Jewelry Loans Boca Raton
How much is gold worth? Seems like a simple question right? Wrong. There are many factors that go into valuing gold. You have to take into consideration the karat (10k, 14k, 18k), the weight, and the price per ounce. Also, the price of gold varies from minute to minute. You have to make sure you are looking at a current price per ounce of gold in order to get the true value. Gold can also be worth more than the spot price if it is a valuable coin. Some gold coins with high grades can be worth thousands more than the spot price. Make sure you know the value of your gold before you go to get jewelry loans Boca Raton.
First, is figuring out what karat gold you have. Let’s say you have a gold chain that you want to get a collateral loan for. The first thing you want to do is find out what karat gold it is. Maybe you remember what the jeweler told you when you bought it, but most people forget. If you have a small magnifying glass or loupe you can find a stamp on the piece. Every piece of gold jewelry must be stamped with the correct karat of gold it is made with. Common stamps you will find are 10kt, 14kt, and 18kt. These are self explanatory. But sometimes you will see a 585 or 750. Those represent 14kt and 18kt respectively. 585 really means .585 which is the ratio 14/24. 24 karat gold is pure 100% gold. So if you have a piece of 14kt gold you really have a piece that contains .585 or 58.5% pure gold. Right off the bat you have to multiply whatever the price for one ounce of pure gold is (Today it is $1,330) by .585. So if your chain weighs exactly 1 oz and it is 14kt you have $778.05 in gold (1,330 x .585 = 778.05).
This brings us to the second thing you need to calculate when valuing gold. The weight. If you look up the price of gold you will see it represented as the price of one ounce of pure 24kt gold. That is called the spot price. But many jewelers and local pawn shops don’t weigh jewelry in ounces because it takes a lot of jewelry to weigh an ounce. Most weigh in grams or pennyweights. There are 20 pennyweights in one troy ounce. So let’s say you have a small scale at home that weighs in pennyweights but not ounces. In order to figure out how many ounces your jewelry is weigh it in pennyweights. You find that it weighs 10 pennyweights. This means it also weighs 1/2 of an ounce. So let’s go back to the chain you have in the previous paragraph and assume it is 14kt gold. Not only do you have to multiply one ounce by .585 but now you have to divide that answer in half to get the true value because your piece weighs a half ounce. So when it’s all said and done you have a chain that is worth $389.03.
While this might not seem like a lot of money compared to the spot price per one ounce, imagine 10 years ago when gold was only $600 per ounce. Your necklace would be worth much less. Now that you know how to figure out the value of gold on your own you will be more prepared before getting jewelry loans Boca Raton.
by, Seth Marcus at Boca Raton Pawn
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