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Scrap Gold Price Formula:
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Scrap gold price calculation determines the market value of gold items based on weight, purity, and current spot price. This calculation accounts for the fact that scrap gold typically sells at a discount to the pure gold spot price.
The calculator uses the scrap gold formula:
Where:
Explanation: The formula calculates the pure gold content based on purity, multiplies by the spot price, then applies a standard industry discount for scrap gold.
Details: Accurate gold valuation is essential for fair transactions when selling scrap gold, insurance purposes, and investment decisions. Understanding the calculation helps prevent being underpaid for gold items.
Tips: Enter weight in grams, purity in karats (typically 10k, 14k, 18k, 22k, or 24k), and current spot price per gram in USD. All values must be positive numbers.
Q1: Why is there a 0.9 discount factor?
A: The 0.9 factor represents the industry standard 10% discount applied to scrap gold to account for refining costs and dealer margins.
Q2: How do I determine the purity of my gold?
A: Gold purity is usually stamped on the item (e.g., 10k, 14k, 18k, etc.). For unmarked items, professional testing may be required.
Q3: Where can I find the current spot price?
A: Current gold spot prices are available on financial websites, gold dealer websites, and market tracking platforms.
Q4: Does this calculation work for all gold items?
A: This calculation works for standard gold jewelry and items. Unique or antique pieces may have additional value beyond their gold content.
Q5: Why is purity divided by 24?
A: Pure gold is 24 karat, so dividing by 24 converts any karat value to a decimal representing the percentage of pure gold content.