The term Scrap gold has become popular over the years. It has been used to identify old and damaged gold products. However, the use of this term can sometimes be misconstrued. Basically, scrap gold is the gold that gold buyers procure from the public and sell it to a refinery where it will be melted and recycled for use in the production of new gold products. Basically, it is gold destined for recycling.
When you sell your gold to a scrap gold dealer, you should know that it will go through processes that will totally change what it looks like. The gold will be melted and then recycled. Brisbane gold brokers who buy both old and slightly used gold jewellery, sell it at scrap price to a refinery. To make a profit, a buyer will try to buy it from you at a much reduced price to make some profit.
Before scrap gold is bought and sold it is weighed. The unit of measuring weight is a troy ounce which is equivalent to 31.1 grams. A regular ounce equals 28.3 grams.
Gold jewellery is also measured in pennyweights (dwt). A pennyweight equals 1.555 grams or 0.05 troy ounces.
The next important thing that is factored in the calculation of what your gold would be worth is the purity. This is measured in Karats which effectively tells you how much pure gold is in the item relative to other metal alloys. The maximum Karat is 24K, but this is the purest you can get gold at. However, 24K gold is soft and too malleable which means it is not really suitable for the manufacturing of gold jewellery. So you are most likely to find gold jewellery that is 10, 14, or 18 karats.
You will then need to convert the karats into a percentage. You simply divide the number of karats stamped on your jewellery with 24 e.g. 14/24 x 100 = 58.3%
When you have the weight and the purity of the scrap gold jewellery you can then calculate what the value of your scrap gold is.
Here’s an example of how you should calculate the value of your scrap gold:
Let’s say you have 10 g of 14Karat scrap gold and gold is $1,854.72 today, then $1,854.72 divided by 31.1 g equals $59.63. That multiplied by .583 (14Karat) comes out to $34.76 per gram. $34.76 multiplied by 10 grams equals $347.60.
There are plenty of online gold calculators you can try, if the maths gives you a headache. The point of going through this exercise is for you to be able to approach Brisbane gold brokers with some idea of what you should expect.
Remember that gold buyers are running a business and they need to profit at the end of the day. They are not likely to give you that amount. Most gold buyers will offer 60 to 75% of the price to cover their refining and other operational costs.
Be aware that not all gold buyers Brisbane will buy your scrap gold jewellery only to melt it; some buyers might buy and resell to a jeweler.
