During global recessions and when markets fail you, you might have already heard that gold will save you. Because gold’s price only appreciates, many people choose to invest in gold for security especially in times of crisis. To be certain that the gold you’ve bought is your true safety net, you must determine the value of gold with an authentic method. Here are just some ways to verify and check the value of your gold accessories.
- Determine the Melt Value
One of the ways to determine the value of your gold accessories is to find out the melt value of it. To do this, you must determine the weight of your gold accessories in grams. Afterwards, you need to know the purity of each piece as well. Get the current price of gold per gram. Then, multiply the weight by purity by the market price of gold per gram.
To illustrate, if you’ve gold accessories weighing 100g with 50% purity and gold price of $100 per gram, multiply them together. You will get a price of $5000 for your gold accessories. This is a large amount especially since gold in an ira may also provide you protection against financial crisis.
Another popular gauge for the value of gold is the purity of gold. If the word “karat” rings a bell, then you’re on the right track. The quality or purity of gold is usually measured in karats. It ranges from a scale of 1 to 24, with 24 being the highest and purest form of gold. If you’ve gold accessories, the box or label will usually tell you the number of karats of your gold accessories.
At times, the label is not in the form of “24k.” There are times when you see a label with solely a number. For instance, your gold may shoe a number 375. That means, your gold accessories have 37.5% gold content, which is also equivalent to 9k. Once you get to determine the karats, you can easily get the value based on market price.
For each karat, there’s a corresponding percentage of gold purity. To guide you, here are some common conversions.
- 24 karats are equal to 100% of gold – 24k gold is the highest and purest form of gold. It’s too soft for fine jewelry.
- 22 karats are equal to 91.7% of gold – 22k gold are usually not used for fine jewelry because they’re too soft. Although, this is still worn in some cultures as jewelry.
- 18 karats are equal to 75% of gold – This is considered to be luxury with regards to fine jewelry.
- 14 karats are equal to 58.3% of gold – 14k gold is the ideal purity of gold for fine jewelry as it strikes the balance between value and wearability.
- 10 karats are equal to 41.7% of gold – 10k is a bit low when you talk about value, but it’s still very wearable as jewelry.
- Market Rate
If you’re selling your gold accessories, there’s a high chance that you won’t get them at market rate. Instead, you’ll get them at a lower price as compared to market rate. Pawn shops, jewelry stores, gold dealers, or cash-for-gold companies usually price it at a lower price to make a profit when they resell the gold. They also need to protect themselves from market price volatility. That’s why the price is lower.
So, to know the selling or going price of your gold accessories, you can go to the nearest jewelry store or pawn shop to get a more accurate quotation for your gold accessories. They’ll be able to give you a benchmark that correctly reflects the value of your gold accessories.
- Compare with Different Dealers
Gold accessories can value in price from one dealer to another. To get a good picture of how much your gold accessories are truly worth, you need to scout for quotations from different dealers. It’s ideal that you get an opinion from different dealers so that you can sell your gold at a higher price. In times of crisis, you need to be smarter about how you handle your assets.
It’s important to understand how gold is rated according to its purity, how it was measured, and how the market prices it. All these play a role in determining the intrinsic value of gold and how it will be useful to you. Keep in mind the methods above so that you can assess your gold accurately and sell it for its current value. So, what are you waiting for? Go grab that perfect 24k gold jewelry set for your next event!