So when you’re thinking about selling your gold, it’s fairly likely that you’re going to want to sell it off when the value of gold is at an all-time high. That makes perfect sense – you’ll maximise your returns and get the best deal while at the same time, shifting unwanted gold.
But how do we calculate the value of gold? Assuming for a moment that the fixed price – a number that fluctuates according to the market – isn’t the focus here, what is used to work out how much money you’ll get? Let’s take a quick look together at what you need to know.
A Case of Purity
The big thing that we use to measure the value of gold is the purity of it according to the percentage of actual gold that’s there.
See, real gold, pure gold with nothing else in it, the 24-karat kind, is worth quite a bit of money. However, it’s less common to pick that up than you might think. Generally speaking, gold is mixed in with other metals and sold. This makes it pretty challenging to pick up and sell because usually, the actual gold percentage of these types of things is pretty low. It’s only the pure gold that companies are interested in, of course. If it takes them a lot of effort to remove the gold and separate the metals, the price will be lower overall.
How Do We Measure Purity?
When looking at purity, you need to know that we measure it according to the level of gold in there. This is done via something like karats.
So at the one end, you’ve got 24-karat. This is pure gold, no metals in it, and it can fetch thousands of pounds in the right market. But on the other, you’ve got something like 8-karat, which is considerably less valuable. What makes it less valuable is the content of other metals inside it, of course.
The purity of a metal is basically the deciding factor with regards to what we pay you and when. If the market is good for buying gold, you’ll still make more when you sell it, but you’re going to be influenced by the purity of your gold. If you’ve got a better purity, you’ll get more cash. If your purity isn’t so good, you’ll make less. That’s just how it works.
So, when it comes to gold, you do have to try and work out what purity you’ve got if you want to stand any chance of making some cash for it. Purity influences our prices regardless of the market value for gold. We can only offer so much for a certain purity of gold. Ultimately, the industry works on this principle regardless of where you go. However, it does give you a lot of flexibility regardless of where you go and what you do because if you’ve got a pure bit of gold, it’ll be in demand.