Calculating the Gold Price per Gram
When calculating the gold price per gram the process comprises some simple steps that must be followed in order to get to a fair result. I am going to present you exactly what you have to do when it comes to evaluating the exact value of your scrap gold.
Before starting this adventure, first thing to be done is to establish the purity of your gold. When I say that, I mean that you must determine if you have gold of 10 carats, 14 carats, 18 carats, or 22 carats. You should find the gold purity inscribed on the piece of jewelry or whatever form in which your gold is found.
An exception to the first step in calculating the gold price per gram is made by the gold coins which have a higher value than the intrinsic value of their gold content. When it comes to evaluating gold coins you should keep in mind that you will get a high premium over the price of gold.
The second step in calculating the gold price per gram is the weighing of the gold found in your possession in different form which excludes the gold coins. When weighing your scarp gold you should make it based on the categories established in the basic step of this process, highly detailed above. If you desire a really accurate result you might want to purchase a scale that is used by jewelers. However, if you do not desire making such an investment then you should simply settle for a food scale. In the case of a scale that weighs in ounces, make a simple transformation taking into consideration that 1 ounce= 28.3495231 grams.
The third and final step in calculating the gold price per gram is to find out the exact gold price for that day. I especially mention that day because the price for gold changes daily and this will determine the moment when you will sell your scrap gold and for which you are calculating the gold price per gram. This price is divided by 31.1. This is the actual gold price per gram but the process does not end here.
What you have to do next in finding the gold price per gram is to divide the purity of your gold by 24. The results are the following: 10k/24 = .4167; 14k/24 = .5833; 18k/24 = .750; 22k/24 = .9167. These numbers will be multiplied with the gold price per gram obtained above.
Reasons for Calculating the Gold Price per Gram
The main and obvious reason for calculating the gold price per gram is to know exactly how much we should get if we take our gold to a scrap gold dealer’s counter. This way we will not get an inferior value for our gold.
Since the global financial crisis the gold price has increased which has determined many people to sell their gold and before selling it people should know exactly the value of the gold price per gram to be sure that they are selling the scarp gold at the most appropriate moment.
Example of Calculating the Gold Price per Gram
Let’s assume that we are in the possession of 3 grams of gold with a purity of 22 carats. We find out that the gold price per gram is 1,700 US dollars. Accordingly to the steps above we divide 1,700 to 31.1 and we obtain the result 54.66 which is the actual price per gram. This number 54.66 is multiplied with 0.9167 (22k/24). The result is 50.10 which will be multiplied with 3 because we have 3 grams leading us to the final result of 150.30 US dollars.
It is always easier when there is also an example so I have provided you with one in the last part of this article about gold price per gram.