As a Money Coach for The New Economy, I created 5 simple steps to calculate how much money your gold is really worth. Before explaining the steps, let's explore four types of precious metal value.
1. Numismatic value refers to coins that are rare or have historical value and are usually worth a lot more than the face value of a coin.
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2. Practical value represents an item that has a use or purpose. A gold watch, for example, can be worn and can tell time if it works.
3. Sentimental value is based on emotional associations rather than its monetary worth.
4. Intrinsic value equals how much the precious metal content is worth. Some refer to this as melt down value, but the cost of melting down the gold should be subtracted from the intrinsic value to arrive at melt down value.
Although we will focus on calculating the intrinsic value of your gold items, the other types of value can add additional money to your pocket.
Here are 5 Easy Steps to Calculate What Your Gold is Really Worth:
Step 1 - Weigh your gold
Weigh your gold on a small and preferably digital scale to determine the number of ounces. Let's say you have some gold pieces of jewelry that weigh a total of 3 ounces.
Step 2 - Convert from ounces to troy ounces
Troy ounces are the accepted weight measure for precious metals. Every regular ounce is equal to about.911 troy ounces (an easy number to remember).
3 ounces x.911 = 2.73 troy ounces
Step 3 - Adjust for carat
Carat measures the purity of gold. Any carat weight less than 24K is only partially pure gold as it is mixed with other metals.
24K is 100% pure gold - 18K is 75% pure gold - 14K is 58.3% pure gold - 10K is 41.7% pure gold
Let's assume all of the pieces in this example are 14K. Multiply the number of troy ounces by the percentage of pure gold. 2.73 troy ounces x 58% or.583 = 1.59 troy ounces of pure gold.
Step 4 - Look up the current spot price per troy ounce of gold
You can Google "current gold spot price". You can search Google for the "current gold spot price".
Let's assume a current spot price of ,450 per troy ounce of pure gold.
Multiply the troy ounces you have by the price per troy ounce.
1.59 troy ounces of pure gold x ,450 per troy ounce of pure gold = ,305.50
Step 5 - Subtract commission/fees
Commissions and fees can vary a lot, so shop around and make sure you know what all of the fees are before you agree to sell your gold. In this example, let's assume a 10% commission.
Subtract the commission from the value of the pure gold.
,305.50 - 10% or ,305.50 x 90% = ,074.95
Other Considerations:
1. Shop around for the best deal. If you were buying something for several hundred or even thousands of dollars wouldn't you do compare prices? Pawn shops and recently created "We Buy Gold" shops tend to offer the lowest price for your unwanted gold items. If your items have some practical (useable) value and are in good condition, consider selling them to a jewelry or antique store. You may also consider selling privately, but don't invite anyone to your home. Meet at a bank, jewelry store, or other safe public location and only accept cash for your items.
2. Mail away your gold? How will you know how much they're going to pay you after fees, commissions and other charges? Are their scales accurate? Are they reputable? Would you mail your laptop or flat screen TV away to a burglar so they don't have to break into your home?
3. Is your gold a usable item like jewelry or is it scrap? Scrap metal generally refers to items that are damaged and can't be repaired or aren't worth the cost of repairing. If your gold is scrap, the company or person you are selling it to may have to spend money to have the gold melted down. That higher cost might increase the commission and fees you should expect to pay when you sell your gold.
Please note that all information contained within this article is educational and should not be interpreted as financial advice. For advice that is specific to your needs and circumstances, you should consult a financial or tax adviser.
Sell Your Gold for Cash? Don't Get Ripped Off! 12 OUNCES EQUALS
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