Let's just say it weighs 5 grams and has 7x.02 diamonds channel
set into it. What is the formula for figuring out the scrap value of
First of all figure out what you are going to do with the scrap
gold. You need about 3 ounces to refine, so you have to sit on that
gold until you collect that much.
The diamonds are worth nothing, the cost of labor to remove them
negates them having any value. If you buy it, and can successfully
remove the diamonds, use them and that increases you profit. For
something like this, pawn shops pay scrap value, which you can
evaluate by dividing the spot price of an ounce of gold by 24,
multiply by 14 divide by 31.1 ($576 divided by 24 karats $24 x 14kt
$336 divided by 13.1 grams $10.80 per gram. I would pay out about $8
or $9 dollars per gram or about $63. Does not seem like much but you
cannot pay for the material mark ups, labor or profit.
Present it as " This is how much I can give you for this, or you can
save this and have something made out of it in the future, it is
worth more this way."
Some people are glad to get rid of the item, some are disappointed
that it worth so little.
Do not do a favor for your customer at your expense.