With gold prices rocketing, you may have wondered how much your gold jewellery is really worth, understanding the calculation can help you get a fair price from a reputable gold buyer. In this guide, we’ll explain how to estimate your gold’s value using the spot price per gram and highlight key UK hallmarks to look out for when assessing your golds purity.
Gold value is calculated based on weight, purity and a price per gram.
Step 1: Understand the Gold Spot Price
The spot price for gold is the market price for one troy ounce of pure gold (24ct), and is changing constantly based on global supply and demand. The price is usually quoted in US dollars but conversion to British pounds can be easily found online. Since most our scales in the UK measure in grams, we can convert the gold spot price to make the calculation easier.
- Find the Spot Price: Check reliable financial news or precious metals websites such as the Royal Mint for the latest price.
- Convert Ounces to Grams: There are approximately 31.1035 grams in a troy ounce.
- Calculate the Price per Gram:
Example:
If the spot price is £2,300 per troy ounce, then we can divide this by 31.1035 to get us the price per gram.
£2,300 / 31.1035 = £73.95 (spot price per gram of pure gold)
- Step 2: Determine the Gold Purity
Gold jewellery is rarely 100% pure in the UK but can be found in Indian and Asian jewellery; it is usually alloyed (combined) with other metals for increased durability, and in some circumstances to alter the colour or hue. In the UK, there are strict hallmarking rules and purity marking is a requirement by law. The most common marks include:
- 916 (22 carat): Contains 91.6% gold.
- 750 (18 carat): Contains 75% gold.
- 585 (14 carat): Contains 58.5% gold.
- 375 (9 carat): Contains 37.5% gold.
Understanding these marks is essential, as they tell you what percentage of your gold is contained in your jewellery piece. It’s important to note that these hallmarks are extremely small, especially on rings and earrings, and a jewellers loupe will normally be required to clearly see these.
- Step 3: Calculate the Gold Content
Once you know the purity of your piece, you can calculate how much pure gold is actually in your item.
Pure gold weight (grams) = Total item weight (grams) x Gold purity fraction
Example:
If you have a 9ct necklace weighing 50 grams with a hallmark of 375 (or 37.5% purity), then:
50 x 0.375 = 18.75g (Pure Gold Weight)
- Step 4: Estimate the Value of the Jewellery
Now you have established how much pure gold is in your necklace, you can then multiply this pure gold weight by the spot price per gram.
Gold Spot Value = Pure gold weight (grams) x Gold price (per gram)
Continuing the example:
18.75 x 73.95 = £1,386 (Gold spot value)
This calculation gives you a baseline value based on the current spot price. Keep in mind that refiners and gold buyers will require a profit margin on this, and will offer less than the spot price, if the jewellery piece isn’t considered scrap and can be retailed you may achieve a higher price. To get a valuation for your gold from a trusted gold buyer, use an instant gold value calculator to get an offer for your gold.
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- Final Thoughts
By following these steps you can establish what your gold is worth at spot price. This gives you a bench mark to work from if you are looking to sell your gold online or on the high-street. Being equipped with this knowledge can allow you to enter into negotiations confidently, and puts you in the driving seat. Market timing also plays a factor, so keep a check regularly on the gold spot price and observe any pricing trends.
Disclaimer: The values calculated here are based on the current spot price and may fluctuate with market conditions. Additional costs and fees may apply when selling gold jewellery.
