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Buying Old Gold


#1

When you buy old gold from a pawn shop what percentage of spot should you
be paying? And when someone trades you old gold what value should you give
them? Also, lost the formula for coverting 14k gold price to spot etc.
Dave

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#2

If you sell to a smelter (refiner) you can expect to get around 97- 98 %
of spot value. To determine value of 14 kt scrap, take the fine gold
price, i.e. $ 300.00 per ounce divided by 20 pennywieght, or $ 15.00 per
pennyweight pure. $ 15.00 x .585 = $ 8.77 per pennyweight, x 97 % = $ 8.50
per pennyweight.


#3

When you buy old gold from a pawn shop what percentage of spot should
you be paying?

Depends on the piece.

And when someone trades you old gold what value should you give
them? Also, lost the formula for coverting 14k gold price to spot etc.
Dave

10kt is: spot x .4166
16kt is: spot x .6666
18kt is: spot x .75
20kt is: spot x .8333
22kt is spot x .9166

Then divide by dwt of grams whichever you use.

:slight_smile: Charles
http://www.btwtn.net
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#4

Dave - The formula we use in purchasing gold scrap is to: 1.) confirm the
actual "karatage’ with an acid/scratch test.There are several ways that a
gold overlay can fool a casual observer and the manufacturer’s hallmarks
can be falsified. 2.) Multiply the verified carat weight by .0416 i.e., 14
(karat) x .0416 = 0.5824 This is the percentage of the piece’s total
weight that is pure gold. So if you’re purchasing 10kt, 18kt, 8kt and 14kt
gold items you would multiply the individual karat weighted items by
.0416. This will give you the pure gold weight of all these dissperate
karated items. With this final we find the daily Spot Metal
value listings, which can be found in all major newspapers, from a metals
brokerage firm or on the net. Then multiply the gold weight by the spot
price. The spot price for gold is based on one ounce units. So say we have
18.3 dwt of pure gold ( which equates to 0.915 oz.) the formula would be:
0.915 x 292.5 = U$267.63.

Now keep in mind that this is what the PURE gold would be worth. But it is
NOT pure gold. It is scrap and probably questionable scrap at that. Filled
with solder, mixed metals and always questionable alloys that a metalsmith
should beware of in its salvage/recycling. For all practical purposes it
should be refined. And in so doing the refiner’s charges have to be taken
into account. Most honorable refiners pay only 85% of the calculated pure
gold content. And the pawn brokers usually pay between 50 to 70% of the
estimated gold content.So if they can sell it to you for anything more
than 85% of the spot price they’re making more profit. But don’t be
fooled: YOU are taking the risk now.

However when taking old gold in from clients, unless they specify their
desire to reuse the gold in projects for sentimental reasons, you must
always educate them of the risks that that entails. Otherwise we estimate
the gold value that a refiner will pay for the metal and credit the client
for that amount.

Good luck.


#5

Hi Dave, The value of 14k is .584 times spot. The value of 18k is .75
times spot. Good luck. Tom Arnold


#6

% gold in karated material is k/24 x 100

14k = 14/24 x 100 = 58.33%

value of gold = .5833 x spot

price you pay = ?

just make sure that k is correct!

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