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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