Gold value is simple when dealing with pure gold such as bullion or coins, but what about scrap?
The following formula is used throughout the trade to estimate the approximate scrap/melt value per pennyweight for each particular grade of gold.
18k – spot price X .0347 = price per dwt
14k – spot price X .0269 = price per dwt
10k – spot price X .0195 = price per dwt
Example – If today’s spot gold price is $900 and you want to determine the value of one pennyweight of 14k scrap, you would multiply $900 X .0269, which would result in $24.21 per pennyweight. For value per gram just divide the value per pennyweight by 1.555, which would be $15.60 per gram.
Word of caution – BE SURE YOU ARE WEIGHING IN THE SAME WEIGHT THAT YOU ARE APPLYING THE FORMULA TO.
A commonly made mistake is to weigh the gold in grams and multiply it by the pennyweight price, or vice versa. This can be costly!
Once you determine the gold value, you can then decide how much you wish to pay for it. But before making your offer, be sure to learn and apply my advice on making the offer, it works!
