The price of gold is hiking day by day. You may be lured into selling some pieces of gold jewelry that are no longer in use. But do not impetuously go after the price of the gold in the market. All you have to do is know some basics before selling pieces of gold in the bullion market. Otherwise you may end up selling your valuable piece of gold in much lower price.

It is doubtless to say that most of us have some sort of jewelry lying around as junk gold jewelry. It may be either old or out of fashion. The pieces of unused gold jewelry might come from occasions in the past like rings you wore the year you graduated high school, bracelets you got as birthday gift in your 12th birthday or the ring your ex-boyfriend bought and since then you have not been wearing those.

The main thing you must understand before turning these jewelries to gold buyers is that you will get only the price worth the weight of the gold. So quality and quantity of gold in the scrap gold jewelry determines the money you are going to make from that piece. So, when selling gold jewelry you might want to look for other pieces like gold dental crowns or obsolete plain wedding band in order to turn them into money that you can really use.

A gold buyer pays you for your gold jewelry by considering the factors like the karat weight of the gold, the weight of the piece you are selling, the price of gold at the particular day of sale, the fee for assaying the piece and the profit margin. Generally the price offered in a particular day is for 24 karat gold or pure gold. So, if you have scrap gold jewelry that is not pure then you might get less money based upon the percentage of pure gold in the particular piece. For example, if your jewelry is 22 karat then the pure gold in it is 91.7% and you can easily calculate the rough figure you are about to make from its sale with the help of the price you are getting for 100% gold that day. Some deductions are made for the amount of gold that is likely to be lost during melting down and transforming. Next, you can deduct the profit margin the buyer is likely to set while purchasing your gold jewelry. Now, you can have a rough guess on how much money you are going to make out of your scrap gold.

Do not rush into selling gold scraps at much lesser prices. Do take time on making a rough guess on how much money a buyer is willing to pay for your gold jewelry. This way you are sure to make a decent amount of money from sale of your scrap gold jewelry.

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