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How Do Gold Buyers Determine Jewellery Value

At Gold Buyer Melbourne, we buy gold jewellery and offer cash for gold items of all types. As a leading gold buyer in the Melbourne area, we often get questions about the price of gold. How do we determine the value of your items when you’re selling gold?

In this article, we’ll walk you through the three things that a gold buyer or gold company will use to determine the value of your scrap gold, and give you a price per gram for your unwanted gold items. Let’s get started now.

1. The Current Spot Price Of Gold

The price of gold, like any commodity, fluctuates day by day. The current price for gold is called the “spot price,” and is usually measured in the price per troy ounce. A troy ounce is 31.1 grams of gold. If demand for gold is strong and prices are high, you will get a higher quote for the value of your scrap gold – but if the demand and market price is low, prices will be correspondingly lower. You can look at a gold party website like Gold Price to see how much gold is currently worth.

2. Total Gold Content, Weight And Purity Of Your Gold

The total gold content, as well as the weight and purity of your gold, make a huge difference when it comes to the value of your gold. A single 24 karat gold coin may be worth more than a huge bundle of gold-plated jewellery, or some decorative 12 karat items.

Pure gold is 24 karat, and most jewellery and other items are not made of pure gold, because it’s so soft. The lower the karat rating of a gold item, the less pure gold is contained in it. To determine the total gold content of your items, we will weigh your gold, examine it for marks and signs of purity, and determine its overall value.

3. Ease Of Extracting Gold From The Gold Items

Depending on how easy it is to extract gold from your gold items, you may get a different quote. If you have many different small pieces of 18 karat gold jewellery, for example, you will likely get a lower quote than you would for a similar amount of 24 karat gold – because the labor costs of extracting and purifying the gold would be higher.

So, How Much Will I Get For My Gold From A Gold Buyer?

Usually, gold buyers will pay about 70-80% of the market price for your gold, by weight. If you are selling extremely pure gold – like a 24 karat gold coin – you may get up to 90% of its market value.

If you want to weigh your gold and get a commitment-free quote for selling your gold in Melbourne, we recommend that you come into Gold Buyers Melbourne right away. We’re always happy to weigh your jewellery and scrap gold, and provide you with a quote for its value, based on today’s market prices and spot value! Get started today.