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How does gold for cash work what is the difference in price between 18k and 24k gold how do the buyers figuer out worth?
If you are working with pure bullion and not numismatic grade coinage, the answer is fairly easy.
First, you have to have a reference price. The price of gold many years ago was $35 per ounce, so a $5 coin contained 1/7 of an ounce of gold. With today's commodities markets, the price of gold varies on an hourly basis and is reported in the financial section of your newspaper on a daily basis. As of 9/11/2009 the price of gold reached $1006 per ounce!
Now with Jewelry exchanges. the process is much less transparent -- and you are likely to get shortchanged in a number of ways. First, pure gold is rated 24 karat. 14 karat gold is 14 parts gold out of 24 parts, with the remaining parts being made up of silver, copper, nickel or zinc. The gold needs to be alloyed because pure gold is too soft to be durable.
Now even though the dealer will only pay you for the gold weight, the other metals will have a refined value as well. For 14 karat gold, you should get approximately 14/24 the value of the weight for it. For 10 karat gold, about 10/24 the value of the weight. The dealer will deduct a commission and a "refining fee."
The refining fee is an outrageous expense. Shouldn't the dealer bear that? It deducts a lot from what you get. You also may not get the full weight of gold, as it is advantageous to undercalculate how much gold is there.
Complicating things further is the concept of "gold-filled" jewelry, where the gold overlay is only about 1/20th of the weight of the piece. A dishonest dealer would claim your 14 karat gold ring was a 14 karat "gold-filled" ring, pocketing about 95% of the value you would get from it.
Never, ever send your gold away in an envelope! If you can, take your gold to a local assayer and watch them work. An independent assayer will tell you the true metal value you have (they will charge a fee), while a dealer interested in buying your merchandise will have reasons to shortchange you. Many do, by as much as 2/3! When you have the true assay value, you can see what the dealer will offer you.
Raymond
What else can I help you with?
Difference between demand and supply of money?
The supply side deals with relationship between the price and the quantity. The demand side deals with the volumes that buyers are willing to purchase at various prices
What is the difference between organized exchanges and over-the-counter markets?
The difference between Exchanges and Over-the-Counter Markets is that in an exchange markets buyers and sellers meet in one central location to conduct trades and in an over the counter market buyers and sellers in different location that are ready to buy or sell over the counter to any one who comes up and are willing to pay the price.
Which of the following best describes the concept of equilibrium price?
A. Sellers are happy with the price, but buyers are unhappy with the quantity. B. Sellers are unhappy with the price, but buyers are happy with the quantity. C. Both sellers and buyers are unhappy with the price and quantity. D. Both sellers and buyers are happy with the price and quantity.
Difference between the original price and the sale price?
Discount
What is the difference between GNP at market price and GNP at current price?
No difference. Both are the same.
What is the difference between GNP at market price and GNP at curent price?
No difference. Both are the same.
How do buyers and sellers share the burden when a tax is levied on a good?
When a tax is imposed on a good, buyers and sellers typically share the burden by adjusting the price of the good. Sellers may increase the price to cover the tax, which can lead to higher prices for buyers. Buyers may also end up paying more for the good as a result of the tax. Ultimately, the burden of the tax is shared between buyers and sellers through changes in the price of the good.
What is the difference between cost and list price?
whats the difference between cost and list?
What is the difference between bid and offer bonds in the context of bond trading?
Bid bonds are submitted by potential buyers to show their commitment to purchasing a bond at a specific price, while offer bonds are submitted by sellers to indicate their willingness to sell a bond at a certain price.
The difference between the original price and the sale price of an item?
Discount
What is price erosion?
difference between actual cost and potential price
What is the difference between the ask and bid price of a stock?
The ask price is the price a seller is willing to accept for a stock, while the bid price is the price a buyer is willing to pay for the stock. The difference between the two is called the spread.
