Cash for Gold Co Tells Their Customers Exactly How They Determine How Much to Pay for Their Gold

Now is the time to get the best advice on buying gold from the experts. There are many reasons to read, but the best one is due to the fact that the price of gold is on the rise.
 
Jan. 6, 2012 - PRLog -- Los Angeles, CA – Cash for Gold Co, one of the leading Internet buyers of precious metals, is always happy to tell their customers  how they determine the current value of the gold, platinum and silver items they send-in. This still seems to be a confusing subject to many, so the answer bears repeating once again.

According to Joe Montes, president, “Despite all that’s been written on this subject, many sellers still don’t seem to understand just how much actual gold their jewelry contains and how Cash for Gold Co determines what it will be worth at the time when they receive it.

There are two major factors that we use. The first is what an ounce of gold is worth at the time that we assay it and the second is just how much pure gold that any jewelry item contains.

The Value of Gold  

Gold is a commodity traded globally and the price at any given time is a matter of supply, demand and public perception. In general, when the demand exceeds the available supply, the price rises; when the supply exceeds the demand, it falls. Supply and demand are, in turn, affected by many external factors including the value of the U.S. dollar; the price of oil, inflation, etc.; factors that are too complex for discussion here. Currently, gold is still valued at a high price.  It closed today at $1,612.30/ounce.

Gold Purity  
When Cash for Gold Co receives a seller’s gold, platinum or Sterling silver items, they must be assayed to determine their purity. Most gold jewelry is marked with a symbol such as 24K, 18K, 14K or 10K. This indicates just what percentage of the total weight of a setting is gold. The rest is other alloys added to improve the hardness and durability of the jewelry over time. We only pay for the gold content because the alloys have little if any value. Here’s an important point: Precious metals are measured in Troy Ounces which is a bit more (1 Troy Ounce = 1.097 avoirdupois Ounces) than the familiar ounces we use in everyday life. Therefore, if the current spot market price is $1,612.30/ounce, it is a Troy ounce. Here in the USA we often use the avoirdupois ounce for everyday weighing. Every time you step on the scale at home, or weigh food found in a grocery store, you use the avoirdupois ounce weight system. There are 16 avoirdupois ounces in a pound.
1 avoirdupois ounce = 28.35 grams. 1 avoirdupois pound contains 16 (avoirdupois) ounces. This makes an avoirdupois pound equal to about 453.6 grams, or the equivalent of 14.583 ‘troy ounces’.
A Troy ounce is often broken down into Pennyweights expressed as (DWT). Here, 1 Troy ounce contains 20 DWT. That means, for example, that at $1,612.30/Ounce, each pennyweight is valued at 1/20th, or $80.62.  Thus, if a seller sends-in a gold chain that contains 20 DWT of 24K gold (99.99% Gold) it would have a total current value of approximately $1,612.30.

One other factor comes into play during the assay process: The actual percent of pure gold content in a given piece. If a piece of gold jewelry is marked 18K it contains 75% gold; 14K contains 58.33% gold; 12K has 50% gold and 10K has 41.67% gold. Thus, if the gold chain mentioned in the paragraph before this one was marked 18K instead of 24K, it would be worth 25% less or $1.209.22. As the Karat number goes down, the amount of gold content goes down and the value drops correspondingly.”

Cash for Gold Co buys gold of any age, type or place of manufacture and also buys platinum and silver, which are valued through the same process. Sellers then receive the highest-possible percentage of the actual value of their property, which is 100% less a modest deduction for company overhead and a small profit.

FOR MORE INFORMATION

CASH FOR GOLD
Joe Montes, President                                                                    
e-Mail: info@cashforgoldco.com
Tel: 1-(888) 544-6532

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When you choose Cash for Gold as the company to buy your gold jewelry, you will be dealing with the one Internet buyer who will pay you the highest possible percentage of market value.
End
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