How To Check The Value Of Gold

The importance of gold has been in the minds of human beings for ages now. Since ancient times, it has been considered as a symbol of wealth and prosperity. It’s a precious metal that can make the value of money go higher by itself. The demand for gold has increased over time due to many reasons, but, still, most people aren’t aware of the real significance of gold.

In today's world, the price of gold has gone down quite a bit from its peak, but this doesn’t mean that it’s no longer valuable. As long as human beings exist, they’ll always need gold in their lives and will never forget their love for gold.

However, despite the importance of gold in the financial community, many still don’t know how to determine the value of gold. Checking the value of gold is crucial, especially if you’re planning to make gold investments to help with your retirement in the future.

Thus, if you’re into gold these days, this article will show you how to properly check the value of this precious metal.

1. Know The Current Price

Knowing the value of your gold can help you get valuable information as you begin investing in it. Typically, there’s an exact formula for computing the per gram value of your precious metal, and one of the factors to consider in the calculation is the current market price of gold. To help you determine the current price, you can search the Internet or take a look at the local newspaper.

However, you should also understand that the price of gold changes on an hourly basis based on the supply and demand. Because of this, you should check out the Internet from time to time to get some updates on the current price of gold.

2. Determine The Purity Of Your Gold

Another way to find out the value of your gold is to determine its purity. Generally, a gold’s quality is reflected in karat, which is used to measure the metal’s purity (ranging from 1 to 24). And, to calculate the percentage of purity, the first step is to divide the number of karats by 24. This means that a 24k gold can be 100% pure, while a 12k gold can be 50% pure.

After knowing the purity of your gold, you should measure it on a scale to find out the value of the precious metal. Usually, gold prices are indicated per troy ounce. And, if you want to know how many grams there are in an ounce of gold, you can check some reliable resource websites for more detailed pieces of information.

3. Check The Melt Value

When checking the value of your gold piece, you should also determine the precious metal’s melt value. To do this, you should take into account the gold’s purity, which is quoted by percentage, the weight, which is measured in grams, as well as the current price per gram.

For example, you have a 14-karat, 22-gram gold piece priced at USD$1,600 per ounce and USD$51.447 per gram, and with a purity percentage of 58.3% or 0.583. Once you have all the figures determined, the next thing to do is multiply everything, and the calculation will provide you with a melt value of USD$659.86 for your gold piece.

Remember, the more you know the melt value of the gold you have, the more you can calculate its actual and real value.

4. Go Through The Assaying Process

In most cases, a gold piece has to go through the assaying process to determine its true percentage. Assaying refers to a process in which a gold sample is processed and assessed for purity. In such a case, the piece will be melted, separated, and weighed to come up with a purity value. When you melt down the gold, it’ll lose weight due to the alloys being used in the assaying process.

Bottom Line

With today's economy being in such a downfall, investing in gold can be one of the best things you can do to ensure your financial future. Hence, if you want to know how to check the value of gold today, then, keep the tips mentioned above in mind to help you get started.

And, if you think you’ll be using your gold as investment in the future, you should start researching and learning all about gold trading to make sure that the gold you’re buying is worth investing in. That’s because if you don’t do this, you’ll end up losing money on this investment.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes