For many millenniums, precious metals have been the standard in trade and commerce. In fact, it was only in 1971 that the United States completely abandoned the Gold Standard. Up until this day, any citizen had the right to being gold and silver certificates to a Federal Reserve Bank to be exchanged for the equivalent of 35 dollars an ounce. Prior to this, FDR forbid banks paying out gold for gold notes. It was only in 1974 that Gerald Ford allowed citizens to own gold bullion again. This gave rise to the theory that Keynesian economic policies were necessary to stop economic collapse.
Gold has been so popular for thousands of years for several reasons. The first being the scarcity of the metal. Gold is an extremely finite resource, and short supply will always lead to high prices in metal commodities. Gold also has a vast amount of properties that make it superior to other metals. For instance, gold is among the best conductors of electricity in the world. Coupled with its high resistance for corrosion, gold is a hot commodity in the electronics manufacturing industry.
Not only is gold a popular commodity for many manufacturers, it is also revered for its brilliance among jewelry collectors. It is, after all, the most common metal for wedding bands, for good reason. Unlike silver, gold will not tarnish or stain the skin of the wearer. For all of the aforementioned reasons, gold is an extremely popular metal. Let’s go over how you can determine the value of gold that you may have in your collection.
The most important part in determining the intrinsic value of gold is the karat rating. Simply put, the higher the number of karats, the higher the purity of the gold. The highest possible karat a gold can be is 24. This means that the gold is pure. 22k or 18k are also highly valuable, but they are mixed with lower cost metals to increase how sturdy the piece is. If you are simply trying to get melt value for the gold, the purity is extremely important.
Gold plating is also an extremely common way of making jewelry more attainable for the masses. A less expensive piece of metal such as nickel will be put in a chemical bath that is electrically charged. This process allows an extremely thin amount of gold to adhere to the metal. There is such an insignificant amount of gold, that there will be no melt value for the item.
Not only does gold hold the intrinsic value of the metal. Many of the most expensive are pieces in the world are made out of gold. This can provide an exponential increase in value over scrap value alone. Even a wedding band, with gems and diamonds in the settings can increase the value. Who was the artist that made the piece? What does the piece depict? What is the age of the piece. These are some of the most important questions to ask yourself when attempting to discover the value of your gold.
When in doubt, it is always a good idea to reach out to a professional. Many jewelry stores will provide a low cost appraisal of your item. Some will even make you a cash offer on the spot, if you are in the market to sell. For more rare pieces, you can reach out to an auction house to provide you with the value of your gold. Many auctioneers have a wide network of experts that could provide you with valuable information. Feel free to also check out our store to see if we have any items similar to you in stock. This may allow you to get an idea of the value of your item.