Scrap Gold Calculator
If you want to sell scrap gold and wonder how much money you will get, you should give this scrap gold calculator a look. It is a tool that estimates the gold value based on its weight, purity (either by karat or percent) and the market price. You can also use it for other precious metals, such as silver. If you want to learn how to use this gold price calculator, just keep reading!
Gold characteristics – what is a karat?
The term “scrap gold” refers to gold that must be melted and recycled before it is put to any use again. Your gold sample will have several characteristics that you have to define before you will be able to sell your scrap gold piece. These characteristics are listed below.
Scrap gold weight: The weight of your gold sample. You can use a regular kitchen scale to measure it, but it is always better to find a digital gram scale. These are inexpensive and will give you more accurate results. Most often, gold is weighed in Troy ounces, which are different from regular ounces. 1 Troy ounce is roughly equal to 31.103 g (1.097 oz).
Gold purity: This value describes the quality of your gold sample. The higher the gold purity is, the more pure gold the scrap sample contains. For example, gold purity of 83.33% means that the sample consists of 83.33% pure gold and 16.67% of other metals, for example copper or zinc. Purity can also be measured in karats. 24K gold is the purest – it contains 99.99% gold. Each karat corresponds to 1/24th of the scrap gold mass, so for example an 18-karat sample will consist in 18/24 (75%) of gold and in 6/24 (25%) of other metals.
Price per unit weight: You can obtain this value from various sources, for example websites with gold prices or your local gold dealer. Remember to input the correct unit of weight!
Gold value calculations example
Let’s assume you have done some tidying in your parents’ old house and have found a box of old golden jewelery. After careful inspection, you divided it into two batches – the first one is 18-karat gold (the most typical jewelery gold), and the second is 9-karat gold (a cheaper sort). You want to know how much it’s worth, should you try to sell it.
Begin with weighing the scrap gold. Let’s assume that the 18-karat scrap gold weighs 120 g, while the 9-karat gold batch weighs 350 g.
Recalculate the gold purity of each batch into percents. 18-karat gold has 18/24 = 75% pure gold, while the 9-karat gold has only 9/24 = 37.5% pure gold. If you have problems with this step, just use the fraction to percent calculator.
Multiply the weight of each batch by the percentage of pure gold. In the first batch, you have exactly 120 * 0.75 = 90 g pure gold, and in the second one – 350 * 0.375 = 131.25 g pure gold.
Add these weights. In total, you have 90 + 131.25 = 221.25 g pure gold.
Check what is the current price of gold on the market. Let’s assume it is equal to $39 per gram.
Finally, multiply the weight of pure gold by the unit price to obtain the gold value: 221.25 * 39 = 8628.75. Your box of golden jewelery is worth $8628.75!
Of course, instead of performing all of these tedious calculations, it is easier to use our gold scrap calculator :
Buying Power Calculator
If you’ve ever wondered how the real value of a certain amount of money changes over the years, this buying power calculator will surely give you some practical insight. In other words, this buying power calculator (or purchasing power calculator) shows you how much your dollar is worth in different years.
If you read further, you can get familiar with the purchasing power definition. You can also learn about why changes in the real value of your money are important in economics.
How time affects the buying power of the money
Dollars from different years don’t represent an accurate comparison of their real value. Practically, it means that you can’t buy the same amount of goods and services with the same amount of dollars in different years. For comparing the value of dollars in particular years, the older figure should be adjusted by a price index.
What is purchasing power – the purchasing power definition
Purchasing power corresponds to the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is strongly linked to the inflation, one of the most important macroeconomic indicators.
How the buying power calculator works?
To demonstrate how the purchasing power calculator works, let’s consider the following query.
In 1913, the price of a Ford Model T was around 500 dollars which was a considerable part of the average workers yearly wage of about 1,300 dollars. Now, let’s consider how the worth of these 500 dollars changed from 1913 to 2018, i.e. how the buying power changed.
purchasing power car example
To answer this question, we need to multiply the amount of dollars by the ratio of the price index in 1913 (reference year) to the price index in 2018 (the target year).
Buying power = 500 * (9.9 / 251.107) = 19.71
According to the purchasing power formula, 500 dollars from 1913 would be worth less than 20 dollars in 2018, which is hardly enough to tank up your car: this money is a tiny fragment of a price of any new vehicle sold in 2018.
It may seem shocking, however, what really matters is not the nominal price but its relation to your income. In 2018, the average yearly wage exceeded 50,000 dollars, and you could buy a new basic Ford model for around 15,000 dollars. Thus, on average, you could afford a car purchase which is undoubtedly far more advanced than the one from 1913, from a smaller part of your yearly income.
If you would like to look into whether your wage is keeping up with the buying power of the dollar, check out our salary inflation calculator.
Purchasing power and the economy
As you probably already know, the higher the inflation, the larger the loss in the buying power of your money or savings. As the range of goods and services that you can buy with the same amount of money is shrinking according to the eroding power of the cash in your wallet (or deposits on your bank account), people are more inclined to spend their money instead of holding it. This process can be tolerable or even beneficial for the economy, as it may stimulate spending, which would then contribute to a higher GDP. However, an extended precipitous decline in the buying power is an extremely dangerous phenomenon that corresponds to so-called hyperinflation.
U.S. Bureau of Labor Statistics
Krugman P. and Wells R. – Economics – Second (2nd) Edition – 2009
Mateusz Mucha and Tibor Pal, PhD candidate