Scrap Gold Tips

Scrap Gold Tips

Buying and Selling

Buying and selling scrap gold can be very rewarding. At the same time you can lose a lot of money if you do not know how. There is more to it than just buying and selling gold. We will talk about some of the things you need to know about buying and selling scrap gold.

Spot Prices

The price of gold varies constantly. The market  18kt gold tooth gems Australia goes up and down like the stock market and the price of gas does. You will need to pay close attention to gold prices. The market changes so fast that it is most likely changing as you are reading this article. If you do not know what the price of gold is, how do you know what to pay for the it? You can lose a lot of money by paying too much. When dealing with scrap gold, you will be paid based on the spot price. In other words, if an ounce of gold is worth $1,100 and you paid $1,200 for it, you just took a loss. You need to use the spot price as a negotiating tool.

Karat

You will need to know what karat a piece of gold is. Most jewelry is stamped with 10kt, 14kt, or 18kt. Basically this will tell you how much gold a piece of jewelry has in it. By knowing how much gold is in a piece of jewelry, it will tell you what the value is based on the spot price. This is very important to know when negotiating to buy a piece of jewelry.

Testing

Knowing how to test scrap gold can save you a ton of money. There is nothing worse than buying a piece of jewelry and finding out later that it is fake. A costly mistake that could have been easily avoided. You can test gold with an electronic device or you may perform a scratch and acid test to check if it is real or not. I prefer to use the scratch and acid test. It has been around for years and seems to be the most accurate. Be careful with gold plated jewelry. A magnet can help with spotting plated jewelry.

Where To Sell

You can sell scrap gold to places such as jewelry stores or pawn shops. However these places generally do not pay very much compared to the spot price. Another place that you can sell scrap gold to is a Refinery. They usually pay the highest. But you will need to research which ones pay the highest percentage of spot price.

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