Gold Prices vs Gold Price per Gram
Gold prices fluctuate every day, so the price per gram will also fluctuate daily. But you should be aware that, with gold selling at over $1000 an ounce, 24K gold only fluctuates up and down 3 cents a gram per dollar change, 14K gold less that 2 cents per gram per dollar change. The percentage you receive of the world market price per gram is just as and maybe even more important as the gold price per gram, as you will see.
Step 3: What is my gold worth?
Ok, you should now know what the purity of your gold is from Step 1 and how many grams you have from Step 2. So what is the price per gram, and how will it affect your selling price?
Convert the world price of gold per ounce of pure gold, 24 Karat, to the purity of the gold you are selling in grams
This is a 2-step process:
First step, divide the world price of gold by 31.1
Price of gold / 31.1
Short Explanation and Example
World gold prices are quoted in Troy ounces, which weigh 31.1 grams
So, for example, if the gold price is $1050 per troy ounce,
1 gram = 1050/31.1 = $33.76 per gram of pure gold.
Second step, multiply the gold prices per gram of pure gold by the purity percentage of your gold, to get the world market price of your gold by gram
14K gold is 58.3% gold... so continuing the above example...
Multiply $33.76 x 58.3% = $19.68 per gram at the world price.
Do this for each gold purity you have identified in your gold items and enter it on the Gold Inventory Worksheet
| 10K = 41.7% || 14K = 58.3% || 18K = 75% || 22K = 91.7% || 24 K = 99.9% |
You now have the world market gold price per gram of your gold.
This is just a baseline, or starting point, in the calculation, but a very important one.
Only governments, huge institutions, and international market makers can trade gold at these prices.
Every one else will usually pay a surcharge (extra) if they are buying, or a discount (less) if they are selling. The price of gold can be affected by the quantity being traded, the costs of transporting and or storing the gold, and the demand or lack of it for gold on the world market.
When demand is high and supply is limited, prices go up. If demand is down, or there is a perceived over abundance of gold, prices go down. Most gold transactions are usually locked in at the second London fix price, but some transactions will float until a predetermined date or action occurs.
The amount of the discount you sell your gold for depends equally upon how savvy you are in understanding how the price is determined, as well as the ethics and / or the business practices of the company you are selling your gold to.
So what do you do know?
Fill out the Gold Inventory worksheet
And then go to Step 4
You should now have a better understanding of what affects the price of gold and you are now ready to shop for the best price to sell your gold.
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