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Calculating Your Nest EggThe first thing you need to know is that precious metal prices are based on a unit of measure called the TROY OUNCE (oz). A troy ounce is a different unit of measure from the ounce button on a kitchen scale.
1 ounce (on a kitchen scale) = 0.911458333 troy ounces (gold market) The SPOT PRICE of gold (or any precious metal) is based on the troy ounce and is a snapshot of that metal's price on any given day. FINE GOLD refers to almost pure gold or 24K. As a client of Gold Chick, your cash estimate is based directly on the market's spot price. In fact, you are offered 70% of your gold or platinum's total scrap value. For example, if the spot price of gold today is $1000/oz (troy ounce, don't forget), then your cash offer would be $700 for 1 oz. of fine gold (24K). What if the pieces you have are all 14K gold? Well, 14K = 0.5833 fine gold So, to get the spot price of 14K, we simply multiply the spot price per oz. of fine gold by 0.5833. Using our example above of $1000 oz. fine gold (spot price), we would multiply 1000 (spot price fine gold) x 0.5833 (purity of the gold) =$583.30 (spot price for 14K) If you have exactly 1 oz. of 14K gold, then your cash estimate would be 70% of $583.30 which equals $408.31. |
