Some info on buying, selling and using scrap gold
Storing precious metals
By Jaap Verduijn.
On the subject of precious metals storage like bullion bars, gold coins and dental gold, several considerations must be made concerning size, security and liquidity. Bullion products appear in all sizes and weights, up to and including 70 pounds bars. For such weights and volumes the services of a registered precious metal storage facility should be enlisted. Smaller items and lots of precious metals can usually be stored in vaults at your local bank.
Some banks even offer dedicated vaults, exclusively for storing precious metals in the shape of the "big bullions". If the volume of the stuff alllows it, this would be a good option, expecially since these vaults usually come with additional insurance policies for a nominal yearly or monthly fee.
If you want to have your precious metals "liquidly available" with ready access at any time, home storage can certainly be considered. Vaults and safes in all sorts of shapes, sizes and security levels are available nowadays - and many of them don't even look like a safe! Safely storing precious metals is eminently possible, in many different ways. If you're into gold recovery from scrap, you'll be surprised how soon you'll need good gold storage. Thankfully, storing gold is neither difficult nor expensive.
Scrap gold prices are variable!
Recycled gold, scrap gold or gold scrap, forms a large part of the of the international gold market. Its supply tends to depend on economic circumstances and on the behavior of the gold price: the gold scrap supply typically rises in times of economic distress or following a price rise.
The scrap gold price varies from day to day - it climbs and rises with the general gold price. When buying scrap gold or "broken gold", you should be aware that alloyed gold (less than 24 karat) should cost proportionately less, like a 9 karat gold necklace going for a much lower price than a 24 karat gold necklace - all other things being equal. The closer to pure gold, the higher the price you pay for scrap.
At least... that's generally the case. However, sometimes there are other precious metals mixed with the gold, like silver, platinum or rhodium. If other precious metals are present in the lot or object that you're buying, the seller will expect to see that back in the price. For example, dental gold (gold fillings, gold teeth) often contain platinum... and platinum has a higher price per ounce than gold.
Gold is virtually indestructible so unless it has been lost, all the gold ever mined still exists. With the right equipment, it is very easy to recover gold from even the most complex mixes. It can be melted down, re-refined and recycled an infinite number of times.
Gold is virtually indestructible so unless it has been lost, all the gold ever mined still exists. With the right equipment, it is very easy to recover gold from even the most complex mixes. It can be melted down, re-refined and recycled an infinite number of times.
Different kinds of scrap gold
The type of scrap gold one finds on for instance eBay includes jewelry with various karat densities from 8, through to 22 and 24 karat gold, and of course 16 karat dental gold like fillings, gold teeth, bridges and crowns. Other gold such as gold nuggets, pure gold coins and bullion bars are also offered as scrap. Actually, anything that has gold in it can be found for sale.
The (scrap) gold price will change from day to day, so when you're bidding on an auction lot you should be aware of the present price, in order to know when to go on bidding or when to stop.
When buying gold scrap, most people want it to be as pure as possible, on account of them not having the facilities to extract gold. However, most jewelry gold is mixed with other metals like silver, copper, platinum, rhodium or palladium. The gold purity is expressed as follows:
The (scrap) gold price will change from day to day, so when you're bidding on an auction lot you should be aware of the present price, in order to know when to go on bidding or when to stop.
When buying gold scrap, most people want it to be as pure as possible, on account of them not having the facilities to extract gold. However, most jewelry gold is mixed with other metals like silver, copper, platinum, rhodium or palladium. The gold purity is expressed as follows:
24 karat is 999.99 fine
22 karat is 916.6 fine
18 karat is 750 fine
14 karat is 585 fine
9 karat is 375 fine
No real "pure" gold!
24 Karat is pure gold without any additions. This is the purest gold available, yet its fineness is expressed as 999 parts per 1000, because it is almost impossible to produce real pure gold without even the slightest impurity.
The above standards tell you how much gold there is in a gold piece. 14 carat, for example, is 585 parts gold and 415 parts other metal. 18 carat gold is more popular for gold jewelry, with a 75 percent gold and 25 percent "other" ratio. 14 karat is used industrially for pen nibs, computer circuit boards and such. It is also used in jewelry when a good hardness is required to withstand wear and tear. Then there's 10 carat with 41.7 percent gold, hence known as 417. It's used for cheaper jewelry.
What's the essence of this article? Simple: when it comes to buying gold scrap, it is important to know how much gold there is in the piece or lot, and what the day price is.
The above standards tell you how much gold there is in a gold piece. 14 carat, for example, is 585 parts gold and 415 parts other metal. 18 carat gold is more popular for gold jewelry, with a 75 percent gold and 25 percent "other" ratio. 14 karat is used industrially for pen nibs, computer circuit boards and such. It is also used in jewelry when a good hardness is required to withstand wear and tear. Then there's 10 carat with 41.7 percent gold, hence known as 417. It's used for cheaper jewelry.
What's the essence of this article? Simple: when it comes to buying gold scrap, it is important to know how much gold there is in the piece or lot, and what the day price is.
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