How To Value Your Gold Necklace

How much is your gold necklace worth in physical gold?  The value depends upon two simple factors (1) the weight of the gold necklace and (2) the purity of the gold, or how many karats.  Pure, 100% gold is 24K gold.  Because 24K is soft and malleable jewelry such as necklaces are rarely made out of 24K gold in modern times.

In order to value your gold chain you'll have to look at the clasp of the chain to see the "karat" value.  

The only piece of equipment needed to value your gold necklace is a digital scale.  You can use a digital scale at a local post office for free, go to a local jewelry store, or buy a small digital scale for as little as $12 at Walmart.

 

Below are two examples of valuing gold necklaces based upon 14K and 18K gold content:

14K Gold Necklace Valuation Example

1.  The gold content in a 14K gold necklace is equivalent to 58.33% gold.  This percentage is derived from the calculation14K divided 24K (14/24) in order to establish the percent of gold content of 58.33%

2.  The overall weight of the gold necklace is weighed next.  For this example, our gold necklace weighs 6 ounces

3.  The live (current) price of gold can be found for free at online gold bullion dealers.  Kitco.com is a popular online website to view current gold prices.  The "bid" is what a buyer is willing to pay per ounce, and the "ask" is what a seller is willing to sell gold per ounce.  For our example, we will use a bid price of $1,900.

4.  Calculate the gold content value by multiplying the weight of the gold necklace (6 ounces) X's the live bid price of gold ($1,900), and multiple the sum by 58.33% (.5833).

6 ounces x's $1,900 per ounce equals = $11,400

$11,400 X's 58.33% = $6,649.62

In conclusion, a 14K gold necklace that weighs 6 ounces contains physical gold content worth exactly $6,649.62

18K Gold Necklace Valuation Example

1.  The gold content in a 18K gold necklace is equivalent to 75% gold.  This percentage is derived from the calculation18K divided 24K (18/24) in order to establish the percent of gold content of 75%

2.  The overall weight of the gold necklace is weighed next.  For this example, our gold necklace weighs 20 ounces

3.  The live (current) price of gold can be found for free at online gold bullion dealers.  Kitco.com is a popular online website to view current gold prices.  The "bid" is what a buyer is willing to pay per ounce of gold, and the "ask" is what a seller is willing to sell per gold ounce.  For our example, we will use a bid price of $1,900.

4.  Calculate the gold content value by multiplying the weight of the gold necklace (20 ounces) X's the live bid price of gold ($1,900), and multiple the sum by 75% (.75).

20 ounces x's $1,900 per ounce equals = $38,000

$38,000 X's 75% = $28,500

In conclusion, a 18K gold necklace that weighs 20 ounces contains physical gold content worth exactly $28,500