Scrap Gold - Scrap Gold

Why Scrap Gold Is A Valuable Commodity?

Does scrap gold excite you? It surely makes my wallet ringing... No matter what you think about scrap, the other part: "gold" is all that matters. Contrary to the majority of materials, taken for recycling or otherwise, all precious metals maintain their intrinsic value. The higher their purity, the closer the price is to that of the raw product. To give you an example, a 24-carat gold bracelet, torn away into three parts, is probably worth about 70-80% of the price of the gold ingot straight from the melting pot. This figure will be considerably lower as the carat value decreases; but, due to its ease of re-processing, gold scrap is a very attractive source of metallic gold.

Not surprisingly, numerous businesses and individuals trade in gold scrap. Whether it is buying gold scrap locally, or on a larger scale, through eBay or other auction sites, the opportunities for making a significant profit are very tempting... Consider, for example, your neighbor who wants to sell her old jewellery, because it’s broken and no longer in fashion. She doesn't know where to go, and probably would try the nearest pawnbroker, or another pledges shop. In small towns, this option may not be available at all. But, here you come with your well-placed newspaper ad, announcing that you buy scraps of gold and other precious metals. A phone call later, you're sitting at the owner's home, trying to work out the fair value of the gold scrap she has for sale. Here are some gold pieces you may find: brooches, cufflinks, coins, rings, pins, bracelets, etc. Or, you may find scrap gold in its original form like nugget, bar, or bullion.

What kind of money are you going to offer her for the four gold pieces she's showing you? There shouldn't be much guessing involved, providing you're well prepared and know your trade. If you know the current prices for gold scrap, the prices you're going to get from the big buyer or reseller, then all you have to do is to apply a fair profit margin and you've arrived at the buy price. If you've any doubts as to the purity and carat value of these items, you will have to assay the piece, and advise the owner later. This can be done using any of the testing tools available through the jewellery trade.

Large buyers in the scrap gold business, will quote to the seller the final price, they are prepared to pay, based on the metal exchange prices, and market conditions. In case of a small operator, it's just a matter of being knowledgeable and honest. And one final word of advice, for both sellers and buyers. Scrap gold that you have, will often have much higher value, if it's in the form of coins and antique jewellery. So, before you condemn it to the melting process, ask any professional dealer about his opinion. It may surprise you, how valuable your transaction is.