1. What is the Scrap Gold Value Formula?

The scrap gold value formula calculates the monetary worth of gold items based on their weight, purity (karat), and the current gold spot price. It provides an estimate of the intrinsic metal value, excluding any craftsmanship or collectible value.

2. How Does the Calculator Work?

The calculator uses the gold value formula:

Where:

• \( Weight \) — Gold weight in grams
• \( Karat \) — Purity of gold (9K, 14K, 18K, 22K, 24K)
• \( Spot \) — Current gold price per gram in GBP

Explanation: The formula converts karat to purity percentage (24K = 100% pure), then multiplies by weight and current price.

3. Importance of Gold Valuation

Details: Accurate gold valuation helps sellers understand fair market value, prevents being underpaid, and assists buyers in making informed offers.

4. Using the Calculator

Tips: Weigh your gold precisely using a jewelry scale. Check current spot price from reliable sources like LBMA. Select the correct karat (often stamped on jewelry).

5. Frequently Asked Questions (FAQ)

Q1: Why divide karat by 24?
A: This converts karat to purity percentage. 24K is 100% gold, 18K is 75% (18/24), etc.

Q2: Where can I find current gold spot price?
A: Check financial news sites, bullion dealer websites, or the London Bullion Market Association (LBMA).

Q3: How accurate is this calculation?
A: It gives the pure metal value. Actual offers may be lower as refiners deduct processing fees (typically 5-15%).

Q4: Does this work for gold-plated items?
A: No, this only calculates solid gold value. Plated items have negligible gold content.

Q5: What's the difference between scrap and resale value?
A: Scrap value is just the metal worth. Resale value may be higher for intact jewelry with designer marks.