Gold has long been a material used to store wealth. It’s bought and sold throughout the world, and though its value may change over time it’s always been considered a precious metal with a high monetary value. Once you’ve converted your wealth to gold, however, you’ll need to convert it back again to gain use of it in most areas. Since it’s a marketable asset, you’ll need to do a bit of work to get the best value for your gold holdings. As with any other asset sale, the more you prepare for the sale, the greater your likelihood of receiving what your assets are actually worth.
Separate the gold that you intend to convert into paper money into two categories: known purity and unknown purity. Known items will usually bear a mark as to its purity, known as the karat rating of the gold. Separate the known purity further, categorizing the gold according to karat level--from 9 karat gold containing 375 parts gold per 1,000 to 24 karat gold which is 999.999 parts per 1,000 pure gold.
Take the unknown samples to an independent jeweler, laboratory or mint to have it tested for purity. Once identified, add these pieces to your categorized piles.
Weigh the gold as precisely as possible by categorized purity. Note the weight of each category in troy ounces.
Locate the market value of gold per 24 karat ounce by checking the financial section of a newspaper or with financial websites such as MSN Money or Yahoo Finance. Estimate the market value of your gold by multiplying each ounce of 24K gold by the market value of gold for the day. Discount lessor purities of gold according to the percentage of gold by weight and multiply the discounted amount by the market value. Use a rate of 75 percent for 18K, 58.3 percent for 14K and 41.7 percent for 10K gold. Add the total worth for each category to find the market value of your gold.
Take the gold to a jeweler or coin dealer who purchases scrap gold for conversion into paper money. There will be a fee for selling your gold, generally between 10 to 20 percent of the market value. Contact multiple buyers to determine the best price you can get for your gold.
Have your gold jewelry appraised for its value before selling at the gold scrap rate in case the workmanship or age increases its worth.
- MSN Money: How to Sell Your Old Gold Jewelry
- Bankrate: Old Jewelry Worth its Weight in Gold?
- Reuters. "Tiny Bead From Bulgaria May be World's Oldest Gold Artifact." Accessed April 24, 2020.
- Federal Trade Commission Consumer Information. "Investing in Gold." Accessed April 24, 2020.
- Apmex. "Live Gold Price Charts and Historical Data." Accessed April 24, 2020.
- Yahoo! Finance. "Gold Jun 20 (GC=F) Historical Data." Accessed April 24, 2020.
- Yahoo! Finance. "Gold Jun 20 (GC=F)." Accessed April 24, 2020.
- Macrotrends. "Gold Prices - 100 Year Historical Chart." Accessed April 24, 2020.
- Have your gold jewelry appraised for its value before selling at the gold scrap rate in case the workmanship or age increases its worth.
Larry Simmons is a freelance writer and expert in the fusion of computer technology and business. He has a B.S. in economics, an M.S. in information systems, an M.S. in communications technology, as well as significant work towards an M.B.A. in finance. He's published several hundred articles with Demand Studios.