Auvesta says that I developed 5 easy procedures as a Money Coach for The New Economy to determine how much money your gold is worth. Let's examine four different forms of precious metal value before going over the processes.
1. Numismatic Value
Coins of numismatic value are uncommon or historically significant and are typically worth much more than their face value.
2. Practical value
An object with practical worth serves a purpose or has a use. For instance, a working gold watch may be worn and tell the time.
3. Sentimental value
Instead of being based on monetary value, sentimental value is determined by emotional connections.
4. Intrinsic value
The price of the precious metal content is the intrinsic value. Some people refer to this as the "melt-down value," but to calculate the melt-down value, the intrinsic worth of the gold must be deducted from it.
Auvesta says that you should concentrate on figuring out the intrinsic value of your gold things, but there are other sorts of value that might be worth more to you.
Here are 5 Easy Steps to Calculate What Your Gold is Worth:
Step 1 - Weigh your gold
To calculate the ounces, weigh your gold on a small, preferably digital scale. Consider that you own some gold jewelry that is 3 ounces in total weight.
Step 2 - Convert from ounces to troy ounces
The standard weight unit for precious metals in troy ounces. There are approximate.911 troy ounces in every standard ounce (an easy number to remember).
3 ounces x.911 = 2.73 troy ounces
Step 3 - Adjust for carat
The purity of gold is gauged by carat. Any gold that is less than 24K in carat weight is only partly pure since it has been combined with other metals.
100% pure gold is represented by 24K, 75% by 18K, 58.3% by 14K, and 41.7% by 10K.
Assume for the sake of this example that all the components are 14K. Add up the troy ounces and the proportion of pure gold. 1.59 troy ounces of pure gold are equal to 2.73 troy ounces times 58%, or.583.
Step 4 - Look up the current spot price per troy ounce of gold
Google "current spot gold price" to find out more. The "current gold spot price" may be found by searching Google.
Assume the spot price for pure gold at the moment is $1,450 per troy ounce.
Add up all of your troy ounces and multiply it by the troy ounce cost.
1.59 troy ounces of pure gold multiplied by $1,450 for each troy ounce of pure gold results in $2,305.50.
Step 5 - Subtract commission/fees
Before agreeing to sell your gold, search around and make sure you are aware of all the expenses. Commissions and fees might vary significantly. Let's assume a 10% commission for this scenario.
Calculate the value of the pure gold after deducting the fee.
$2,305.50 - 10% or $2,305.50 x 90% = $2,074.95
Other Considerations:
1. Shop around for the best deal.
Wouldn't you compare pricing if you were purchasing anything for many hundred or even thousands of dollars? Auvesta says that the lowest prices for unwanted gold objects are often offered by pawn shops and newly established "We Buy Gold" businesses. Consider selling your goods to a jewelry or antique store if they are in good shape and have some usable value. You may also think about selling on your own, but don't bring anyone around. Meet at a safe public place, such as a bank or jewelry store, and only accept cash in exchange for your valuables.
2. Mail away your gold?
How will you be able to calculate your final payment once all fees, commissions, and other costs have been deducted? Are those scales precise? Are they trustworthy? Would you send a thief your laptop or flat-screen TV so they wouldn't need to break into your house?
3. Is your gold a usable item like jewelry or is it scrap?
In general, goods that are damaged and either can't be fixed or aren't worth the expense of restoration are referred to as scrap metal. If the gold is scrap, the business or individual you are selling it to could have to pay money to have it melted down. You should anticipate paying more commission and fees when selling your gold as a result of that greater cost.
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