The price of gold per ounce changes minute to minute as it is traded on the world’s commodities markets. These current buy and sell gold prices – called spot prices – differ from the fixed price of gold per ounce most industry, jewelers, refiners and gold buyers use to set their prices. The price of gold per ounce used by GoldFellow® to calculate its scrap gold prices is the London Afternoon Gold Fix which is established each day by five members of the London Bullion Market Association at the close of trading in London.
The price of gold per ounce referred to by the London Afternoon Fix is for one Troy ounce of 24K gold (99.99% pure). But, karat gold which is used in the manufacture of jewelry like the popular 14 karat and 18 karat gold seen in jewelry and department stores is not pure gold. Only 24 karat gold is considered pure or fine gold. Lower number karated gold are alloys of fine gold combined with other metals. The percentage of fine gold contained in a piece is represented by the karat number as a percentage of 24 karat. For example, 18 karat gold represents 18/24 – or 75% gold content. The remaining 25 percent of the piece consists of other metals like silver and copper which adds strength, durability and color but does not contribute to the scrap value of the gold. Though all GoldFellow’s prices are set according to the current day’s London Afternoon gold fixing, it is possible to compute today’s price of gold per ounce for each karat of gold by using GoldFellow®’s gold value estimator on the “Gold Price” page.