Gold is an admiringly-worthwhile commodity that can be moulded into beautiful jewellery pieces.
However, selling extra gold can assist in covering expenses like medical emergencies, wedding costs, education costs, company expansion costs, etc.
Selling gold is quite lucrative, but getting an accurate gold rate per gram is not easy. Many factors influence the gold’s price, like the purity of the gold, the Karat and the weight of the gold.
When selling gold, it is vital to remember that its price might fluctuate over time. Consequently, it is crucial to maintain track of the current market value.
Most people who want to sell their gold jewellery have no idea how much they should get from the buyer.
This article will guide you on how to calculate the gold scrap value.
What is Gold Scrap Value?
When any gold piece loses value in its original marketed value, for instance, a piece of broken jewellery, it is referred to as scrap gold. This type of gold is any gold delivered to a refiner to be melted down and recycled. The scrap value is the amount or value a seller gets for scrap gold.
How to Calculate Gold Scrap Value?
To determine whether an offer is fair, people need to have a solid understanding of the worth of their gold before visiting a dealer.
To calculate the gold’s scrap value; follow the below steps:
1. Determine the Karat number
To compute the gold’s scrap value, sellers must first identify the Karat of the gold.
A Karat (K) is a unit used to express gold’s purity and is the standard measurement for gold purity worldwide. The gold’s purity is gauged by the ratio of pure gold to mixed alloys. Most gold jewellery is between 18 Karats and 24 Karats, 24K being the purest. The purity of gold increases with increasing Karat numbers.
One may check the Karat markings on the jewellery to determine the item’s Karat, or the gold alloy can be tested to see how much pure gold it contains.
The Karat markings on gold jewellery are often imprinted somewhere on the gold item and are represented by the letter K or Kt.
One may get the purity of their gold jewellery examined if it has no markings. Most jewellers do these tests, and if they visit a reliable buyer, they will probably use nitric acid to ascertain the gold’s Karat content.
2. Inspect the weight of the gold
Checking the gold jewellery’s weight comes next after determining the Karat number. It will provide a general indication of how much gold someone is selling and how much money that person may hope to get in exchange.
Using a jewellery scale, one may estimate the weight of gold jewellery.
People must convert the weight of the gold jewellery to ounces to receive an accurate assessment since gold is measured in ounces/grams.
3. Find the current market price of the gold
As a person starts the process of selling their gold, having knowledge of its value is quite helpful.
The worth of one’s scrap gold per gram may be determined using a precise formula, with the gold rate per gram in the market at the time being the sole variable.
You can either conduct an online search or consult a local newspaper to get the current gold price. Due to supply and demand, the price of gold might change significantly from what one has observed in the morning to the afternoon.
Moreover, it is paramount to remember that the gold rate per gram might vary depending on location. Thus, knowing the current market price of gold is crucial.
With Muthoot Gold Point, the whole approach to selling gold is seamless; they use cutting-edge technology to verify the gold’s current rate, weight and purity. The gold valuation technique is accomplished in front of sellers, which guarantees they obtain the best price.
Additionally, all dirt is removed from the gold with ultrasonic machines to determine the purity of the gold to offer you the best rate.
4. Compute the market value of gold
The last stage is to determine how much the gold jewellery is worth.
Gold’s scrap value = Current price of gold per gram * total grams of 24k gold
Grams of pure gold = Weight of gold jewellery * gold purity/24
The online gold price calculator from Muthoot Gold Point may be used by anyone who wishes to discover the market worth of their gold.
Using the calculator, one may easily and quickly determine the precise value of their gold jewellery. The calculator generates an exact selling price once the user enters the weight of the gold and the Karat.
After prolonged use, gold becomes less valuable. This information can be used as a reference if one plans to sell gold to avoid further undervaluing it.