How to estimate the price of gold ?

The gold estimate of an object depends above all on the price of gold. This quotation, carried out twice a day by the London Bullion Market Association, serves as a reference for all gold transactions in the world. It is essentially based on supply and demand to determine a fair price. The gold supply consists of:

• Extraction: through mines or by any other means;
• Recycling of gold sold at the various redemption points.

The main buyers of gold are:

• States;
• Central banks;
• Individuals;
• Industry.

Depending on all these parameters, the sports price of gold is fixed. However, this course is influenced by external factors. Indeed, gold is completely independent of financial markets and States, although it remains subject to:

• Inflation and currency devaluation;
• Central bank policy;
• Geopolitical crises.

Gold essentially serves as a safe haven. That is to say, in the event of a major crisis, investors buy gold en masse to protect themselves from the loss of liquidity and purchasing power. Indeed, the price of gold remains stable over time. So, currently, the price of an ounce of gold (31.10 grams) is around 1,838 euros. It is from this value that the price of gold products is set.

The gold carat should be distinguished from the carat relating to diamonds. For diamonds, the carat symbolizes a unit of weight. The carat is the equivalent of 0.20 grams. Concerning gold, the carat is not a weight but a unit of purity. But then, why are we talking about 18 carat gold ? 9, 14, 18, 22 or 24 carat gold is in reality the quantity of gold contained in 24 grams of alloy:

• 9 carat gold: 9 grams of gold in 24 grams;
• 18 carat gold: 18 grams of gold in 24 grams;
• 24 carat gold: 24 grams of gold in 24 grams. However, gold is never completely pure. Its title is said to be “999.9”, or 99.9% pure.

Whether it is the dental carat or the jewelry carat, 18 carat gold is of identical purity. You should count around 32 euros per gram of 18-carat gold.

When resold, the gold object may have different destinations depending on its purity, weight and quality. We thus distinguish:

• Products intended for recycling through redesign: wedding rings, bracelets, pendants;
• Objects intended for resale: luxury watches, jewelry, etc.

Gold jewelry undergoes several examinations before any estimate. Individuals can insure the metal by purchasing kits, but the use of an expert is mandatory in the event of resale.

Check the metal used

First of all, you must ensure that the metal used is gold. For this, professionals use the magnet method. Precious metals are not sensitive to magnets. In fact, if you bring a magnet close to a pure gold ring, it does not move, unlike a brass ring. Pay attention to the clasps, they can be made of an alloy other than gold. They therefore magnetize, while the rest of the bracelet or watch is indeed made of precious metal.

What is the purity of gold jewelry ?

The next step is to determine the purity of the jewel, in other words the carat. Jewelers and businesses that buy gold can use two methods:

• The hallmark: each piece of jewelry made from pure gold is hallmarked. The hallmark used then indicates the purity. A seahorse means that the ring is 24 carats while the eagle head marks 18 carats. So you can see the purity of the product using a magnifying glass;
• The touchstone: this black volcanic rock picks up metal residue when the object is rubbed. Then, a chemical product is gently poured onto the stone which will then change color. Depending on the appearance and color, we know the carat value of the gold used.

Determine the weight of the object

Once you have the carat and purity of the object, you need to know its weight in order to correctly assess its price. Professionals have at their disposal scales certified and controlled by the authorities, in order to determine a precise weight.

If your ring is set with precious stones, the experts will remove them for weighing. In fact, only the weight of the gold is affected by the repurchase for recycling. Sometimes, gold buying companies will make you an offer for the stones, depending on the carat size. If your ring is intended for later resale, the entire product will then be weighed.

Finally, depending on the weight and carat of your jewelry, a precise estimate of the price will be communicated to you based on the gold price.

At Gold Union, we appraise your jewelry and offer to buy them back at the best price. We have been voted “best price on the market” by our customers. In addition, we track and monitor shipments so that your items do not get lost. Finally, if you accept the offer, you will receive the money directly into your bank account.

To find out more, do not hesitate to contact our gold specialists! You can contact Gold Union agencies and experts via our e-commerce site.