The price of your gold jewellery and the price of gold in general isn’t as predictable as some people would have you think. While it is true that the price of an ounce of gold rises and falls on the market and that should produce a price shift in the price of gold jewellery when it comes to used jewellery things are a little bit different.
When you buy gold jewellery, a jeweler will price your gold for its creativity and workmanship. Used gold jewellery buyers will price gold differently.
You should remember that gold is a commodity. There is an international market for it that stretches beyond the jewellery industry and publishes prices daily. The price of gold changes daily and responds quickly to small and major changes in the economy.
When selling your gold jewellery, it is worth knowing how to calculate the value of your scrap gold. You will benefit from the high prices of gold so you should keep an eye on the daily spot price changes.
Where is the price of gold headed?
In 2020, the price of gold rose by 32% and breached the $2,000 mark in August 2020. The meteoric rise of gold during this time confirms the long-held view of gold being a safe-haven investment. This precious metal is reliable in times of economic turmoil. Since then many analysts have predicted that the price of gold could go as high as $2,000 but for a while, it seemed to resist movement from $1,800 until the threat of the Russian invasion of the Ukraine.
With all that is happening now, gold jewellery buyers have seen a rise in the number of people trying to sell their gold jewellery for cash. Finding a gold buyer in Melbourne to buy your gold jewellery is easy, you only have to do a Google search.
Gold buyers are mostly interested in the value of gold and will not be interested in the value of any gems that are set on your metal. If you have gold jewellery that has unique workmanship, sentimental value, or some sort of interesting history. A cash-for-gold buyer might not be your best bet. However, if you are looking to sell your gold jewellery for its scrap value, you might get cash for it much quicker. Make sure you understand what the scrap value of your gold jewellery is and what a gold buyer is likely to offer you for your gold.
What is scrap gold? Scrap gold is gold that is sent to a refiner to be melted down, refined, and reused to make new gold products.
Gold buyers will want to make a profit when they are buying your old gold and selling it to refineries, so the cheaper the gold they buy, the more profit they can make.
How is the value of scrap gold calculated?
The value of your used gold jewellery is based on its karat value. You can find this number stamped somewhere discreet. The karat value stands for the quality of your gold. If you have a number like 14 K stamped somewhere on your jewellery to work out the percentage of gold that is divided 14 by 24 x 100 that is equal to 58.33%. This means 58.33% of your jewellery is pure gold whilst 41.67% is other metal alloys.
Next, you need to get the weight. Purity and weight are the two numbers that are important in working out the value of what you have to sell. There are online calculators that can easily calculate the value for you.