Selling Gold Jewelry:
The Magic Question

Sell Gold Jewelry

When selling gold jewelry or any other form of gold you might own, there is one magic question you must ask that will shift the odds of getting top dollar for your gold:

What percentage do you pay for gold?

If your buyer will answer this question, and you can confirm the answer is accurate, or even if your buyer will not answer the question but you can figure out the answer, you will understand the process of selling gold jewelry.

No matter what the price of gold or the purity of gold, anyone that offers to buy gold from you can answer this question, but they hate doing it. Why is that you might ask?

Because if you are smart enough to ask the question or to figure out the answer to the question based upon any price quote they give you, they know it is easy for you to shop around and get the best price for your gold. This means they lose the sale or make less money buying from you. How can that be?

No matter what the price of gold, or the purity, a refinery will quote a buying price based on a percentage of the purity of the gold, and so can any other gold buyer that chooses to do the same.

This is the little know fact that takes the mystery out of selling gold jewelry.

Most of the gold you sell will ultimately end up being sold to a refinery, or a company that will extract the gold content from your gold items, and condense it into gold ingots that they will resell to banks or manufacturers. Unless you are selling gold ingots or coins, refineries are the top of the heap in the gold buying food chain.

The percentage never changes based on the fluctuating gold price or the purity of the gold. Sometimes there is a surcharge for smaller amounts of gold under 1 troy ounce but the percentage does not fluctuate with the price of gold. Sometimes you are paid a higher percentage for a larger quantity of gold, say over 5 ounces or over 25 ounces, but the percentage does not fluctuate with the price of gold.

For a minute, forget about the daily fluctuation of gold, or the different purities of gold, or grams or pennyweights or troy ounces, its just all gold….so….I ask you…Would you rather sell your gold for 25% or 50% of the value of the gold content?

Would you rather sell your gold for 60% or 80% of the value of the gold content? In the end, it’s just that simple.

So how do you figure out what percentage you are being paid for your gold?

Simple arithmetic will show you the way

Understanding this simple calculation is the easiest and best way to compare prices when selling gold jewelry or any other form of gold:

Gram price offer calculations
First figure out the intrinsic value of the gold

Multiply the price of gold X purity
Divide answer by 31.1
Result is the intrinsic price of gold by gram
Then Divide the Offer price / by the intrinsic price

Example
You are selling 22 grams of 14K gold
Gold is $1100 toz (troy ounce)
You have been offered $13.00 a gram
What percentage of the price of gold have you been offered?
$1100 X .583 = $641.30
641.30 / 31.1 = $20.62
Offer price is $13.00
Percentage offer is $13.00 / $20.62 = 63%

Pennyweight price offer calculations
First figure out the intrinsic value of the gold

Multiply the price of gold X purity
Divide answer by 20
Result is the intrinsic price of gold by gram
Then Divide the Offer price / by the intrinsic price

Example
You are selling 22 grams of 14K gold
22 grams = 14.14 pennyweights (dwt)(calculation 22 / 1.555)
so you are now selling 14.4 pennyweights
Gold is $1100 toz (troy ounce)
You have been offered $17.00 a pennyweight
What percentage of the price of gold have you been offered?

$1100 X .583 = $641.30
641.31 / 20 = $32.07 (intrinsic value of 1 pennyweight of gold at $1100 an oz)
Offer price is $17.00 a pennyweight
Percentage offer is $17.00 / $32.07 = 63%

We offer Gold Selling Calculators and you can access them by clicking on this link.

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