Current Gold Prices

The Scrap Gold Prices are associated with the current gold bullion prices but not necessarily the same. With the current gold prices today at $1168.71 on November 24, 2009, some people think they can make a fortune off of what they have lying in their jewelry box but this is not necessarily true.

Scrap gold is different than gold bullion in several ways. Gold bullion is pure 24 k gold, while most scarp gold is not. Jewelry from the middle east is generally 18 k gold while in Europe and America it can be found as 10K, 12K and 14K in most cases. These numbers represent the percentage of gold in the jewelry. 12 k gold is only half gold and half alloy. 18k is ¾ th gold and ¼th alloy. This is why the price for scarp gold is lower. Not only is there an alloy present but the scrap has to be processed and this cost money and reduces the price.

The amount a scrap gold dealer charges is usually between 10 and 20% of the overall value of the gold if you bargain. The opening bid from the average scrap gold buyer is only around 50% to 60% of the actual value. They will site refining cost and handling fees, but in most cases none of that is done. Most scarp gold that is in the form of jewelry that is not damaged is resold as jewelry at the retail price.

By knowing what the true value of your scrap gold, prices that are offered to you may not be what you want to settle on. Know the true value and be ready to bargain to receive the best price.