1. What is the Scrap Gold Price Calculator?

The Scrap Gold Price Calculator estimates the value of gold items based on their purity, current spot price, and a market factor. It helps determine the fair price when buying or selling scrap gold.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Purity \) — Gold purity in karats (0-24K)
• \( Spot \) — Current gold spot price per gram
• \( Factor \) — Market adjustment factor (typically 0.7-0.95)

Explanation: The equation converts karat purity to a percentage, multiplies by spot price, then applies a market factor that accounts for dealer margins and refining costs.

3. Importance of Gold Price Calculation

Details: Accurate gold price estimation is crucial for fair transactions when selling jewelry, dental gold, or other gold items to refiners or dealers.

4. Using the Calculator

Tips: Enter gold purity in karats (e.g., 14K, 18K), current spot price in your currency per gram, and typical market factor (default is 0.85). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical factor value?
A: Factors range from 0.7-0.95 depending on market conditions, dealer margins, and refining costs. 0.85 is a common starting point.

Q2: How do I find the current spot price?
A: Check financial websites or precious metals dealers for live gold prices in your currency per gram or per ounce.

Q3: Does this work for all gold items?
A: Yes, as long as you know the purity. For jewelry with stones or other metals, only the gold content is valued.

Q4: Why is scrap value lower than spot?
A: The factor accounts for dealer profit, refining costs, and market liquidity for small quantities.

Q5: How accurate is this calculation?
A: It provides a good estimate, but actual offers may vary based on item specifics and current market conditions.