Why Your Gold Is Considered To Be Scrap

It comes as a surprise to many people when they take their gold jewellery to a pawn shop or gold dealer, and they offer them something called the scrap price for their gold. So what is the scrap gold price and is it different from the prices listed on various websites on the Internet? Well the short answer is there is a difference, and you can carry on reading to find out how much your gold may be worth when if you want to sell it.

Why Your Gold Is Considered To Be Scrap

The Price Of Gold

As gold is classed as a commodity, the price of it is dictated by the market conditions including supply and demand. The prices will change on a daily basis, and many people see investing in gold as a hedge against inflation and a good option for long-term investment. The price is per an ounce and can be calculated in any currency, including Australian dollars.

The Scrap Price Of Gold

The scrap price of gold is below the market rate, as it takes into account the cost of smelting the gold ready to be sold again. People are often quite shocked when they realise how overpriced some jewellery is when they come to sell it and are offered the scrap value which is well below what they paid for it. You can get plenty of more information on scrap gold on http://www.goldbuyersmelbourne.com.au/sell-gold-scrap.php, one of the leading gold buying companies in Australia.

When It Is Not Considered Scrap

If you have gold that is already cast into bullion or you have gold coins, then you will be able to secure a price for your gold based on the current market prices and will not have to sell at the reduced scrap value rate. The only other time when your gold may not be considered to be scrap is when it is highly collectible or of exquisite quality that there is a resale market available. When you have a highly collectable item of jewellery, you can often find that you can get more than the market price, although it would have to be rare and precious.

Getting The Best Price For Your Gold

Although the going rate may be the same for gold as the market price dictates it, if you want to get the best price when it comes to selling your gold, you will need to shop around and find a reputable dealer. Where the dealers differ is by the commission and other charges that you may incur when transacting business with them. You will need to speak to as many different companies as you can and make sure that you understand their terms and conditions thoroughly before you commit to dealing with them.

If you are not happy to sell your gold jewellery for its scrap value, then you could try looking for a private buyer. There are many websites where you can post an advert, but it could take some time before you find anyone that is willing to offer what you want for it.