1. What is the Gold Price Calculator?

This calculator determines the price per gram of gold at a pawn shop based on the gold's purity (karat), current Kitco spot price, and the pawn shop's factor (percentage of spot price they pay).

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( \text{Karat} \) — Purity of gold (24k = pure gold)
• \( \text{Kitco Spot} \) — Current market price of gold per gram
• \( \text{Pawn Factor} \) — Percentage (as decimal) of spot price the pawn shop pays (typically 0.6-0.9)

Explanation: The equation first calculates the pure gold content based on karat, then applies the current market price, and finally applies the pawn shop's discount factor.

3. Importance of Accurate Gold Pricing

Details: Understanding how pawn shops calculate gold prices helps sellers get fair value and helps buyers understand the margin built into pawn shop prices.

4. Using the Calculator

Tips: Enter the gold's karat value (10k, 14k, 18k, 22k, etc.), current Kitco spot price in your currency per gram, and the pawn shop's factor (typically between 0.6 and 0.9).

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the current Kitco spot price?
A: Visit kitco.com for live gold prices. Make sure to use the price per gram in your local currency.

Q2: How do I know my gold's karat?
A: Look for stamps like "10k", "14k", "18k", etc. If unsure, have it tested by a professional.

Q3: What is a typical pawn factor?
A: Most pawn shops pay 60-90% of the gold value, depending on market conditions and their business model.

Q4: Why do pawn shops pay less than spot price?
A: They need to account for profit margin, risk, and the costs of refining and reselling.

Q5: Is this calculator accurate for jewelry?
A: This calculates melt value only. Jewelry with artistic or collector value may be worth more.