How to Calculate the Value of Scrap Gold

By Ina Vega

  • Overview

    With all the scrap gold lying around in our drawers, it can be tempting for us to sell it. After all, it's probably old, broken jewelry that nobody wears anymore. The question now is what is the value of my gold and how do I calculate it so I can get the best deal?

    • Step 1

      First of all, go through all your jewelry and separate it into different piles. Each pile must be of the same karat. For example, all the 10k gold in one pile, all the 14k in another pile and so forth. If you have any gold coins, do not add those to the old jewelry. You'll get more money if you sell it to a coin collector or a dealer.

    • Step 2

      Check each pile for its weight in grams by using a gram scale. If you don't have one on hand, you can buy one from eBay or you may also weigh your gold by ounces. Multiply by 28.35: for example, if your gold weighs 3 oz, its weight in grams is 3 x 28.35 = 85.05 grams.

    • Step 3

      Always check the daily value of the gold, as it may change because of supply and demand. The Internet or the newspaper are good sources for finding this information. The finest gold is, as of January 2009, worth $900.00 per troy ounce (which is 31.1 grams).

    • Step 4

      To figure out today's gold price per gram, just divide today's gold price by 31.1.

    • Step 5

      Now you must multiply your gold by its fineness. Take each pile of gold and divide its karat by 24, then multiply that number by the price of today's gold value per gram. If you have 12kt gold and today's price is $28.94 per gram ($900.00 divided by 31.1), then the price of your gold is $28.94 x .5833 = $16.88 per gram. 10kt =10/24 = .4167 14kt = 14/24 = .5833 18kt = 18/24 = .750

    • Step 6

      Now multiply the price per gram by the weight in grams. If you have 10 grams of 12kt gold and the calculated price is $16.88 per gram, then your gold is worth 10 x $16.88 = $168.80.
    • Skill: Moderate
    • Tip: Most dealers will buy the gold at a lesser value because they have to process it and resell it to make a profit.
    • Tip: If you think your gold contains other metals such as platinum, then calculate their value too and sell appropriately.
    • Tip: Some buyers use pennyweight (DWT) instead of grams. There are 30 pennyweights in a troy ounce. When calculating, substitute 20 for the 31.1, or multiply a pennyweight by 1.555 to get a gram weight. You can also divide a gramweight by 1.555 to get pennyweight.

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