Understanding the Market Price or "Spot Price" of Gold and Silver can be a bit of a learning curve, but once you get the basics, it involves very simple mathematics. The Market Price of Gold and Silver is basically set and based on supply and demand on a Global Scale. It is very similar to the Stock Market. When the Gold and Silver Markets are open, the price fluctuates by the minute. From here on out I will refer to the Market Price of Gold and Silver as "Spot Price", as it is commonly referred to.
The Spot Price of Gold and Silver refers to one (1) Troy Ounce of either Fine Gold or Fine Silver. It is very important to understand that Precious Metals are bought and sold in Troy Ounces, not normal kitchen ounces. A Troy Ounce equals to 31.1 grams, where as a "standard ounce" or "kitchen ounce" has 28 grams. At Texas Gold and Silver Buyers of San Antonio, we run into this confusion on a daily basis, and feel the consumer, or person looking to sell their Gold or Silver items, needs more information out there, to educate themselves on the ins and outs of the Precious Metals Market. It is also very important to understand that the Spot Price of Gold and Silver is referring to FINE Gold and Silver. What do we mean by Fine Gold and Silver? The Spot Price correlates to one (1) Troy Ounce of .999 Gold or Silver. (99.9% Pure). Fine Gold can also be communicated as 24k Gold. Most Silver Jewelry is Sterling Silver which means it is 92.5% Silver, not 99.9% as the Spot Prices are quoting in troy ounces.
Most jewelry is karated gold such as 10k, 14k, 18k, etc. The easiest way to calculate percentage of gold content from karats is to divide whatever karat of gold you have by 24. For Example:
10 karat jewelry -- 10 divided by 24 = .417 (translation 41.7% Gold)
14 karat jewelry -- 14 divided by 24 = .583 (translation 58.3 % Gold)
18 karat jewelry -- 18 divided by 24 = .750 (translation 75.0 % Gold)
This equation will continue to be accurate and correct for any karat (overseas gold sometimes ranges up to 23k). Rarely and I mean very rarely Jewelry can be crafted from Fine Gold, but this is very far and few between.
So if you are interested in correlating the Spot Price of Gold to a Troy Ounce of karated gold such as 10k or 14k. Simply take the current Spot Price and multiply it by 41% for 10k, 58% for 14k, 75% for 18k, etc. The mathematics will give you a better understanding of what the current market prices are for karated gold. The Spot Prices correlate directly to .999 Gold and Silver. Gold and Silver Bullion are Fine Gold and Silver (.999) and correlate directly to the Spot Prices. Very rarely is Gold Jewelry ever Fine Gold, as it is very Soft and not feasible for daily wear. If you multiply the spot price of Gold by the correlating percentage of karated gold, you can then take that number and divide it by 31.1 to get a 100% value of per gram pricing.
At Texas Gold and Silver Buyers of San Antonio, we feel very strongly that the ins and outs of Gold and Silver prices should be transparent, NOT a secret. We strive to educate the general public on some of the more difficult things to understand in the world of Gold and Silver. Our hopes are that an educated customer, will be better prepared when venturing out to sell their items. We are an open book when dealing with our customers and put Honesty and Integrity FIRST. Many of our competitors will not much like the fact that we are putting all this information out there for you to read, but the way we see it if you are running an honest business, there should be zero concern.
Here is an up to date Market Price (Spot Price) of Gold and Silver.
Thanks for stopping by our blog. My name is Evan and I am the owner of Texas Gold and Silver Buyers in San Antonio. From time to time I will post blog entries to help educate and inform our customers and potential future customers on all aspects of Precious Metals (Gold, Silver, Platinum & Palladium!)