While any piece of gold jewellery is worth wearing and keeping, there are some that you hope to sell for good. When sold to a gold buyer, this jewellery is usually sent to a refiner to be melted down and recycled. That is where the idea of scrap gold comes into the picture.
Scrap gold is an expression referring to any gold item that is no longer of value in its original marketed form. This item is sent to a refinery where it is melted down and recycled to be manufactured into a new form. A good example is when you have a piece of broken jewellery, and you sell it to a gold dealer as scrap gold.
How do I measure scrap gold that I’m looking to sell?
Measuring scrap gold is part of the buying and selling process. As far as measurement is concerned, take note of the following:
Weight: Scrap gold is weighted via the following measurements.
- Troy ounces: 1 troy ounce is equal to 31.1 grams (1 gram = 0.032 troy ounces)
- Pennyweight: 1 pennyweight (1 dwt) is approximately equal to 1.555 grams, 0.05 troy ounces, or 0.055 ounces.
Purity: Scrap gold is measured in karats.
- 24 karats: This measurement is the maximum gold content an item can have. Gold with karats is regarded as pure gold.
- 14-karats: As an example, a gold item with 14 karats has 58.3 per cent pure gold.
What should I know about selling scrap gold?
Estimating the price
The value of gold scrapsis determined by two major factors—weight and purity, as discussed above. That simply means that when you factor in the unit of weight and the karat of a piece of gold jewellery, you’ll be able to estimate the value of scrap gold, and hence, its price.
For instance, if you have an 18K gold item weighing 100 grams, you have an actual gold content of 75 per cent, which means that you have 75 grams of pure gold. All it takes is to multiply 75 grams by the current market price of gold per gram, and you’ll get an estimated price.
If you plan to sell your piece of jewellery, you must first know the value of your gold scraps. Be sure to consider its weight and purity and do the math based on the calculation discussed above.
Finding a good seller
There are various scrap gold dealers out in the market who are willing to buy your gold jewellery. Understand, however, that they will most likely pay you less than your estimate because they work to make a profit out of reselling your gold item.
As scrap gold buyers may offer various prices for your jewellery, the best course of action is to do a little research. As a rule of thumb, though, most buyers will purchase your gold item at 60 to 80 per cent of the market price. Find a seller that offers a good price and has an established reputation in the market.
At this point, you now know what scrap gold means and how it is valued. Be sure to consider all the valuable information mentioned above before taking the plunge into selling your piece of gold jewellery.
Do you want to sell your pre-owned and unwanted gold jewellery? We’ve got a scrap gold calculator. Get in touch with us today to see how we can help you sell your gold jewellery in London!