Don’t let its name or what it’s called fool you, there’s nothing scrappy about scrap gold. It’s just something to call jewelry that is either broken or has antique value.
You can tell the worth of scrap gold by its karat value, which in plain terms means how much gold is in the jewelry. This can range from 8-karats to 24-karat gold that is its softest and purest form. If you’re looking at an 18-karat piece of gold jewelry, then you can thank your lucky stars, as this is quite possibly something than can fetch a higher value owing to its gold value.
Now how do you make money buying scrap gold? Well, gold has always been in demand but more so now when gold prices are high, so high in fact that it surged to almost $1,000/ounce. Amazing, right? However, before you go into buying and selling scrap gold as a business, you first have to know how to value scrap gold:
- Look at the workmanship. Check for the name of the maker, origin (Asia, Middle East, UK, or US), gemstone inlays – which have to be removed from its setting as these should be sold separately, and rarity.
- After determining its value, it’s time for you to take it to an expert jeweler to lock in its value in karat and purity. In the US, the minimum standard is 10 karats which is preferred for its longevity and toughness, ergo, long-wearing. Most often, you can see its value in karat by looking at the inscription embedded on the jewelry itself, which negates the option of going to an expert jeweler.
- Now, it’s time to get it measured in ounces or grams. Most gold dealers use the pennyweight to measure gold so it’s best that you familiarize yourself with how it works.
- After getting it sufficiently measured, you can use this information to get the value of your gold for selling. This can be achieved by looking up the spot price per ounce or gram – available online – and dividing this number by the karat value of your gold. The result of that is your selling price.
- To get the most out of this business, it will be best if you eliminate your middleman and deal directly with a refiner or a smelter. You can do this by getting in touch with the Better Business Bureau at bbbonline.org
- Be flexible. You can try every means available to sell your scrap gold e.g. E-bay, BestGoldRates.com, scrapgoldsecrets.info, but better shy away from pawnshops and jewelry stores which almost always stiff the seller or dealer from a fair deal. That means, you.
This is a good business to get into if you do your homework very well. The success of it will entirely be up to how much you know and how well you deal with your buyers. You might encounter disappointments along the way but that’s how business is. You just have to roll with the punches and keep trying. Meantime, do not ever forget to calculate and price your gold well so when you enter the lair of the gold buyer, you are ready to wheel, deal, and walk away happy…straight to the bank.
Aside from your jewelry, scrap gold can be harvested from cell phones, old coin, computer chips, computer motherboards, and electronic circuit boards.