Removing small diamonds and estimating payout percentage on gold

Due to the rapid increase in gold prices, I was asked by a client to remove some very small melee diamonds from two 18 K bracelets. I first tried to saw them out using a cutting disk on my Flexshaft, based on reading a previous, very old Ganoskin discussion. That proved really hard, and it was taking forever. Then, I found another discussion which suggested chopping up the gold piece covering it with borax, and melting the gold into balls. It worked like a charm. The tiny melee diamonds formed onto the outside of the balls, I am assuming due to a higher specific gravity (?) and the diamonds came off in pickle. I wanted to share this technique with other metalsmiths who might be doing something similar for their clients.

Additionally, in case you are selling gold, or selling it for your clients, I thought the following might be helpful in your calculations:

  1. Spot price–you already know this changes by the second;

  2. Purity/karat weight in gold 10 k is 41.7%; 14k is 58.5%; 18K us 75%

  3. Payout percentage, the amount of the final cash offer. Sometimes this is calculated after refining costs/melt value (0.376). It’s a good idea to shop around. I got a range of between 65-75% on payout.

The math goes like this: If your 14K bundle weighs 20g.

Pure gold content is 20g X 58.5% = 11.7 grams

If spot is $5300 X melt value=.376 X $5,300 = $1,992

Without melt value calculated (1 oz =28.35 grams; $186.95/oz.

Your 20 grams of gold is worth $186.95 X 20 =$3738.

You can expect the gold buyer to charge between 60 and 80% as the payout.

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