In this article we cover:
2) How to Calculate the current gold price per pennyweight
3) How to calculate the pure gold content in scrap gold jewelry and how to calculate scrap gold prices
How to calculate the current gold price per gram.
When we talk about scrap gold we are mainly referring to old gold jewelry that people might be looking to sell on Ebay or at a Pawn Shop. The current scrap gold price is merely the quoted gold price that you will find on the internet. The problem is is that this price is for one troy ounce of gold. For people in Europe who work with grams and kilograms or for people selling jewelry that weighs a very little amount this can be problematic and it would be much easier if they could find out the scrap gold price in grams. Here is how.
One troy ounce of gold contains 31.1034768 grams of gold.
Lets say you have 5 grams of gold and you want to know how much it is worth.
- Go to any gold website to get the current gold price.
- Lets say the current gold price is $1375 per troy ounce. Divide the current gold price by 31.1034768
This is $44.21 per gram.
- You have 5 grams so the value of your gold or scrap gold item is 5 x 44.21 = $221.05.
How to Calculate the Current Gold Price Per Pennyweight
One troy ounce breaks down to 20 pennweights(DWT). So to find out the gold price per pennyweight simply divide the current gold price by 20.
For example you have 5 pennyweights of pure gold. The current gold price is $1375. So divide 1375 by 20.
This equals $68.75 per pennyweight.
You have 5 grams so this means your gold is worth 5x68.75 = $343.75
How to Calculate the Pure Gold Content in Scrap Gold Jewelry
For people selling scrap gold it is quite common that their piece of scrap gold is not pure gold but rather 10k, 14k, 18k or 22k gold. When gold is used for jewelry it is mixed with other metals such as copper, silver and nickel. This means that your scrap gold item is not pure gold but only a certain percentage pure gold. How can you then work out how much pure gold is in your item and then get the correct scrap gold price of it. Here is how.
- First you need to determine the gold karat rating. Get a magnifying glass and look on the jewelry item for the karat stamp. On rings for example it is usually stamped on the inside of the ring. Once you know the karat rating it is easy to work out the percentage of pure gold.
In pure gold there are 24 karats so to find out the percentage of pure gold in your item simply divide the karat rating by 24.
10 karat = 10/24= 41.67% pure gold
14 karat = 14/24 = 58.33% pure gold
18 karat = 18/24 = 75% pure gold
22 karat = 22/24 = 91.66% pure gold
Lets say you have a 14 karat ring that weighs 5 grams. To work out the current value simply:
- Get the current gold price per gram which we worked out earlier to be $44.21.
- Multiply $44.21 by 0.5833 =$ 25.79 per gram.
- Multiply $25.79 by 5 =$128.95
Its as simple as that!