With gold prices on the rise, many people are looking for ways to cash in on their old or unwanted gold items. Whether you’ve inherited jewelry, found broken pieces, or simply want to turn unused items into cash, selling scrap gold can be a great way to earn extra money. However, understanding the value of your gold, the different types of karats, and how the selling process works is essential to getting the most out of your sale.
Understanding Gold Karats and Purity
Gold comes in different purities, measured in karats (K). The higher the karat, the purer the gold content. Here’s a breakdown of the most common karats you’ll encounter:
- 24K Gold – 100% pure gold. This is the highest quality, but it’s also very soft and not commonly used for jewelry.
- 22K Gold – 91.6% gold. Mostly used in high-end jewelry but still soft and easily bendable.
- 18K Gold – 75% gold. More durable, with a good balance between purity and strength. Common in fine jewelry.
- 14K Gold – 58.3% gold. Popular in jewelry for its affordability and durability.
- 10K Gold – 41.7% gold. The lowest karat gold that can still be marketed as “gold” in the United States. Durable but less valuable.
When selling gold, you’ll be paid based on its purity, so it’s important to know the karat of your gold items.
Gold Hallmark Guide
Most gold items come with a hallmark stamp indicating their karat or gold purity. Look for small engravings on your jewelry, coins, or scrap gold. Here’s a quick guide to what the hallmarks mean:
- 999 or 24K – Pure gold
- 917 or 22K – 22-karat gold
- 750 or 18K – 18-karat gold
- 585 or 14K – 14-karat gold
- 417 or 10K – 10-karat gold
These stamps help determine the purity of your gold and allow buyers to calculate its value based on the weight and current market prices.
Gold Prices Are Up—But What’s the Real Value?
While gold prices may be skyrocketing, it’s important to understand that the market price (often quoted as $1,000 per ounce or higher) reflects the top market rate for pure 24K gold. When selling scrap gold, you’ll likely receive less than the spot price due to several factors:
- Middleman Fees: Gold buyers (including pawn shops, jewelers, and gold dealers) need to make a profit, so they offer a lower rate to ensure they can resell it at a higher price.
- Refinery Fees: Gold scrap often has to be melted down and refined before it can be sold as pure gold. Refiners charge fees for this process, which reduces the final payout you receive.
It’s not uncommon for gold buyers to offer anywhere between 60-80% of the market price, depending on the purity of the gold and current demand.
Where to Find Scrap Gold
If you’re interested in selling scrap gold for extra money, here are some common places to find it:
- Old Jewelry: Broken necklaces, outdated rings, and damaged earrings that you no longer wear can be sold as scrap gold.
- Gold Coins: Some gold coins, especially older ones, can be sold for both their numismatic (collectible) value and their gold content.
- Dental Gold: Gold crowns and fillings may contain a high percentage of gold and can be sold to gold buyers or refiners.
- Electronics: Old electronics like computers, cell phones, and circuit boards sometimes contain small amounts of gold in the connectors and processors. While this type of scrap gold takes more effort to extract, it can still be valuable if you have large quantities
Tips for Selling Scrap Gold
- Get Multiple Quotes: Don’t settle for the first offer you receive. Shop around with different buyers to compare prices. You can visit local pawn shops, gold dealers, or even check online gold buyers.
- Weigh Your Gold Accurately: Know the weight of your gold in grams or troy ounces to avoid being underpaid. Buyers will typically weigh the gold in front of you, but it helps to have an idea beforehand.
- Check the Gold Prices Daily: Gold prices fluctuate regularly. Keep an eye on market trends to sell when prices are higher.
- Understand Buyer Terms: Some buyers may charge additional fees or offer different rates based on the form of gold (e.g., coins vs. jewelry). Always read the terms before agreeing to sell.
Here’s a list of common hallmarks that can confuse people into thinking an item is solid gold when it is not:
- 14K GF (Gold-Filled): Indicates the jewelry is gold-filled, meaning it has a layer of gold bonded to a base metal. It’s not solid gold.
- HGE (Heavy Gold Electroplate): This stands for heavy gold electroplate, meaning the item has a thin layer of gold applied through an electroplating process, but it is not solid gold.
- GP (Gold Plated): Gold-plated items have a thin layer of gold applied over a base metal, making them much less valuable than solid gold.
- RGP (Rolled Gold Plate): Similar to gold-filled, RGP means the item has a thin layer of gold mechanically bonded to another metal, but it’s not solid gold.
- EP (Electroplated): Electroplated items have a thin coating of gold over a base metal, often misleading people into thinking it’s worth more.
- Karat Clad: A marketing term for items with a thin gold layer, not to be confused with solid karat gold.
- 925: This hallmark actually represents sterling silver. Sometimes gold-plated silver items carry this stamp, confusing people into thinking it’s gold.
- GEP (Gold Electroplate): Similar to HGE, GEP signifies that the item is electroplated with gold and not solid.
- 1/20 12K GF: This hallmark means the piece is 1/20th 12-karat gold-filled, not solid 12K gold.
- Plated (Various Versions): Terms like “gold overlay,” “layered,” or “plaque” also indicate that the item is gold-plated rather than solid gold.
These marks can be easily mistaken for solid gold, but they signify gold-plated or gold-filled items, which have much lower value. Always check for the purity mark (e.g., 14K, 18K) and avoid confusing these terms.
Selling scrap gold can be a lucrative way to make extra money, especially when prices are high. However, knowing how to evaluate your gold’s purity, understanding the difference between market and resale prices, and shopping around for the best buyer will help you get the most value for your items. Whether you have old jewelry, coins, or even scrap gold from electronics, you could be sitting on a valuable resource waiting to be sold.
