Gold Scrap Calculators: Here’s Why They Don’t Work
Gold holds the distinction of having intrinsic value and it is one asset that can provide money immediately during times of need. Many jewelry sellers and pawn shops use gold scrap calculators to assign a ballpark gold price. Often, these calculators do not show the exact value of the gold and may favor the buyer rather than the seller. It is thus important for sellers of gold to get a peek behind the scenes.
You should be well prepared, with a solid understanding of the value of your gold when you‘re selling scrap gold. That is what this guide aims to help you with.
Scrap or new, gold is always in demand. The value of gold rarely goes down. If you have come across the word scrap gold often, but still don’t know how it is different from regular gold, here is a quick look.
What is Scrap Gold?
Scrap gold is gold that is sent to be melted down or recycled. It no longer serves the purpose it was molded for and doesn’t have design value. This includes broken or damaged gold accessories, gold coins, gold bullion, or industrial by-products from gold refining.
Scrap gold is usually bought by gold jewelry stores and refineries. The value of the raw material is then restored so it can serve a new purpose. In other words, gold is used to manufacture something else. Any gold that is meant to be reprocessed or repurposed is scrap gold.
Although the term ‘scrap gold’ may sound dull and unexciting, unlike other scrap goods and assets that depreciate up to around 5-20% of their value, scrap gold retains all its material value except the making charges, thanks to the value of its gold content.
This essentially means that scrap gold is a great asset to fall back on when you need immediate funds.
Scrap Gold Price: What are the Key Determinants?
Total weight and gold purity determine your scrap gold worth. Having said that, if there are other valuable or hazardous materials in the scrap, the value changes accordingly.
The weight of scrap gold is commonly measured in troy ounces, where one troy ounce equals 31.1 grams (one gram = 0.032 troy ounces). Similarly, one regular ounce equals 28.34 grams.
Since gold is a pivotal element in the commodity market, its spot price (the current gold price), varies every day depending on changes in the economy. Over time, however, the price of gold tends to increase, making it one of the safest assets to invest in.
Purity is also an important parameter in commodity valuation. It reveals how much of the scrap is actually made of the raw material in question. Usually, manufacturers add other metals to gold accessories and jewelry in varying ratios to get different results in appearance and strength.
You may have come across the word karat often used when talking about gold. Karats measure the purity of gold. Pure gold will have 24 karats; the number decreases as the ratio of gold in the accessory decreases.
Why are Gold Scrap Value Calculators Inefficient?
Let’s say you have an old damaged 14 karat bracelet that weighs 48 grams and you want to measure the value of the scrap. Here is how a gold scrap calculator would determine its value.
Purity = Number of karats/24*100
In our case,
Purity = 18/24*100 = 75%
Now, you need to find out the enter weight of the scrap gold.
Weight of gold = 48 g*75/100 = 36 g.
The current pricing for pure gold per gram is $58.
This means the scrap gold has a market value of $2088.
However, this doesn’t guarantee that you’d get that amount when selling. Brokers and gold dealers usually charge a 20%-40% discount on scrap gold, As compared to the market value, to allocate for recycling and repurposing after charging their profit.
And here are two reasons why the gold scrap calculator formula used by the above method is wrong.
Doesn’t Leverage XRF Technology
The X-ray Fluorescence (XRF) test analyzes samples to assess the amount of gold, non-gold, and precious metals like palladium they contain. It also determines the presence of alloys or undesirable elements that could have a bad impact on the user. When scrap gold calculators don’t take into account the results of the XRF test, the value they determine could be wrong.
Doesn’t Account for Non-gold Precious Metal Value
When you sell scrap gold, like an old earring or a necklace, buyers are not really keen on their resale value. They don’t care about what condition they are in. The weight and purity of the gold, along with the value of the studded gemstones, if any, are what matter on the journey towards repurposing.
If you are planning to turn to your scrap gold in times of emergency, don’t settle for anything less than its market price. Maybe you have a pawn shop or a second-hand jewelry store just across the street and you are tempted to walk in there to get rid of your assets as fast as possible. However, this doesn’t guarantee you the best prices. They may take advantage of the emergency situation and offer you a low payout.
Find a scrap gold buyer that offers transparent services. The reviews and ratings on Google Business or local business directories will reveal the quality of their services.
How does Vasco Calculate Gold Scrap Value?
Vasco Assets is one of the leading luxury asset sellers and buyers in Phoenix that possesses immediate access to outstanding capital reserves. Although we are based in Arizona, we offer our services across the globe. All you have to do is get in touch with us through our Sure Secure shipping services.
Our team of appraisers follows a scientific set of procedures for commodity valuation, guaranteeing you the best price for your scrap gold. We implement XRF technology to determine the accurate amount of gold in scrap. Vasco XRF analyzers trace the presence of gold, silver, and platinum along with rare metals like osmium and ruthenium.
We take the value of these metals into account when determining the total value of the asset. The test also detects the presence of harmful elements or coatings. Cutting-edge spectrometers measure the accurate karat and weight. Moreover, being a non-destructive technology, the XRF test ensures that your gold does not lose value during testing. The test does away with the need to use chemical fire and other means of testing that could potentially bring down the value of the scrap.
Get the Best Price for Gold Scrap with Minimal Payment Delay
From appraisal to documentation, Vasco Assets will assist you in getting a fair price for your scrap gold. We leverage multi-national networks and luxury asset capital to give you money in hand when you need it. We also offer custom loans on a wide range of luxury assets including scrap gold.
Reach out to us today at 949-679-2300 for a free scrap gold valuation within 24 hours. No strings attached.