Scrap Gold Buyers - An Overview

Posted by Tricia Moore

If you are consider buying or selling gold or other precious metals, you likely will have many questions. These questions range from who will actually buy your gold to who can you trust? You may also be concerned about whether or not you will be offered a fair price. Spending a little time doing your research now to have these questions answered will help ensure that you receive the best prices available.

scrap gold

Who Buys Gold?
There are many gold buyers around today. You may have even seen ads on TV offering to buy your scrap gold from you. It is also possible in some cases to take your old jewelry to a typical retail jewelry store (although not all of them will be willing to buy). A pawn shop will be more than willing to buy your gold or other precious metals. 

Also read: How to Make Money Buying Scrap Gold

None of these options will give you a fair price for your gold. Many of them tend to operate just above the level of con artists. The best option may be to find either a company that wants to buy gold directly or a refinery. 

Finding a Reputable Buyer:
The key is finding a buyer whom you trust. One of the things that almost all of the scams out there have in common is that they will not tell you up front how much they pay. Obviously, each piece is different. However, the consumer certainly should know what the rate is per gram or ounce of pure gold

Conversely, a reputable buyer of precious metals will tell you up front exactly what their rate is. This gives you the opportunity to figure out approximately what you will receive. Then, you will be in a much better position to make a decision about where to sell your gold. 

Whoever you choose to buy your items should also have very clear policies. This includes a solid guarantee and even a return policy. If possible, try to find some reviews about the business in question, making sure they stand behind their guarantees. It is even better if the business will provide an actual appraisal (better still if this is done by a trusted outside agency). 

Calculating Your Price:
To many people, the process used to evaluate their gold and other precious metals is a mystery. However, it all comes down to a very basic mathematical formula. The factors involved are:

1. The weight of the actual gold
2. The purity of the gold
3. How much is offered per gram or ounce

The first step is weighing your gold. If there are no additional stones, this is a very simple process. You can use an inexpensive jeweler’s scale or even take it to a retail store and have them weigh it. 

Now, determine how much actual gold is in the piece. The purity of the gold is determined by its karats. Twenty-four karats is pure gold. To determine the percentage of gold in other karat classifications, simply divide by 24 (therefore, 14k is 14/24 or .5833 pure gold). Multiply this number by the weight of your item. 

Dividing the spot price of gold by 31.1 will give you the spot price of gold in terms of grams. From here you can easily see the “full” value of your gold. Compare this to the rate you are being offered. 

Bottom Line:
Understanding this process will ensure you receive top dollar for your gold and precious metals. The knowledge to find a reputable buyer and calculate the value on your own ensures you will never be scammed. 

Also read:

How to Earn Money From Selling Scrap Silver

Making Money from Scrap Gold

 How To Sell Gold For Dummies

Topics: Gold

March 17, 2017