Many postal gold companies and smaller gold buyers are out to make a profit. As fair as that may be, there are some companies who have taken it to the extreme and are ripping off their customers. In fact, many members of the public are only being paid a mere 20% of the real value of their gold.
This guide can help you make an informed decision as to whether or not you are getting a fair deal. There are many calculators online, too, that can help you find the latest scrap gold prices so that you can work out the real value of your items.
How Gold Pricing Works
Scrap gold prices are usually based on the “gold fix.” This price fix usually changes twice per working day – in the morning and in the afternoon.
To work out the value of your scrap gold, you will need to know two things:
- The weight of the scrap gold
- The purity or Carat of your item
In some instances, an item of gold that weighs over 1g is required to be hallmarked. The hallmark stamp is a guarantee that your item contains at least the amount of gold stated.
How to Value Your Scrap Gold
If you are able to, weigh your gold items on a jeweller’s digital scale. You need to be sure of the weight, preferably in grams, and ideally to one-tenth of a gram. Kitchen scales aren’t particularly accurate as they usually weigh in increments of 5 grams.
Next, use an online gold price calculator and enter the purity and weight of the gold and choose your preferred currency. Click on “calculate” and the calculator will give you the true value of your scrap gold.
Making Sure You Get a Fair Price
It is worth noting that you are unlikely to come across a dealer who will pay a full 100% of the value of your gold. The dealer wants to be able to make a profit and needs to cover staff wages, refining costs, and so on.
- If you are offered less than 60% of the gold’s value – don’t sell your gold to that dealer. This is a very poor price and you are bound to get a far better price somewhere else. If you have sent your gold away, ask for it to be returned right away.
- If you are offered between 60%-90% of the gold’s value – it’s not a bad deal, but chances are you can do better. Either try to haggle or shop around to get a better price.
- If you are offered more than 90% of the value – this is a fair deal.
Overall, you want to get the best possible price for your gold. Keep the following points in mind:
- Separate your items according to their purity.
- Don’t send your gold to a dealer who does not display their pay out prices on their website.
- Accurately weigh your gold in grams using a digital jewellery scale.
- Use an online valuation calculator to determine the real value of your items.
- If a dealer offers less than 90% of the gold’s real value, shop around to get a better offer.
Take note of all the points discussed above so you can get the best value for the scrap gold you’re selling.