Gold value is impacted by many factors.  Since gold is a precious metal of limited supply, it is subject to the laws of supply and demand therefore the discovery of a new gold mine might impact gold value negatively as it would mean there is more gold available in the marketplace.  Conversely, gold value can rise as increases in demand for the precious metal in jewelry manufacturing and technology pushes prices up.

But, gold value is also determined by other type of market fluctuations caused by such factors as political turmoil, currency devaluations, civil unrest and negative perceptions about the future. In times of crisis and uncertainty, the value of gold is something people historically count on.  Unlike paper currencies which can become worthless, gold is a hard asset which can be used to buy food, shelter, security and transportation.  During the run up in gold prices since 2008, many people from all walks of life have become interested in adding pure gold in the form of bars and bullion like the US Gold Eagle, Canadian Gold Maple Leaf and  the South African Krugerrand to their portfolios as a store house of value.

Karat gold jewelry, otherwise referred to on this website as “scrap gold,” does not hold the same gold value as the pure gold traded on commodities markets or held in Central Banks.  Karat gold refers to alloys containing pure gold combined with metals like copper and silver in varying percentages and represented by a karat marking.  Gold value for karat gold is related to the amount of fine gold contained in the piece.  Jewelry of lower karat like pieces marked 10 Karat for instance contains less gold than higher karat jewelry like those marked 18 Karat or 18K and therefore by weight have a lower gold value.

The gold value of a piece of jewelry is best illustrated in GoldFellow®’s Gold Payments Gallery where customers can view photographs of items the company has purchased including the item’s weight in pennyweights and grams, the karat and the price paid according to the current gold price.  For example, if a consumer wanted to sell a class ring, they could get an idea of their ring’s gold value that day by perusing photos of class rings in the gold payments gallery.

Scrap gold value for cash for gold buyers like GoldFellow® depends on two factors: weight and karat.  The prices GoldFellow ®pays for karat gold also increases with the amount of total gold weight being sold at that time.  So gold value increases incrementally by pennyweight for larger amounts of total gold.  If possible, consumers are better off selling more gold to GoldFellow® at one time to take advantage of the higher prices for larger quantities.  GoldFellow® provides a schedule everyday which lists the prices it pays for 10K, 14K, 18K and 22K gold by pennyweight on its website.

References: – Gold – World Gold Council – Gold and Money