What You Need to Know When You Want to Sell Gold for Cash
There are all sorts of reasons people might want to decide to sell gold, such as inheriting a gold coin collection, getting rid of unwanted jewelry pieces, or having confidence in the current economic conditions. Before you sell gold, it is important to understand the intricacies of this market and how it affects gold prices and the amount you are being offered to sell your gold.
First and foremost, gold prices fluctuate daily, sometimes hourly, based on the market’s supply and demand. This means when prices of gold are up, so, too, is the value of items made from gold. Conversely, when market rates are down, so is the value of items made of gold.
How Karats Determine the Purity of Gold
One of the most basic concepts you need to understand is how karats affect the purity of gold. Some people think that the lower the karat, the more valuable the gold. However, this is not the case. The easiest way to remember how pure your gold items are is the higher the karat rating, the more gold it contains.
To give you a generalized breakdown of how karats relate to purity, consider the following:
- 14K gold contains approximately 58.33% pure gold.
- 18K gold contains 75% pure gold.
- 24K gold is 100% pure gold.
However, you do need to be careful, as not all jewelry and coins are created equally. It is not uncommon for some people to have a piece of jewelry or coin which has 24K gold plating on the exterior.
Granted, this is considered 100% pure gold, but that does not necessarily mean the entire piece is made of 24K gold. Once the gold plating is removed, underneath there could another type of precious metal used, like silver, zinc, or even copper.
Troy Ounce vs. Pennyweight vs. Grams
Another essential concept you should understand when you want to sell gold for cash has to do with how the weight of the gold is determined. There are three different weights used to value gold:
- Troy Ounce
How these three relate is:
- 1 troy ounce = 20 pennyweights = 31.1 grams.
Many gold buyers will use pennyweights as the standard of measurement, but it could result in you not getting as good of a deal on your gold as you would if you selected a buyer who uses grams to value your gold.
Equally important, it is worth noting that troy ounces are more than a standard ounce. One troy ounce = 31.1 grams, while one standard ounce = 28.35 grams. In addition, you should know:
- 55 grams = 1 pennyweight
- 643 pennyweights = 1 gram
Why this might sound a bit confusing, we will look at an example to better illustrate the concepts on how to sell gold and how the measure of weight used affects the amount you are offered. Let’s assume you have exactly 31.1 grams of 24K gold you want to sell.
You go to one buyer, and they value their offers to purchase your gold using pennyweights. Based on the rate of gold at that time, their offer price is $30 per pennyweight.
- $30 x 20 pennyweights = $600
Next, you take your gold to a buyer who bases his or her offer to buy your gold using grams. The buyer makes an offer to pay you $25 per gram of gold based on troy ounces.
- $25 x 31.1 grams = $777.50
As you can see, while the $30 per pennyweight might sound more appealing, initially, because it sounds like you are getting paid more, in reality, valuing gold based on grams nets you a higher payout, since you already know that 20 pennyweights = 31.1 grams.
TIP: When you are considering selling your gold, look for places that base their offer price on grams, not pennyweights because using grams (per troy ounce) is the most honest method to value gold.
Karats Plus Weight in Grams Equals the Value of the Piece
Arriving at a value for your gold pieces requires using both karats and the weight of the gold in grams (per troy ounce). To begin with, the gold needs to be sorted by karats so it can be valued correctly.
Some buyers do not do this and will simply make a “rough estimate” based on the lowest karat gold contained within the piece. Using this method is not fair to you because you are not getting the true value of the piece.
- Step 1: Sort each piece by karat.
- Step 2: Weigh each of the sorted pieces of gold in grams.
- Step 3: Calculate the value of the gold.
When it comes to calculations, the percentage of pure gold is multiplied by the current daily offer rate to arrive at an offer price. To illustrate, using our previous example offer price of $25 per gram (per troy ounce), let’s assume you now have the following karats and weights of gold you want to sell:
- 20 grams of 24K (100% pure gold)
- 15 grams of 18K (75% pure gold)
- 25 grams of 14K (58.33% pure gold)
First, we would need to multiply $25 by the number of grams:
- 20 grams x $25 = $500
- 15 grams x $25 = $375
- 25 grams x $25 = $625
Next, we would need to multiply the dollar amount by the percentage of gold in each:
- $500 x 100% = $500
- $375 x 75% = $281.25
- $625 x 58.33% = $364.56
Last, we would add the three amounts together ($500 + $281.25 + 364.56) to arrive at an offer price of $1,145.81.
TIP: Please keep in mind, the dollar amounts and values used in these examples are merely for illustrative purposes only. The value of your gold is determined by several factors, including current market rates.
Where Is the Best Place to Sell Gold for Cash?
Contrary to popular belief, those local pawn shops that advertise they buy and sell gold are not the best place to sell your gold. This is because they deal with people who are selling their gold when they need money quickly and are willing to accept just about any offer price made.
As a result, this often translates to the sellers not getting a fair market rate for their gold pieces. In addition, their methods of appraisal are not always accurate or performed by a trained precious metals appraiser. The best place where to sell your gold is to find a trusted and experienced buyer, like us, here at Sellwizer.
We have developed a truly unique, no-pressure, no-hassle buying process to value your gold. You simply fill out our online form or contact us via phone to request a free FedEx label to securely and safely send us your gold pieces.
Shipping gold pieces, coins, and jewelry through FedEx is completely safe. We have established a long-term relationship with them and find their shipping service is trustworthy and reliable. Upon arrival at our facility, we record and track your package at every step.
Prior to opening the package, our video cameras start rolling to document the entire process. We separate each piece by its karat and then weigh it individually to ensure you get the best offer possible.
The video we make includes the appraisal of your items, which is sent to you via email to review, along with the offer price. At this point, you have 48 hours to decide if you want to accept the offer.
If you decide you want to sell your gold, we will work with you to finalize the transaction and send you your payment. If not, we gladly pay to ship back all of your gold pieces to you through FedEx—no hassles whatsoever.
Since we offer this service online, we are able to keep our operational costs lower, compared to brick-and-mortar gold buyers, which means our offers are almost always consistently higher. We understand you have options when it comes to selling your gold.
We believe our process is not only efficient but also provides our clients with an easy way to sell gold online for the best prices. If you have further concerns or questions about selling your gold, do not hesitate to contact us directly by calling 616-575-9158 to speak with one of our certified gold specialists today!