[Jewelry making - Article 00166] - Re: [Orchid] Sharing scrap gold buying prices

[richard hart]

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    A formula to find out what the gold is worth is to take the spot
    price, say $900, divide by 24 (24kt), multiply by the karat the item
    is, say 14kt., divide by 31.1 for grams or 20 for pennyweight. Then
    you need to decide how much to pay below that price. 

    The people I know who buy are usually about 80-85%. 

    So $900 divided by 24 =$37.50, assuming the item is 14kt, multiply
    by 14 gives you $525 as the value of the fine gold in an ounce of
    14kt. Divide $525 by 31 1 gives you $16.88 as the value of the 14kt.
    per gram. 80% of $16.88 is $13.50, multiply that times the weight of
    the item, let's say 5 grams, you can pay out $67.52. 

    People I know who do this can acquire 50 ounces in a few days and
    have it refined. If you have to collect it over a period do time, you
    have to figure out how it would work for you with the length of time
    you have to hold it and the fluctuation of the market. 

    Basically if you get 97% from a refiner, if you pay out 80%, you
    will make 17%, at $900 an ounce you will make $153 per ounce. 

Richard Hart
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