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Salient Tips on Determining the Gold Price and Purity

The gold price fluctuates on a daily basis and there are many factors that need to be considered for buying or selling this precious metal. Gold is a transition metal that is found in alluvial deposits and rocks as grains or nuggets. This metal creates alloys with other metals due to its malleability. It is used in coins and jewelry as it does not get affected by air or moisture. The color of gold is yellow and by adding varying amounts of silver and copper, other gold alloys such as rose gold are created.

Karat is the unit of purity.

Gold content of alloys are generally measured in carats (kt or K). Karat is the unit of purity for the gold alloys. The value of gold has been used as standard for many currencies and to represent royalty and purity. Jewelry using high karat gold is more expensive. It is not possible to use pure gold to make exquisite jewelry as it is very soft metal. Pure gold is considered 24 karats. Different metals such as silver, zinc and copper are mixed with gold to make jewelries. One unit karat of gold equals 1/24 parts and this indicates the parts of gold used and parts of other metals present in any jewelry item.

People do not generally purchase 24 kg gold as the metal is very soft and can get damaged easily. There is a difference between the terms ‘Karat’ and ‘Carat’. While the gold unit for purity is the Karat, Carat refers to a unit for mass used to measure the weight of pearls and gemstones. One carat is equal to 200 mg. The purity of gold is generally tested with electronic testing kits or acid test kits. It is important to remember that a small amount of gold is lost when using the acid test kit.

The purity of gold.

The purity of gold is 999.99 per thousand which means that 0.01 impurity is found in refined gold which is difficult to remove. 24 karat gold is generally considered 100% pure gold. Gold is available in different varieties such as 10 karat, 12 K, 18 karat, 22 karat and 24 karats. 12K would be 0.5 or 50% pure. All these values are sold and depending on the purity, the gold price is measured. The purity of gold has nothing to do with the weight of the sample.

Measuring Gold Weight

When you buy or sell gold, a scale is used to determine the weight in terms of grams. One ounce is equal to 28.35 grams. Gold prices are quoted per troy ounce. Divide the current price of gold by 31.1 grams which is equivalent to one troy ounce. If you wish to calculate the melt value of the gold you possess, you should multiply the weight of the gold, measuring in grams. The other method is to measure the purity of the item, using percent or you can multiply the per gram price of gold.

It is possible to be confused about the gold prices, making charges, polishing charges and other facts when buying gold. The price is based on the construction, design and purity of gold. The value of the jewelry is higher when it contains a high purity of gold.

It is important to purchase gold from reliable dealers. If you plan to sell your gold on a particular day, check the gold price determined for an ounce of pure gold on that day. It is important to realize that gold is never purchased at market price. One has to pay broker fees and watch the rise and fall of the value of gold. This can be done by checking the rates daily or perusing stock pages.