Why Is My Gold Classed As Scrap?

It will often come as a surprise to many people that when they go to sell their treasured gold items such as jewellery, that they are only offered a fraction of the value of what they paid for it. Most of the time when you are selling gold jewellery to a dealer or broker, they will base the price they offer you on the scrap value of the gold or other precious metal. So what is the scrap value of gold? Well, the first thing that you will need to do before looking to sell your gold is to educate yourself on the industry and find out the value of your gold. You can find some excellent information available on selling gold jewellery on various websites which you may find useful.

Scrap Gold

The definition of scrap gold is any second-hand gold products which will not be sold and instead are sent to the smelters and recycled. The value of scrap gold is going to depend on two things, the purity of the gold or other metal that you want to sell, and also the current market price. You can quickly check the scrap gold prices at Gold Buyers Melbourne and get an up to date price which will allow you to work out the rough value of your gold.

Check The Small Print

Although there are a lot of different companies all offering to buy your gold and other precious metals from you, to get a fair price you will need to shop around. All businesses will use the latest market prices for precious metals, but where they differ is the fees and commissions that you might get charged. Not all companies are the same you will need to compare all of the local businesses to you and work out which one is offering the fairest prices.

It Is Not Always Scrap!

There are occasions when an item of gold or other precious metal, whether it is broken or not, is not always classed as scrap. If an item is of rare beauty and has some provenance, then you may find that you will receive an offer which is higher than the scrap rate for gold. Always get potentially valuable items appraised before you look to sell them and find out what they are worth before selling your precious golden jewellery.

A Big Difference In Prices

Some companies may charge you up to as much as 40% commission if you rush into selling your scrap precious metals, so you do need to do some research check out the small print of all of the companies to which you are talking. There are some unscrupulous companies out there, but on the other side of the coin, there are also many reliable and reputable ones as well, if you try and find them. So if you are looking to sell some gold for some quick cash, work out the real value of it first. Just in case you end up being hugely disappointed when you are offered the scrap value of your gold.


Besides being the main writer and owner of Life and Experiences, she is also the co-founder of Ayanize Co.

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