Before I go off the deep end and get in trouble I want to know if I can ask a general question about how dealers decide how much your gold or silver is worth. I have some 18k gold necklaces, silver scrap coins, and silver scrap from my jewelry making days. It would be nice to be more informed about this part of collecting. Thanks, jeankay
It's very simple. Pure gold is 24k, so they determine what karat the jewelry is and price it on a percentage of spot price. Most will offer 10% - 15% below spot.
First they determine the actual gold and silver weights. For example, 30 grams of 18k gold would be computed as 30g x 18 / 24 = 2.5g AGW. Multiply that by .0322 (the troy ounce equivalent of a gram) and multiply the final number by the bullion value of gold at the time of your sale and deduct the percentage under melt that they are paying (generally 10-20%).
Thats it.. I will but Gold from Hon but selling it is something different.. LOL.. Great formula guys.. I use my excel spreadsheet. It does the goesintas for me..
a local pawn shop is buying at 13 bucks per gram of 24 K gold. obviously they do not fall into the "most" category that you spoke of.
Prices Hi all you great CT people! Now I have a better idea of what a dealer would pay for the gold I have. Don't wear jewelry anymore and have some silver coinage that has seen better days... so decided to try to sell it. Thanks so very much for your replies. So, should I post this in the general Coin Forum? I will get back to you tomorrow... getting late out here on the left coast. jeankay
$403.78 per ounce needs a new term. "Ripoff" is too kind! My question is, that's their offer but is anyone actually selling to them at that price?
That is a horrible price for a gram of 24k gold. Less than half of melt. I wouldn't sell him/her anything at those prices.
i sure hope not. i drove by to go to the post office and saw that and nearly wrecked the car. the offer is offensive at best IMO and i almost went in to chastise them for it BUT, in a free market they can set their price and people can sell or not sell. i would not sell to them and i hope noone would either.
Most dealer actually work off decimals. It is very easy to use and does not matter what spot is. So it works like this Spot times decimal will give you the amount that the gold can normally be purchased for from other dealers. Of course this is for large transactions as I would not pay some one off the street the same amount because I only make roughly $1.00 per DWT ( penny weight. 20 dwt per oz ) All prices are quoted in DWT = pennyweight. Again 20 penny weight per oz where as there are 31.10546 grams per oz. I find penny weight easier to work with. 10 k .0188 14 k .0262 18 k .034
I would guess that the quote was actually for 14k gold which is only .58333 pure unlike 24 with is .9999
no the sign said "now buying 24K gold for 13 dollars per gram" they were very clear on what they were buying and for how much.
Thats bad. I know we all have to make a profit and it is true. I have a second location that my fathers wife runs and she seems to but alot of gold at half of what we get out of it. I know that might sound bad but most of the gold comes in a little groups at a time. mostly nothing ever over 60 to 80 dollars.
Unfortunately you must remember that where you attempt to sell Gold, Silver, etc also makes a difference in the price. People can quote prices all day long but when you go to sell you may find a completely different story. Gold, Silver, Platinum prices are posted all over almost every day lately due to it's sky rocketing values but if and when you attempt to sell some, you may run into a variety of different prices. The coins would naturally bring a much less price since most would tell you the excessive wear was the loss of Silver on the coins. Many purchasers of precious metals have many, many stories ready to lower the price of what they purchase. It would pay to check around in person.
