Gold Pricing Basics Explained in Everyday Language
Jan 28, 2023
{
"Title": "Gold Pricing Basics Explained in Everyday Language: How Karats and Market Prices Affect Offers",
"Date": "01/28/23",
"Content": "
Understanding Gold Pricing Made Simple
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If you have unwanted gold jewelry, coins, silverware, or even dental gold, one of the first questions you probably have is: what is it worth? Understanding how offers are calculated does not need to be mysterious. With a few basic concepts—global market price, karats, purity, melt value versus resale value—you can make sense of different offers and prepare your items responsibly.
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Step 1: Global Gold Prices and What They Mean
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Every day, the global price of gold changes. This price—often called the \"spot price\"—is the price for pure 24K gold on international exchanges. You can look up the live gold price on neutral financial sites or news outlets. However, most everyday items such as rings, necklaces, or dental crowns are not pure gold.
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Key takeaway: The spot price is the starting point, but offers for your items will depend on purity, condition, and sellable parts.
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Step 2: Karats and Purity Marks
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Gold jewelry is usually made in different purities, measured by karats:
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Karat Stamp | % Pure Gold |
|---|---|
10K | 41.7% |
14K | 58.3% |
18K | 75.0% |
22K | 91.6% |
24K | 99.9% (pure) |
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Look for small stamps inside rings, on the clasp of chains, or on the back of earrings. For silver, you might see 925 (sterling) or the word STERLING.
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Step 3: Simple Tests to Confirm
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Sometimes items are not marked. In that case, you or the buyer may use common tests:
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Magnet test: Precious metals are not magnetic. If your item sticks strongly, it is not solid gold or silver.
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Acid test: A few drops of solution can check the karat. This is usually done by professionals.
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Electronic tester: Non-destructive meters can quickly identify gold purity.
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These tests help verify what you really have before applying market prices.
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Step 4: Weighing Your Items
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Buyers calculate value by weight. Using a pocket scale that measures in grams gives you accurate information. For example, a 14K gold ring weighing 5 grams contains 2.9 grams of pure gold (58.3%). Multiply 2.9 by the current market price per gram to get melt value.
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Note: Offers may be slightly less than melt value because of refining costs and business expenses.
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Step 5: Melt Value vs. Resale Value
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Melt value is the minimum for items that will be refined into raw gold or silver. If your piece is a branded designer item or collectible coin, it could be worth more than melt value to collectors or jewelers. Coins have a special factor: silver dollars, gold eagles, or commemorative coins often have both metal content value and numismatic value.
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For coin composition charts, the U.S. Mint provides exact details.
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What About Dental Gold?
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Dental gold, often from crowns or fillings, usually ranges between 10K and 18K. If porcelain or steel is mixed in, a refiner will separate it later. Safely handle dental gold in a small sealed container or bag to prevent loss of fragments. Do not try to break apart remaining porcelain yourself; professionals will weigh and process accordingly.
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Step 6: Sorting and Preparing
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To make the process smooth, consider these sorting tips:
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Group items by karat, if possible.
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Keep broken chains, small bits, and dental gold in clearly labeled bags.
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Remove obvious non-metal parts (plastic backs, stones) only if safe to do so—never force gemstones out.
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Take clear photos before mailing for your records.
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Shipping and Mail-In Kits
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Many people use secure mail-in kits for selling gold and silver. Typical process:
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Request a secure, tracked, and insured envelope or box.
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Pack items in small bags or wrap in tissue to avoid tangling or loss.
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Drop off at a shipping location and get a receipt with tracking number.
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For insured shipping options, see USPS insurance guidelines. Registered Mail offers the highest protection.
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Testing and Results at the Buyer
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Once received, items are weighed and tested. Expect clear reporting of:
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Weight in grams.
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Karat or purity.
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Calculated payout based on market price that day.
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Some companies (such as International Gold & Silver) provide a simple form, trackable package, and clear explanation of results so you understand how your payout was determined.
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Payment Methods
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When selling by mail, you can usually choose how to get paid:
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PayPal / Venmo: Fast, convenient, fees may apply depending on account.
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Zelle: Instant to linked bank accounts, limited by sender/receiver caps.
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Cash App: Quick for smartphones, optional transfer fees.
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ACH / Direct Deposit: Reliable, usually 1–3 days to clear.
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Check: Paper record, takes mailing time.
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Choose whichever combines speed, security, and record-keeping for your needs.
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Documentation and Safety
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Before sending valuables:
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Photograph each item individually.
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Weigh items with your own scale to have a baseline.
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Make simple notes including weights, stamps seen, and how you packed them.
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Using a simple record-keeping tool like GavelBase can help track your items across multiple shipments.
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Quick Checklist Before You Mail Gold or Silver
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✔ Identify stamps and hallmarks (10K, 14K, 925, sterling).
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✔ Separate items by type and karat.
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✔ Weigh in grams and write down totals.
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✔ Take photos for your records.
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✔ Pack securely in labeled bags.
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✔ Use tracked, insured shipping with a receipt.
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✔ Decide in advance how you want to be paid.
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FAQs
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How do I tell if gold is real?
Check for karat stamps, try a magnet test, or expect a buyer to confirm with acid or electronic testing.
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What is dental gold worth?
It depends on weight and karat, often 10K–18K, with porcelain or other materials factored out.
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Why is my offer less than market (spot) price?
Market prices assume pure gold. Your jewelry is only partly gold, and processing fees must be deducted.
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What’s the safest way to ship?
Use insured, trackable services like USPS Registered Mail.
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How can I get paid the fastest?<