Silver is also a precious metal that can have both a melt value and collectible value. There are three main types of silver that is sold for scrap value: Silver Coins Silver Jewelry Silver Flatware Silver US coins were used in various denominations during the 1960's and prior. They include the following dates: Nickels - Commonly called war nickels, these were minted from 1942-1945. The easiest way to identify a silver nickel is to look at the back of the coin. If the dome has a "P", "D", or "S" above it, it is 35% silver. Dimes - All dimes prior to 1965 were 90% silver. Quarters - All quarters prior to 1965 were 90% silver. Halfs - Halfs prior to 1965 were 90% silver. From 1965-1970, they were 40% silver. Dollars - all Dollars prior to 1933 were 90% silver. You can use a website to determine scrap value on coins. Check out www.coininflation.com. Older coins also may have numismatic / collector value. Use ebay or PCGS.com to detrmine your coins condition and value from a collector's standpoint. Never clean collector coins, you will dramatically reduce the value! Most flatware is either silver plate or Sterling Silver. Sterling is .925 Silver, or 92.5% silver. Some flatware sets are worth extremely high prices, since silver has skyrocketed in price in 2011. Even a single silver spoon may fetch $3-10.

How to Value Your Gold Jewelry Before Selling

Yesterday I introduced several alternative places to sell gold and silver jewelry, as well as silver coins. Before we weigh the benefits of the alternatives, we need to understand how gold is valued.

Spot (also known as scrap / melt value) gold prices are set throughout the day on the Spot Commodities Market. Prices are based on troy ounces. A troy ounce is different than a typical ounce. A troy ounce contains approximately 31.1 grams. A "kitchen ounce" used in cooking weighs 28.35 grams.

You can buy a digital gram scale for less than $25. Buy it online or from a local store like Harbor Freight. I use one that came with a 200 gram calibrating weight, and my scale weighs from .1 gram up to 200 grams.

Now we know a troy ounce of gold weighs 31.1 grams. Let's assume gold today is worth $1650 / troy ounce, how do we know what our gold is worth?

Pure gold is 24 karat. To determine what your gold is worth, you need to look for a hallmark that tells you the karat weight. Most jewelry is 10KT, 14KT, 18 KT or 22KT. So with a calculator, you can divide the karat weight by 24.

10KT divided by 24 = 41.67% gold

 So an ounce of 10KT jewelry has a melt value of $1650 times 41.67% = $687.56

14KT/24 = 58.34%  One ounce of 14KT = $962.61

18KT/24 = 75% One ounce of 18KT = $1237.50

In the example using gold at $1650 / ounce, one gram is worth:

10kt = $22.10 /gram ($687.56 / 31.1 grams)                       

14kt = $30.95 / gram                                                                            5.7 gram 14 kt wedding band
                                                                                                                        $176.41 melt value
18kt = $39.79 / gram

As you can see, the Karat weight makes a big difference in value. It's important to look inside the band or on the clasp to determine your karat weight of the jewelry you intend to sell.

A typical ring can weigh from 3 grams up to 40 grams. So know your karat weight and your gram weight before you sell.

You can sell your gold locally, online, or ship it to whoever offers the best price. Now that you know how melt or scrap gold is valued, shop around for the best price.

Locally, jewelry stores, pawn shops, coin shops, newspaper ads, home party buyers and strip center gold buyers all buy scrap gold. The price they pay can vary from 30%-98% of melt value. Call around for the best price, or look for a refiner that has a good track record and pays the highest price. A lot of the local shops send their scrap gold to the same refiners that you and I can use.

Do your own research on refiners, but I have heard good reviews on ARA Gold in Dallas. Some people prefer to sell locally, but personally, I wouldn't accept less than 90-95% of melt value for my gold.

Tomorrow we will discuss silver coins, sterling jewelry, and sterling flatware.







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Understanding the Process

page contents OK, you have some old jewelry, old silver coins, broken chains and necklaces, rings, earrings hiding in your closet, safety deposit box, etc. just gathering dust. How do you get rid of it and get the best price?

 Before we discuss the best options, let's look at where it is being bought these days.

Available options include the following:

Full page ads in newspapers advertising "WE BUY GOLD / SILVER " at your local hotels

Pawn Shops - (anyone watch Pawn Stars?)

Coin Shops

Local strip mall gold /silver buyers

Home party gold/ silver buyers

Friends and Family

Ebay

Craigslist

A local or national refiner

In my next post, we will discuss the pros and cons of each option.