Gold Prices (Part 1) – Understanding The Value of Gold

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Now that you know how to set your business up, it’s time to learn gold prices and the value of gold. Right now, I’m going to give you a basic overview, and then I’ll go into greater detail later in this module.

Let’s begin by looking at how gold is priced.

00:22 Pricing Gold

Gold prices are based on the troy ounce. A troy ounce of gold contains 31.1 grams, while a standard ounce contains 28.3 grams. Thus a troy ounce is slightly heavier than a standard ounce is.

The going rate for a troy ounce of gold is referred to as the spot price. The spot price refers to the price that gold can be bought and sold for at a specific time. Spot prices are a lot like the stock market. They can change throughout the day. However, gold is relatively stable, so the changes aren’t usually really big.

When someone brings you gold, you will have to determine the karat content and
the weight of the gold to actually find out how much gold you have. Once you do
that, you can determine the spot price for the amount of gold that you have.

With that in mind, let’s take a look at karats. Then, I’ll go over weighing the gold.

01:08 Karats

Karats refer to the purity of gold. Twenty-four karat gold is pure gold. Pure gold is
malleable, which means it’s easy to bend. Because it’s so soft, it usually isn’t used by
itself. Instead, jewelers usually mix gold with other metals. Then, they look at the
ratio between the gold and other metals to determine its karat value.

You will need to determine the gold’s karat value in order to know how much gold
the item contains.

02:04 Determining the Karat Value

There are a couple of things you will do to determine the karat value. First, you will
use your jeweler’s loupe to look for karat markings. Most jewelers stamp the karat
value on the jewelry

Looking at a marking is just a starting point, though. There are counterfeit items
out there, so you will also have to run some tests. You can run an acid test or use
your thermo-electronic device to test for the purity of gold.

The test will show you what the karat of the gold is. Then, you’ll need to determine
what percentage of gold you have.

02:40 Karats and Gold Percentages

As I mentioned earlier, 24 karat gold is pure gold. That means if you have
something that is 24 karat gold, it is 100% gold. There aren’t any other materials in
the item.

If you have gold with a lower karat content, you will need to divide it by 24. For
example, if you have 12 karat gold, you will divide 12 by 24. That will tell you that
you have 50% pure gold.

If you have 10 karat gold, you will divide 10 by 24. That would give you .4166 or
41.7% pure gold.

You need to figure out the percentage of gold the item contains after you test for
karats. Then you will need to weight the gold.

03:35 Weighing the Gold

Once you do the karat test, you will know how pure the gold is. However, you won’t
know how heavy the gold is, so you won’t know how much gold you have.

With that in mind, you will need to use a digital scale to weigh the gold. Once the
gold is weighed, you’ll do some math to determine how many grams of pure gold you
have. Then, you do some more math to find out how much the value of gold is. I’ll
talk more about this later in this module.

To learn more about gold prices and the value of gold visit our website at http://www.profitwithgold.com or visit our YouTube Channel home page at
http://www.youtube.com/subscription_center?add_user=profitwithgold

To watch the next video in this series Gold Prices (Part 2) – How To Test Gold go to http://www.youtube.com/watch?v=fnuI7PgphuM
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How much is your gold jewelry worth?

This gold calculator will determine the value of the gold metal inside your gold bullion, numismatic coins, or jewelry. Simply enter the amount, purity, and price into the calculator to get the value of your gold metal. Live gold prices in eight major currencies are shown on this page. Non-live gold prices in many other currencies are shown below the footer notes of the calculator. If you are interested in selling please be aware that bullion dealers and scrap jewelry merchants often do not give you one-hundred percent of the market value of the metal; if you know what percentage they offer, you can adjust the percentage of market value at the bottom of the calculator to predict the offer you are likely to receive from them. If you need help using the gold metal calculator, please refer to the footer notes below the calculator.

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