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Gold Prices (Part 4) - How Much Is My Gold Worth?
Thus far, you have learned how to determine a gold's purity and weight. Now,
you're ready to put that information together so you can determine how many
grams of pure gold you have. Additionally, I'm going to explain how you can find out
how much that gold is worth. In order to accomplish this, you need to: find the spot price of
gold, calculate the price per gram, determine how many grams of pure gold your customer
has, and calculate how much your customer's gold is worth.
Let's take a closer look at each of these steps.
Step 1 - Find The Spot Price of Gold As you should know by now, the spot price
refers to the price of gold per troy ounce. The spot price can fluctuate throughout the
day, so you should check it each time you make a transaction.
You can find the spot price of gold online or on your smartphone. If you want to use
your computer, just Google "spot price of gold." A list of websites will come up. Go
through the sites and find your favorite. Then, bookmark it so you can refer to it
often. If you want to find the spot price on your
smartphone, just go to the app store and search for an app that gives the spot price.
Install the application. Then, you can open the app whenever you need the spot price.
Step 2 - Calculate the Price Per Gram Most of your customers will bring you grams
instead of ounces of gold. Because of that, you will need to calculate the price
per gram. As I mentioned earlier, there are 31.1 grams
in a troy ounce. Thus, you will take the spot price and divide it by 31.1 to find out
how much each gram of gold is worth. For instance, let's say the spot price of
gold is $1600. You would divide $1600 by 31.1. You would come up with $51.45. Thus,
gold would be worth $51.45 per gram. Step 3 - Determine How Many Grams of Pure
Gold Your Customer Has Next, you have to determine how many grams
of pure gold your customer has. First, you will need to test and weigh the gold.
Then, you will need to determine the percentage of pure gold that you have. At
that point, you will take the weight and multiply it by the karat's percentage. That
will tell you how many grams of pure gold you have.
For instance, if you have a 12k necklace that weighs five grams, you will need to
take .5 x 5, which will give you 2.5 grams. The reason you multiple the five grams
by .5 is 12 karats is 50% gold. Step 4 - Calculate How Much Your Customer's
Gold Is Worth Then, you will need to multiply the number
of grams of pure gold by the price per gram. In this example, let's say you have
2.5 grams of gold, and gold is $51.45 per gram. You will multiply 2.5 by $51.45, which
will give you $128.63. Thus, your customer's gold will be worth $128.63.