How To Calculate Scrap Gold Prices Per Gram
With the stock markets trading at record highs and the United States economy entering positive territory after years of recovery, investors are beginning to pay attention to gold price, which took a tumble in mid-2015 and were expected to decrease further in light of an upbeat forecast for the American economy. Still, gold investors are preparing for an appreciation of the metal, and dealers are once again very interested in purchasing scrap gold. Here’s why:
The financial markets are cyclical, which means that downturns are expected after every bull run. This is a trend that answers to what is known as the “herd instinct,” whereby many investors feel that the market is at such high levels that it has nowhere to go but down. This sentiment results in investors selling their positions at profit and staying away from purchasing stocks, which in turn sends many people to the gold markets, where they hope to find greater profit potential during the bear market.
It no longer makes sense to question the true industrial value of gold as a commodity. Investors will assign value to this metal as long as it exists, and they tend to do it whenever Wall Street enters a period of downturn. If you are in possession of scrap gold, it may be a good idea to keep an eye on the markets so that you can sell your jewelry when the price is right. Here’s how you can calculate the value of your scrap gold per gram:
The first step is to determine purity, which means checking for provenance and karat markings. If you are in possession of jewelry produced in a country that enjoyed a peak period of gold production, chances are that your precious metal is 18 karats or higher. To this effect, think about Peru in the 1970s, Australia in the 1990s, and China in the 21st century. If no markings are visible, you can always head to a jewelry shop and pay a few dollars to have it tested.
The next step is to weigh the gold, which should be done using a gram scale; once again, a local jeweler can do this for you for a small fee. Then, look up the spot price of gold, which can be gleaned from the major financial websites such as the Wall Street Journal. The price quoted is per Troy ounce, in which there are 31.1 grams. The spot price should be multiplied by purity and then divided by 24 karats. For example, spot gold was around $1,180 in early June 2015; your 18 karat gold will be $885 per gram since 1,180 * 18 / 24 = 885.