The value of your scrap gold depends on both the gold itself and the global market for gold. Your gold will be valued by its purity and the extent to which the product containing it must be refined to extract the gold. Global demand for gold at the time of sale will also greatly affect the amount you will receive for your gold.
Gold prices and the global market
Gold is a rare commodity, because it is universally valued for both its physical properties and as a safe investment in troubled economic times. When an economic recession hits, and the value of various currencies fluctuate wildly, gold increases in value in direct relation to the severity of the economic downturn.
Gold is also considered a safe investment because of its value in various cultural practices around the world. While other materials may be replaced in manufacturing processes as technology progresses, traditions in many cultures still require gold to be used in ceremonies such as weddings.
Conversely, gold prices can also rise in times of economic growth, as gold is a component in electronic equipment such as computer circuit boards and automobile components. However, it is in a bad economy that the price of gold can reach record highs.
What determines the value of your own scrap gold?
The value of your gold will depend on its form and purity. Broken gold jewelry that can be repaired is valuable not only for the gold it contains but also for the craftsmanship required to produce it.
Gold jewelry that is beyond repair will require refining at a precious metal refinery to separate the gold from other materials. The purity of the gold, traditionally measured in carats, will also determine the amount you will receive. For example, twenty-four-carat-gold jewelry will bring more money than eighteen-carat gold.
Items that have gold as a small component, such as computer parts and catalytic converters in cars, will need additional refining to extract the gold, lessening the amount you will receive. However, these components also have trace amounts of other precious metals, which can be valuable.
When is the best time to sell to a scrap gold buyer?
Unless you need immediate funds, try to hold out until the economy is in recession, and check out the commodities section of a financial app or newspaper. The current price of gold will be listed, and you can try to judge when gold has hit its peak.
Just don't wait too long for the price to keep rising. What goes up must come down eventually. If you're looking for a scrap gold buyer in your area, visit http://www.midstatesrecycling.com.
