You may have noticed a new industry emerged in Australia over the last few years. This is due to ever increasing gold prices and the constant demand for gold. This new industry of gold buyers, gold dealers and gold refiners play an important part of the gold recycling process. So what do gold buyers buy and how to they value it?
Gold buyers buy anything gold, from gold jewellery, gold coins, gold nuggets and often will pay you in cash for your unwanted gold items. Gold buyers will test and asses your gold items on the spot and buy it from you based on the international spot price. When selling gold to them, how do they calculate the price gram or value your gold items?
The Current Gold Spot Price
Gold’s price, like that of any other commodity, swings from day today and is a live market price always moving. The current gold price is also called the spot price and it is usually expressed as a price per ounce. A troy ounce of gold weighs 31.1 grams. If there is a big demand for gold and prices are high, you will receive a greater price for the value of your scrap gold; but, if there is a low demand and market price, pricing will be lower. This is the starting point in how gold buyers value your gold jewellery or other gold items.
Gold’s weight & purity
When it comes to the value of your gold, the overall gold content, as well as the weight and purity of your gold is what matters most. A single small 24 karat gold coin could be worth more than a large thick gold necklace. This is due to the necklace being alloyed down into 9k gold, thus only 37.5% gold is contained in the item unlike the gold coin made from pure gold.
Due to its softness, most jewellery and other products are not produced of pure gold, which is 24 karat. Carat rating refers to how much pure gold is contained in a gold item. The lower the karat number, the less pure gold it contains. This is why gold buyers will test your gold jewelley first and sort it into carats to see how much pure gold is contained in your alloyed gold.
Extracted Gold from Gold Items
Once the jewellery is sorted into karats for its pure gold and bought from the customer. It is then amalgamated and sent off to the refinery to be put through the refining process to turn into pure gold. Most of the gold sent to the refinery will end up as pure gold bullion bars and sold off to gold investors.
How much will a gold buyer pay for my gold?
Gold buyers will often pay 80-90% of the market price for your gold by weight. You could obtain up to 95% of the market value if you sell highly pure gold, such as a 24 karat gold coin.
Gold Buyers have to make a profit to stay in business and gold buyers will be charged refining fee’s for having your gold refined at the refinery to be turned into pure gold bars. Now that you know how gold buyers determine the price of gold, why not visit one today?
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