What is Scrap gold?
What is Scrap gold? How to calculate its Price and Where to sell it?
Scrap gold is a term used to define a gold that is not usable anymore and returned to a refiner to melt down and recycle. It refers to anything which is composed of gold and is destined to be processed again and reshaped to a new item.
For instance, if you have old jewellery that is unusable and you sell it to some gold dealer, who will send these gold items to a refinery, all of these things made up of gold, will be considered as scrap gold.
Therefore the “Scrap Gold” is any gold item that has no value in the market in their present form. To be clear, your broken, old jewellery and industrial gold by-products are considered as “Scrap Gold.”
Value of Scrap Gold?
Do you have unwanted or useless gold items? Do you want to sell them due to attractive gold prices? Many companies are offering you to sell your “Scrap gold” there. Majority of the companies use mailing services in which they ask clients to mail their scrap gold items to them for examination. Once the scrap gold is reached, they find out the scrap gold price and then send the payment.
But instead of directly emailing your pricey gold, take some time to research and determine the Scrap gold price yourself. Once you find out the scrap gold price, the whole process would become smooth and precise.
One of the essential qualities of scrap gold is purity, which indicated the percentage of an item that is composed of pure gold. It is crucial for the determination of scrap gold price to know how much part is made up of gold and how much is of metals other than gold.
Scrap Gold Prices depends on purity.
It is not very difficult to calculate the price of scrap gold. You can use a scrap gold calculator online. You can write in the search bar on google “Scrap gold calculator,” and you will see a lot of them. You need to put the value purity and weight of your gold and in just a few seconds scrap gold calculator will tell you the scrap gold price.
The purity of gold is described in terms of karats. The 24 karats are the maximum gold purity, and such items have the maximum content of gold. You need to change the karat into a percentage. It is straightforward; divide the karat number by number 24. For instance, 22 karats gold will have 91.5% pure gold, i.e. 22 divided by 24.
The purity is measured on a scale of 1 to 24, and usually, it is determined directly from a jewelry item with a stamp of karats. You may have seen written 10k, 14k or 22k on rings or other gold jewelry items. Therefore the 12k gold means it is 50% gold and 24k is 100% pure gold. You may come across the stamps on jewelry items like “375” it means that the gold contains 37.5% purity or it is 9k gold.
When you are done with the determination of gold purity, you have to calculate it on a scale. Usually, the price of gold is mentioned per troy ounce that is equivalent to 31.1 grams. So you have to divide the current amount of gold by 31.1 to find out the exact price of gold per gram.
Now you the current gold price, then find out the melt value of your selling gold jewelry items. You have to multiply the three values which you have determined. The first one is the weight of your gold items in grams, second is the purity of your gold in percentage, and the third one is the current price of gold per gram.
Let’s get it with an example. If the price of gold per troy ounce is $1300 and you are going to sell 12 grams of 10 k gold then the calculation would be like this:
The three factors are:
Purity: 41.6% (10k = 10/24, or 0.41)
Price per gram: $41.80 ($1,300/31.1)
Calculation: 12 x 0.41 x 41.80 = $205.656
The calculation gives us a melt value of $205.656 for this specific piece of selling gold jewellery.
Who buys Scrap Gold?
Now the question is who will buy your scrap gold? Lots of buyers will purchase your scrap and unwanted gold items. Keep in mind that the look or design of the gold pieces doesn’t matter when determining the value of scrap gold. Whether it is a pendant or a bracelet, it will end up in a refinery turning to something entirely new. It is only the material and gold purity which the buyer will see while purchasing gold.
Selling gold jewellery is an excellent way to get some additional money under unexpected conditions to get you out of danger. Therefore it is essential to look for and choose very carefully, the buyer or dealer of gold. The shady gold stores and pawn shops must be avoided who take advantage of people who don’t have a good idea about the price of gold and the way of calculating melt value. They also offer meagre payouts if you have little knowledge about it.
Selling Gold Jewellery
When you get enough knowledge about the gold market and the price of scrap gold, you can move towards selling gold jewellery. Knowing everything about the amount of melted or scrap gold can enhance the chances to get the most money out of selling gold jewellery. In case you are doubtful about your jewellery items that they are more valuable as gold or as a jewellery piece, it is advised to go for a reputable jewellery store.
Before heading towards selling your gold jewellery to the shop, clean your jewellery thoroughly. It is evident that your scrap gold items haven’t touched from many years. The cleaning of jewellery can improve the overall appearance of your jewellery and enhance its value. You can use warm water and dish wash soap with slight scrubbing using a toothbrush to clean it.
Where to Sell Scrap Gold, London?
There are lots of ways available to sell gold in London. Keep in mind that you will never get 100% of the price of your scrap gold. No buyer will offer 100% of melt value. The gold market is unregulated. You need to be careful while looking a buyer of your scrap gold and accepting the offer from a buyer. Some of the options are:
- Online Auction websites
You would be surprised to know that the online auction websites such as eBay are likely to pay you the highest return (most of the time 90% of melt value). In return to this 90%+ value, you have to put some extra efforts. Establishing a precise and complete auction listing is essential.
You will need a digital scale to provide an exact weight. In case your gold pieces are unmarked, you may need a complete gold testing kit to ensure the proper listings. Searching for the current scrap gold listings on the google will assist you in creating your listing and get an idea about the ending of auction prices.
- Mail order gold buyers
These types of gold buyers are popular to sell gold in London. But the mail-order gold buyers or companies are offering a diverse range of melt value; it can range from 3% to 95% of the melt value of your gold pieces. The buy proposal may be cut-price due to the ease of the operation. Don’t let this discourage you from negotiating a higher price after you have received their preliminary proposal.
- Pawn shops or Local Jewellers
Pawn shops also called local jewellers, mostly provides competitive rates for your scrap gold. You also need to understand that the owners of shops have to pay for rent, utilities or advertising.
If you are selling scrap gold to a pawn shop or a local jeweller, keep in mind you are also paying for the convenience. But it required fewer efforts than selling on online auction websites. From pawn shops or local jewellers, you can expect in a range of 70% to 85% of the melt value.
- Travelling “Hotel Lobby” Buyers
Such types of buyers are becoming more popular, but they usually offer lower prices in contrast to various other gold buyers. A New York-based newspaper The Post-Star composed an in-depth article emphasising the significance of getting a second opinion when looking for a sale to an out-of-town buyer.
Sell gold only when you are happy and sure about it!
Selling gold is like a business, and you should decide only when you are comfortable and confident. The knowledge you got from this article will help you gain enough confidence to get ready for selling your scrap gold.
I hope this guide will help you in determining the price of your scrap gold and finding out the best option for selling it. Ask questions if you have any in the comments section below.