Definition of Scrap Gold

By Carole Vansickle

  • Overview

    If you ever watch late night television, then you have probably seen your share of commercials offering to buy your scrap gold. They sound very appealing, as they offer you cold, hard cash for gold that you have no earthly use for. Make sure you know exactly what qualifies as scrap gold, if you are going to get involved in either buying or selling scrap gold.
  • Function

    Investors and companies purchase scrap gold for a variety of reasons. They can usually get this type of gold at about 40 to 70 percent of its full value, making the resale options very profitable. However, if you do not want your old gold teeth, why would someone else? The fact of the matter is that most scrap gold dealers melt down scrap gold and consolidate it before reselling. Some jewelers also buy it for repair and resizing purposes.
  • Features

    Scrap gold can be any type of gold that you no longer want, but it is generally not found in large lumps. For example, old gold jewelry and gold coins may be considered scrap gold because they are not worth much on their own. However, a bar of gold is not scrap gold. Scrap gold is often dirty and in disrepair as well, making it difficult to wear or enjoy in its current form.
    Scrap gold can be broken rings or odl coins

  • Types

    There are several types of gold that interest most scrap gold dealers. Nearly every dealer will take 22 carat gold and all of them will accept 24 carat gold. Some also are interested in 18 carat gold. The purer your scrap gold is, the more it is worth. Some scrap gold dealers also prefer to accept only jewelry without stones to make removing the settings easier.
  • Identification

    If you think you own some valuable scrap gold, then there are several ways to determine how much it is worth. You can go to an appraiser or a jeweler to get the value of your gold appraised. This will usually cost a fee of about fifty dollars. You can also mail off your gold to a company that buys scrap gold to get an estimate. Make sure that you can get your items back if the company rejects them or if you feel that the offer is too low.
  • Warning

    Should you decide to deal with a large scrap gold buyer, then you will likely have to mail off your potential scrap gold. This should require you to sign several papers and you should be able to track the progress of your package. Check the references for the company before mailing off your valuables to insure that you will get them or a fair price back. Do not use someone who promises to get you a good deal but has no history in the business.
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