When you are considering selling old, scrap and unwanted gold jewellery, it is wise to have a good idea of the value of your items. You will never get the full melt value from any buyer (everybody’s got to make a living!), but knowing your gold’s worth will guide you from selling it for ¬†ridiculously under-priced amount.

Gold purity is measured in karats. Pure gold is 24 karat but the vast majority of gold items are made from gold alloys combining gold with other metals. For example, 22 karat gold is 91.7 percent gold, 18 karat gold is 75 percent gold, 14 karat gold is 58.3 percent gold and 10 karat gold is 41.7 percent gold. Most gold coins and gold bullion are 22 karat gold. Most gold jewelry is 18, 14 or 10 karat gold.

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1. Using a scale made for weighing small items like jewelry, coins or mail, weigh the gold item. Gold Guys weighs gold items in grams, (rather than troy ounces), as it is a more appropriate measure for small jewellery items.

2. Calculate the amount of pure gold in your gold items. Do this by multiplying the weight of the gold item in grams by the percentage associated with its purity.

  • For 10 karat gold, multiply by 0.417.
  • For 14 karat gold, multiply by 0.583.
  • For 18 karat gold, multiply by 0.75.
  • For 22 karat gold, multiply by 0.917.

3. Look up the going rate for gold. This is called the “spot price.” This chart lists the spot price in Canadian Dollars per Kilo. If you don’t see a chart, visit kitco.com for spot prices.

[Most Recent Quotes from www.kitco.com]

4. Compute the bullion value of the gold item. Do this by multiplying the amount of pure gold calculated in step 2 by the spot price of gold calculated in step 3, and divide the result by 1000. For example, if you had 4 grams of 18K gold and the spot price was $45,370/kilo, the full bullion value of your gold would be ((4 x .75) x 45370) / 1000 = $136.11

5. Consider transaction costs. ¬†When selling a gold item to a gold dealer, expect to be paid 10 to 30 percent less than the bullion value of the gold item. Also, don’t forget to account for currency conversions on any particular day – spot prices for gold are almost always in $US unless otherwise stated.

2 comments

  1. I am new gold trader. These valuable informations help me to avoid from loss.
    Thanks for valuable informations……!

  2. This is interesting, I never thought of selling my old jewlery off as gold…

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