This is what I do not get. The spot price that we all talk
about is for pure 99.99% pure gold and silver. Looking at the
thread about buying old gold, I see people saying to buy gold or
silver at half spot price. The only problem is, especially with
karated golds, is that the metal is only part gold. With 14 K,
only 53%. So how can you apply spot to 14K?? Spot is pure, 14K
is not. I am confused.
M Jones
Hi Marshall. The deal is this - when buying gold at spot you
only buy the fine gold in the scrap, not the alloy. Therefore,
if you are buying 10g of 14k, you only calculate the price on
5.85 grams of fine gold. 10k would be 4.5 grams, etc. Please
e-me back if this is not clear. I have the formulas for all
types of this stuff on disk and will happily post it. good luck,
Mike
Hi, M Jones. To figure raw or spot value for gold, first you
need to deduct for the percentage. For example, 14 karat is 58.33
or 58.4% fine gold, so take the spot price and multiply it by
.584. Ex. 350.00 gold X .584 = 204.40 per oz of 14k Then you can
divide that by 20 to get the price per pennyweight. 204.40
divided by 20 = 10.22 per dwt. 14k Of course, you cant buy gold
at spot from a refiner or supplier. Usually you can expect to pay
from 10 to 20% above spot unless you buy in large quantities.
Ken
hi marshall, to clarify, a person would pay for the gold content
only. in practice, let’s say a person brings in a 14k ring (.583
pure, though some manufacturers use .585) that weighs 10 grams.
let’s imagine that gold is exactly 350.00 per troy oz. you would
multiply this 350 X the purity of gold (.583) which is 204.50,
then divide 204.50 by the grams in a troy oz. (approx. 31.14 i
think) which is about 6.56 per gram. this would be the spot price
for 14k specifically. the person with the 10 gram ring would
probably be offered about 32.80 by a pawn, half of the rings’
intrinsic value: 65.60.
geo fox
I have the formulas for all types of this stuff on disk and will
happily post it. good luck, Mike
Mike: yes, please post those formulas, would be handy to have
some kind of chart available…Dave
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