How Is Gold Priced?

Many people are taking advantage of economic conditions and increasing exchange rates and opting to sell their gold for cash. Unwanted or outdated jewelry and scrap gold can be sold to a gold dealer. To be sure you’re getting a fair price for your gold, however, you may want to first understand how gold is priced. So, just how is gold priced? At Ralph Mueller & Associates, we want to make sure anyone interested in selling gold in Phoenix has all the information they need to receive a fair price for their gold.

The price of precious metals, like gold, fluctuates constantly. Gold is traded 24 hours a day because it is traded internationally. Somewhere in the world, a financial center like Chicago, New York, London, Paris, Zurich, Dubai, Hong Kong, Sydney or others, is always open for trading. As stakeholders in the market buy and sell gold, the price goes up and down. Historically practiced, since the early 1900s, the price of gold is determined and fixed twice a day on the London Market, to be used as an international benchmark for gold pricing.

When you bring your gold to a reputable gold buyer, the gold’s weight and purity are first determined. Gold purity is always inscribed somewhere on the piece. One karat equals 1/24 of pure gold by weight, in other words, 24-karat gold is considered pure gold. A 14-karat gold jewelry piece, stamped 14k, means then, that the gold is 14 parts gold and 10 parts other metals. 18-karat gold, stamped 18k, is 75% pure gold and so on. If you want to sell gold that doesn’t have any karat markings, a seasoned jeweler or gold buyer can perform a scratch test to determine the purity of the gold.

A professional gold buyer will separate your gold out into groups by karat purity before putting it on the scale to measure actual weight. Then, it is the daily market price, at the time of evaluation, that is used to give a monetary value to the gold you wish to sell. It is important to find a reputable gold buyer to ensure you get a fair price for your gold jewelry. Ralph Mueller & Associates has been in the jewelry buying trade for over 28 years, and we will offer you an unbeatable price for your gold. Contact us for more information about selling your gold today.