Scrap Jewelry in Today's Market What's It Good For?

Gold is everywhere in the news these days.

- MARK D. FARRELL

With prices climbing steadily, and sometimes by $50 in a single day, it's no wonder people are starting to ask questions. Maybe you've asked yourself the same. What about that old jewelry box sitting in the back of the closet? If it's filled with gold and gemstone jewelry, the thought might cross your mind: maybe it's time to turn this forgotten treasure into something useful. Cash it out and take that trip you've been dreaming of. Trade it in and roll the value into a new piece of jewelry you'll actually wear. Or maybe use one of those old rings to fix something you love but haven't had the budget to repair.

Whatever your situation, understanding your options is the first step. Once you see the landscape clearly, you'll know which method best fits your goals.

UNDERSTANDING GOLD & VALUE

At the time of writing, gold is trading at $4,350 per troy ounce for 24-karat (.999) gold — the highest it's ever been. That number may sound straightforward, but there's nuance beneath the surface.

First, metals are measured differently than dry goods. Jewelers and refiners use troy ounces (31.33 grams) instead of the traditional ounce (28 grams). For quick calculations, many jewelers break this down further into pennyweights (dwt). There are 20 pennyweights to a troy ounce, and since 20 divides and multiplies more cleanly than 31.33, it makes the math simpler when evaluating small amounts of gold.

Second, not all gold jewelry is pure. In the U.S., the most common gold alloys are 10k, 14k, 18k, 20k, 22k and 24k. European jewelry sometimes features 9k instead of 10k, and dental gold is often 16k. The “karat” number tells you the purity of the alloy. Essentially, how many slices of a 24-piece pie are pure gold. A 14k ring, for example, is 14 parts gold and 10 parts other metals.