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RAINBOW CITY LOCATION
3422 #1 Rainbow Drive
Rainbow City, Alabama 35906
(256) 467-3393
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Buying and Selling Gold & Silver Diamonds Jewelry Care Birthstone Guide

Buying and Selling Gold & Silver

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The market price of precious metals changes by the minute according to the value as traded (per troy ounce) at the New York and London Stock Exchanges. Although this has everything to do with what you get when you buy or sell gold, most people cannot buy or sell gold at this "spot" price because when you buy or sell "stock" you are not actually getting material gold that you can touch or hold.

In order to buy or sell material gold there will be an extra cost associated, such as refining fees, shipping & handling, state laws requiring special treatment and taxation of precious metals, minting processes and desirability.

Depending on what form your precious metal has, these effects on the value of your gold can range from negligible to considerable.Generally coins and bullion have the smallest margins between buying and selling since refining is not necessary, although many states still require the taxation (AL) and special treatments (15 day holding period - Alabama) for these items.

Precious metals that need refining are quite the different story. Those such as karat gold and sterling jewelry need to be refined in order to be sold as usable bullion. This process can complicate matters when trying to figure a value for your jewelry. The mathematical percentages of karat gold and sterling (925) are as follows:

*These values are referred to as "Plum" Values
10K = 41.67%
14K = 58.3%
18K = 75%
24K = 100%
Sterling (925) = 92.5%

So, according to plum values, one troy ounce of 10K (not to be confused with a regular ounce) would contain .4166 ozt of gold. So, knowing the weight of your gold, the karat, and the "spot" market price you can come up with the market value of the gold contained in your jewelry. The problem is that not only does refining cost money, but the act of refining creates what is referred to as "melt loss" and "assay loss". Melt loss is how much actual weight you loose during the process of smelting. Assay loss is the difference in the mathematical "plum" percentage the gold should be and what the gold actually tests to be after a fire assay percentage test. This results in the "melt" value of your gold being lower than the "plum" value of your gold (usually between 2-5%).

Coin and Bullion

A coin is an item, usually circular, that has been minted for use as currency. It will usually contain a date and a denomination of value. Aside from possible numismatic value, coins have an exact and well-documented amount of precious metal and can thereafter be sold "as is" which generally removes the need for and cost of refining from the equation.
Bullion is an item (can come in many forms including circular & bar) minted to contain a specific amount of refined & assayed precious metal. You can identify bullion by looking to see if it has a specific amount of precious metal listed (usually in troy ounces) and a percentage of purity of the metal (usually .999 fine or the word "fine" which means 99.9%). Dollar amounts can be found on bullion but are generally irrelevant. Bullion has the most closely linked value to spot pricing.

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RAINBOW CITY
3422 #1 Rainbow Drive
Rainbow City, Alabama  -  35906
STORE HOURS
Mon - Fri 9:00am - 5:00pm
Sat & Sun Closed
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