The expression "Scrap Gold" might not sound that exciting - yet, this unique asset could be quite valuable under the right circumstances. In order to get the right value out of your scrap gold, it is very important to fully understand how to measure it, to understand its purity, and to know the factors that affect the value of scrap gold.
What is Scrap Gold?
Glad you asked! "Scrap gold" is an expression that refers to any gold that is no longer of value in its original marketed form—for example, broken jewelry or industrial by-products. Scrap gold is often sent to a refinery, in order to be melted down and recycled to manufacture something else. In other words, any gold that is supposed to be reprocessed and/or repurposed could be considered scrap gold.
Who buys Scrap Gold?
Many gold buyers who purchase gold items from customers, such as pendants or bracelets, are not really be interested in the resale value of the item itself, but on the material used to make the item: gold! It is very likely that the bracelet/pendant in this example will end up in a refinery, on its journey towards becoming something else.
Selling old or broken gold jewelry for scrap is a great way to earn some extra money when unexpected bills pop up or you want to treat yourself. Having said that, it is highly recommended to avoid shady "cash for gold" stores or pawnshops, which often offer low payouts and take advantage of people who simply don't know any better.
Your best bet is to look for an online scrap gold buyer with major endorsements and good reviews, such as SellYourGold.com, which was ranked #1 by NBC's Today Show in a blind study of gold and jewelry buyers.
How much is Scrap Gold Worth?
The gold price is updated daily by a team of bankers in London, and its value rises and falls like a pendulum swing according to the current economic mood. As you might know, the economy often swings back and forth when it comes to how commodities are priced. Gold is one of these commodities, and it might have a different value at different times in the market.
Having said that, the value of scrap gold is determined through accurate measurements. Oftentimes, scrap gold is measured in troy ounces, with a single troy ounce equaling 31.1 grams. When you have your gold appraised, keep in mind that these heavier troy ounces differ from our common ounces! Another popular term among gold buyers is "pennyweights" or "dwt." There are 20 pennyweights in a troy ounce. So if you have half a troy ounce of gold, you're looking at 10 pennyweights.
The Karat System
The purity of the gold also plays a very important role in the value of your scrap gold. It is important to understand that most gold products are not actually made out of pure gold. In many cases, there are other elements used in the manufacturing of gold items, such as silver or copper, which are added to the gold to give it durability. The karat system is the most common way to show gold's purity. 24 karat gold is pure gold; 18 karat gold is 75% pure because 18/24 = 0.75, and so on.