What Is Gold Scrap?

According to the website Gold Price, "Scrap gold can include any products that are made of gold or include gold in its manufacture." This includes everything from your grandmother's fancy gold ring to the gold crown that your dentist made for you. No matter what condition the gold is in, refiners can always recover its value.


Identification

1. Scrap gold is valued by its karat weight--10K, 14K, 18K, 22K or 24K. The karat value relates to the percentage of gold in the piece. The higher number of karats, the greater the percentage of gold. Understand that 24K is 100 percent gold, 10K is 40 percent gold. You will often find a marking on the clasp of your necklace or bracelet, on the underside of your ring, or on the back of your earrings that will indicate what karat your jewelry is made from. Dental gold ranges in karat value from 10 to 22 karats.

Types

2. Gold with a higher karat value is also softer and less durable than gold that is not 100 percent pure. Gold is mixed with other alloys, such as copper, silver, nickel and zinc, to add strength, color variety and durability.

Effects

3. The term scrap gold has gained in popularity recently due to the historic rise in the price of gold. In truth, there is nothing remotely scrap-like about gold. Gold in any form has value. Whether its broken, twisted, melted, scratched or worn, the beauty of gold is that it can be melted down and made into a brand new necklace, bar, coin or tooth.

Considerations

4. Selling scrap gold can be a lucrative way to make extra cash, given the current price of gold. Some of the scrap gold you own may include gemstones. If you plan to sell the gold, it is best to remove the stones first, especially if you are selling the gold online. The price of gold fluctuates daily, but there are dealers online, U.S. Gold Buyers among others, who list the price per pennyweight for the various karat values. Keep in mind that the dealers include a refining fee in their price, but shopping around is easy with a few mouse clicks. Selling your gold directly to a refiner or dealer is better than going through a middleman, like a jeweler or a pawn shop.

Misconceptions

5. Did you know your cell phone is made with gold? How about your computer? Many different kinds of electronics contain gold circuits, connectors and pins, so before you throw away that old phone, open it up and check out the metal parts. Anything gold plated is also considered scrap gold and has value to a dealer. Whether you are selling your gold or stockpiling for a rainy day, scrap gold is a treasure no matter where you find it.