Step 4: How Much Is Gold Worth Today?
Okay, we've come a long way. Now is the time to determine how much is gold worth today.
- Step 1 you have determined the purity of the gold
- Step 2 you have determined the weight of the gold
- Step 3 you know the world price of the gold you have
- Step 3.5 you have organized your information by printing and filling in My gold Inventory worksheet
So…how much is gold worth?
Realistically, determining how much is gold worth, or how much anything is really worth, is determined by how much you can actually sell it for.
If you have an item that you can’t sell, no matter what it is supposedly worth or appraised for, as a practical matter it is worthless (unless you can borrow against its value). The cool thing about gold is that is has intrinsic value (See definition) and can always be sold. However, how much you sell it for is mostly determined by how well you understand the process. This is where the fun part begins. This is how you find out how much is gold worth.
You are now ready to intelligently shop for a fair selling price for your gold, however, It is a good idea to read Where Not to Sell Gold and The Magic Question before you actually start shopping around
The Selling Process
Understanding the selling process will affect and ultimately determine how much you will sell your gold for.
The Internet combined with your telephone has never made it easier to shop-around for prices of almost anything, especially gold buying offers.
Here is a typical example of the process
Tip: You should always contact a minimum of 3 to 4 companies to compare prices and terms and conditions before picking one to do business with.
Let’s say you have 22 grams of 14K gold to sell.
Call anyone you find in the yellow pages or on the web that advertises they buy gold, and ask them how much they pay for 14K gold. (Or the gold purity that you have the most of.) Typically, the buying price for other purities will usually be similar in relative value to each other. (See the Magic Question)
Most companies will not give you a straight price at first, if ever. They will usually say the price is determined after they are able to assay (See definition) or test your gold and determine for themselves how much is gold worth on that day. They might also mention that how much gold you are selling helps determine the price.
At this point you can differentiate yourself from 90% of the other people who they talk to by telling them that you have approximately 22 grams of 14K gold, and what will they pay for it at today’s price of gold? At this point, do not be surprised if they tell you that they only buy in pennyweights and not grams. The gold buying and jewelry business always like to throw this at you because it is not as easy for most people to think in pennyweights, since they never ever have to do it.
Ask the salesperson to please speak to you in grams. If they won’t, they are usually just being arrogant (not a positive sign) but this is not a deal breaker. I like to deal in grams; it usually means one less calculation.
Since you are prepared, you know that 22 grams of gold converts to 14.1 (dwt) pennyweights (look at your worksheet) and ask him what they pay for 14 dwt of 14K gold. At this point, if they will not quote how much is gold worth per gram or pennyweight, you should end the conversation and look elsewhere.
The business model of this company does not include doing business with customers who are educated about the process, and probably means that their prices are not competitive and suggests, at least to me, that their business ethics might be questionable. However, it is perfectly legal (unfortunately) for a business to not quote prices on the phone. Did you know that by law, gas stations must post their prices on a sign visible to passing cars?
Now, it is possible they might ask you what price you are looking for. You should tell them you want a fair and competitive price and that is the reason you are shopping around.
If you are quoted a price, make sure that you note 2 things.
World price of today’s gold: ________
Price per gram (g) or pennyweight (dwt)________
Write these down on your worksheet
Ask what the process involves for you to sell to them and what their terms and conditions are for doing business. Also, get their prices for other purities of gold if you have them to sell.
Among the most important questions to ask are:
If it is a local business, can you watch them weigh and test the gold you are selling? You do not want someone to go in a back room with your gold to weigh and test the purity.
Will they give you a written quote telling you what the purity, weight and buying price is that you can take with you if you are not ready to sell?
If they will not, go elsewhere
Will they buy the type of gold you are selling? (See What Kind of Gold Can I Sell)
How and when do they pay?
Most gold buyers will pay you on the spot in cash or check.You always want to check out the reputation on anyone you sell gold to. Do not take a check from a company that is not registered with the local authorities or is not known to you personally
Can you change your mind after the sale, and if so, for how long?
Most local and state governments require gold buyers to keep your gold for 10 to 14 days and report the purchase to the local police so they can check if the gold has been reported lost or stolen. Most gold buyers will return your gold during this waiting period
Will they return any items that are not gold?
Do not be surprised if some of the items you expected to sell are rejected by the gold buyer. You should always have any rejected items returned to you.
Will they itemize your gold by weight, purity, and price per gram or just give you a lump sum offer?
Most companies will do this on their quote sheet.
What type of ID are you required to bring in?
Most local and state governments require two forms of government issued id.
If it is a mail order or Internet business, you should ask the following:How do insurance claims work should there be a need for one if the package is lost or the contents go missing?Can you track your shipment?Will they buy the type of gold you are selling? (See What Kind of Gold Can I Sell?)
- Who pays for shipping and how much is the shipment insured for?
Will you be given an offer price that you can accept or reject, or given a written quote for your consideration?If you reject the buying offer, are there any fees for the items to be returned to you?Will returned items be insured and for how much?Will you be told how much of each purity of gold you have or will you just be quoted a lump sum offer?
The first one or two calls are always the most confusing and stressful, so it is a good idea to call one or two companies that don’t sound very promising at first glance to practice with. Save the one you were thinking of doing business with for last.
Now, repeat this process with at the very least 3 to 4 companies. When you are finished, you will hopefully have a range of prices and policies to review and evaluate. You will have a good idea of how much is gold worth today.
But, remember, the price of gold changes every day. You have the tools on this site to help you determine how the fluctuating price of gold will change the gram and pennyweight price up and down, but this can get a little confusing when you are ready to sell.
The offer price will go up and down, but there is one thing that never has to change when you are comparing the offer price, from day to day, from dealer to dealer, from price to price, and that is what percentage will the buyer pay for you gold?
This is a constant.
This is the Golden Question.
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