How does the gold scrap price influence what you get paid when you sell gold jewelry?

 

The gold scrap price is determined primarily by the spot price of gold on any given day.

 

What is the spot gold price? It’s the price per ounce of pure gold on the world markets. This price is tracked around the world, around the clock, and is constantly changing, minute by minute.

So when you walk into a store or mail in your scrap gold, the amount you receive will be based primarily on the spot gold price at the time.

 

However, there are other factors that will impact the scrap gold price too.

 

First, you have to understand that gold jewelry and trinkets are not made with pure gold.

 

You may need a magnifying glass, but if you look closely on each item of gold you own, you will find one of the following karat numbers: 10K, 14K or 18K.

 

The pure gold content will vary according to the karat number, with 18 karat gold containing more pure gold than 14 karat gold, and so on.

 

So a bracelet made from 18 karat gold will have a higher scrap gold value than a similar bracelet made with 10 karat gold.

 

The amount of cash you get for your gold will also be influenced by how much of a commission the dealer is going to charge on the transaction.

 

This is where you need to shop around. Some dealers will charge you 10% on the value of the gold, while others charge as much as 20%.

 

Trading your gold scrap for cash can bring in a tidy sum of money – particularly if you own plenty of 24 karat gold, and if you find a dealer who won’t charge much more than 10% on the transaction.