Survival guide - Buy and sell scrap gold jewelry for investment and quick cash

Tuesday, January 24, 2012 by: JB Bardot
Tags: buying, gold, jewelry

(NaturalNews) Gold has historically been a safe haven when financial times are tough, and these days are no different. Some people prefer buying gold coins or for investment, storing it in a safe or burying it for safety's sake. There's another way to own gold and use it for easy commerce - in jewelry. Not only is gold jewelry easy to buy and sell, it's also fun to wear. The uninitiated may get intimidated trying to buy and sell gold jewelry in ways other than at a jewelry store - where buyers pay top dollar. For the adventurous, trading gold jewelry is an excellent method of holding hard assets, protecting your investments and accessing easy cash.

Know the Spot Price

Before starting to buy or sell gold jewelry, learn the spot price. Gold markets around the world set the gold spot price daily, which is easy to find on websites like Kitco.com. The spot price is the cost of one troy ounce of pure, 24K gold.

Calculate the Value

Whether buying or selling gold jewelry, you need to ascertain the value in grams, which is calculated by its weight and the spot price. Use a gram scale to weigh the jewelry. Remove stones first. Check the karat stamped on the item or with an acid test. Gold jewelry purity is designated by the karat, or percentage of pure gold contained in each item. The amounts are calculated in percentages, with 24k gold being 100 percent or .1000. Use this chart for the most common karat percentages:

10 karat = .4167
14 karat = .5833
18 karat = .750

Divide the daily spot price by 31 to find the gram price of pure 24K gold. Then multiply the gram price of pure gold by the percentage in the guide above depending on the karat to find the price per gram, called the scrap price. For example, if gold is selling at $1650 per troy ounce and the jewelry item is 14K and weighs 5 grams, here's what that formula looks like:

$1650 divided by 31 = $53.22 X .5833 = $31.04 per gram of 14K gold X 5 grams = $155.22 total scrap value.

Buying and Selling Gold

Buying scrap gold is fun and makes a great hobby. Look for gold jewelry at flea markets, yard sales and auctions. For those who are more experienced, buying online at places like eBay are often excellent venues for a good deal. Always take a small gram scale on buying trips and a jeweler's loupe to check the item close up. Check the daily the price of scrap gold before going shopping.

People wanting to sell their scrap gold jewelry for fast cash can do so at places like pawn shops, eBay, auction houses and to jewelers who buy scrap gold. Knowing the scrap value gives you the advantage of being able to negotiate when selling their jewelry. Most buyers won't pay full value for the gold, so expect to get about half or less of the actual value. It's best to avoid selling gold by mail because of unscrupulous buyers who take advantage of people who are not sure what they're doing.

Resources for this article include:

Gold Price: Buy Gold
http://buying-gold.goldprice.org

LenPenso.com: Evaluate Your Options Before Selling Gold Jewelry: http://www.lenpenzo.com

Kitco.com: 24 Hour Spot Gold www.kitco.com

WikiHow: How to Calculate the Value of Scrap Gold
http://www.wikihow.com/Calculate-the-Value-of-Scrap-Gold

About the author:
READ MORE OF JEAN (JB) BARDOT''S ARTICLES AT THE FOLLOWING LINKS:

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JB Bardot is an herbalist and a classical homeopath, and has a post graduate degree in holistic nutrition. Bardot cares for both people and animals, using alternative approaches to health care and lifestyle. She writes about wellness, green living, alternative medicine, holistic nutrition, homeopathy, herbs and naturopathic medicine. You can find her at The JB Bardot Archives at www.jbbardot.com and on Facebook at https://www.facebook.com/jbbardot23 or on Twitter at jbbardot23 or https://twitter.com/jbbardot23