What determines the scrap gold value?

What exactly determines the scrap gold value? Does the actual condition of the gold have anything to do with it.

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Jan 01, 2011
More on the value of scrap gold...
by: Gold Beginners

Mr Anonymous is correct. It's primarily the grade that determines the value. The reason is that the grade reveals exactly how much of the weight of a piece of scrap is actually pure gold.

For example: 14k is also .585 which means it contains a little over 58% pure gold. So, if gold is $1000/ounce, and you had one full ounce of 14k, it would conceivably be worth $585.

But this isn't always exact because that piece of jewelry that weighs an ounce may also contain impurities such as solder, dirt or stones. Those impurities could account for a few grams of the weight.

This is why buyers that pay even the highest prices only buy at 80% to 90% to account for those impurities.

To summarize, it's the grade, weight and spot gold price that ultimately determines the scrap gold value.

Dec 31, 2010
Here is what determines the value of scrap gold.
by: Anonymous

It's not the condition that determines the value of scrap gold, it's the grade and weight.

For example: 14 karat would be more valuable than 10 karat and 18k more valuable than 14k.

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