Value of Gold: How Does It Affect Your Investment?

A good investor who wants to stay afloat in the gold trade market should ensure be knowledgeable about the latest trends involving the value of gold in the market – getting the best deal in selling or buying even the tiniest scrap of gold greatly depends on the current spot price of the precious metal.

So, how can you know the price of gold in the market today? The most convenient way to find out is to look it up online or check on the local newspapers. Here you will get an idea of the gold price per ounce that you’ll need to refer to when calculating the price of your product.

Here are simple steps that you can try for a rough calculation of the value of your gold:

First, check for the gold’s karat rating. For jewelry, this is often inscribed on the jewel. If it’s a coin, you can consult a dealer or numismatics expert to give you its real metal value. Next, obtain the weight of the gold using a jeweler’s gram scale. After that, get the current price per ounce of gold in the market (this is often expressed in ‘per troy ounce’, which translates to 31.1 grams. To get the price per gram, divide the price by 31.1.). Finally, divide the karat fineness of your gold by 24 and multiply the quotient with the current gold price per gram. That would give you the market price for your gold.

For example, suppose you have a 14 karat gold. Divide it by 24 (that’s 0.58) and then multiply it by the current price per gram, say 53.11. That would be 0.58 x 53.11 = 30.8 (this would be the price for your gold). If the gold product weighs 10 grams, you multiply 30.8 by 10, resulting to 308. This means that your gold product weighing 10 grams with a 14 karat fineness would be worth $308.00 in the market if the current price per gram would be $53.11.

The current ‘price per ounce’ for gold today lays around $1650 (that’s $53.11 per gram, as used in the example).

Of course, gold price varies every day as dictated by the laws of the market. To better familiarize yourself with gold price, you can ask for the service of online stores that will provide you quick and accurate appraisals of your gold products. They can help you do the math and give you sound advices on the current market trends.