Get Money For Old Scrap Gold – 5 Simple Steps to Calculate How Much Money You Could Get
Whenever Gold hits an all time high, like $1,000 an ounce, suddenly lots of adverts pop up on television offering to buy your scrap gold. They send you a postage-paid envelope for you to send them your old, unwanted gold and a few days later a cheque arrives in the post. The more reputable companies give you the chance to send the cheque back if you don't like the price.
But how do you know if you are getting a good price or not for your scrap gold?
The key to answering this question is to work out the scrap value of the old gold you intend to sell. This is not difficult and can be done in five simple steps but there are a couple of pitfalls to avoid in arriving at the correct answer.
1. Find out the Gold Quality from& at the Hallmark.
In the UK most gold is 9 or 18 carat but you can also find 14 and 22 carat gold.
9-carat gold is hallmarked 375 and is 37.5% gold = 0.375,
14-carat gold is hallmarked 585 and is 58.5% gold = 0.585,
18-carat gold is hallmarked 750 and is 75% gold = 0.750, and.
22-carat gold is hallmarked 916 and is 91.6% gold = 0.916.
2. Weigh your Gold.
You need to weigh it using any good kitchen scales with a digital readout in grams. Avoid the pitfall of using kitchen scales in ounces because an imperial ounce used in cooking is not the same as a Troy ounce used in the Gold Bullion market! A Troy ounce is exactly 31.1034768 grams (but 31.1 is close enough for our purposes).
3. Find the Current Gold Price.
To do this, just look in a newspaper or visit a website such as goldprice.org. Gold is usually quoted in US Dollars per Troy ounce.
4. Find the current US Dollar to Pound Sterling exchange rate.
Again, look it up in a newspaper or currency rate website, such as oanda.com. Make sure you get the rate in the right form. You are looking for a rate such as 1.6563, not the inverse rate (0.6037).
5. Do the sum.
Gold Percent x gram weight x gold price all divided by 31.1 = USD value of your old gold.
For example if you had a 9-carat gold (0.375) bracelet weighing 14 grams and today's gold price is $997/Troy ounce with the exchange rate 1.6563, your calculation would be:
0.375 x 14 x $997, all divided by 31.1 = 168.30, this is the value in US Dollars.
Next, divide 168.30 by exchange rate (1.6563) to get the value in GBP, which is 101.61.
TIP A good check is that the value in Pounds is always smaller than the value in Dollars.
Clearly dealers in scrap gold are in business to make a profit so they will offer you less than the true bullion value for your gold, but if you know how much your gold is worth then you are in a much better negotiating position.
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