € per gram, then your gold is worth 10 x 14.58 € = 145.8 €. Some examples:

  • If you have 5 grams of gold at 14K and the price of gold is € 35 per gram, multiplying that value by 0.5833 (14K) will give you € 20.4 per gram for that type of gold. 20.4 x 5 = 102 €.
  • If you have 15.3 grams of 10K gold, and the price of gold is € 35 per gram, multiplying this value by 0.4167 (10K) will give you € 14.58 per gram. 14.58 x 15.3 = € 223.
  • Most people use grams for these calculations, but some gold and gemstone traders in the Anglo-Saxon world still use the "pennyweight". There are 20 pennyweights in one ounce, so you can substitute 20 for 31.1 to calculate pennyweights in our formula. It is also possible to multiply a pennyweight by 1555 to get the equivalent weight in grams, or conversely divide a weight in grams by 1555 to get the corresponding pennyweights.

  Advice

  • Gold traders will offer you a price that is 30-60% lower than its actual value, because they will have to analyze it and make a profit from its resale. Due to today's high margins, selling to these buyers is not recommended. However, you may find a retailer willing to offer you at a figure closer to real value. If you decide to sell gold to a buyer, don't just sell to the first store you visit. Meet many buyers to get the highest price.
  • You will never sell diamonds and precious stones to gold buyers. Have the stones removed by a jeweler and have them delivered; never lose sight of them.
  • Gold refiners usually pay between 90 and 98 percent, and many reputable refiners state the percentages they offer. However, many will buy no less than a predetermined amount of gold, usually around 80-150 grams. You will be able to sell smaller quantities at high profile auction sites for around 90% of the real price, or in some cases even more in the case of jewelry in good condition and wearable.
  • Older dentures can be at 24K, but newer ones are usually at 16K. The karat of gold used in dental technology varies a lot, between 8 and 18 K. The white metal in dentures may look like platinum, but be careful not to mistake it for Carbo-Chlorine, which passes acid tests for gold and platinum.