Need some math lessons

[The.Boomer]

I have a couple of really great sources for used jewelry. But being able to price it well I think depends on my being able to do the math. So can any one tell me how to figure everything based upon spot prices for PMs, taking into account the Karat of the PM. For instance a 3mm white gold wedding band at $875 spot what would be a good offer ? What about Grams ? If the ring weighed say 3 grams how would I figure the value ?

BTW I know that buying PMs as rounds, bullion etc.... is safer and a better deal. But I do love the jewelry, so what can I say, other than this is my thing.

P.S. I am buying rounds and nuggets from APMEX.com as well for investments.

 

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[The.Boomer]

Anyone know or am I not being clear with my question ?

 

[jim4silver]

I have a couple of really great sources for used jewelry. But being able to price it well I think depends on my being able to do the math. So can any one tell me how to figure everything based upon spot prices for PMs, taking into account the Karat of the PM. For instance a 3mm white gold wedding band at $875 spot what would be a good offer ? What about Grams ? If the ring weighed say 3 grams how would I figure the value ?

BTW I know that buying PMs as rounds, bullion etc.... is safer and a better deal. But I do love the jewelry, so what can I say, other than this is my thing.

P.S. I am buying rounds and nuggets from APMEX.com as well for investments.

Here is a rough lesson (I am no expert mind you).

Most coin stores go by pennyweights when they buy from you. One pennyweight equals 1.55517 grams.

You will need a nice scale with you when you buy gold jewelry. If the item is 14 karat gold, then it is 14 divided by 24 pure, if 10 karat, 10 divided by 24, etc. Because 24 karat gold is pure gold. Thus something that is 14 karat is 58% pure gold.

A good site that lists pennyweight melt at current spot is http://www.coininfo.com/. Go to the bottom of the page and you will see what I mean. They actually give the price in grams and pennyweights so you don't have to do the calculations yourself.

Also, when you sell the coin store is not usually going to give you spot value because that is what they get when they sell your stuff to a smelter. I guess you could cut out the middleman and send yours to a smelter if you know and trust them.

Make sure you know what you are doing before you spend a bunch of money on jewelry, or you could lose some $$$.

Jim

 

[The.Boomer]

Thanks Jim and Just, Got a pretty good grasp on it now, I think, maybe, well guess I'll have to see.

If you take the current spot price and multiply it by the percent gold, then divide that by 31.1 which is the weight of a Troy Ounce in grams, you'll get the value per gram at spot.

So say the spot price of gold right now was $800 per Troy ounce
800x divided by 31.10 =
99.99% for 24k 25.7209 per gram
75.00% for 18k 19.2926 per gram
58.30% for 14k 14.9967 per gram
41.70% for 10k 10.7266 per gram
So a gold ring that weighed 8 grams and was 14k would be worth around $120.00

 

[dazoff]

You got it Boomer. Dan