How To Value Your Gold Chain

So exactly how much is your gold chain worth in physical gold?  The value can be calculated using simple mathematics and a digital scale.  Pure, 100% gold is referred to as 24 karat gold (24K). 

 

Typically a gold chain is 14K or 18K gold, which means the physical gold is being mixed with other metals to create a stronger, tougher to damage, gold chain.  These other metals can be any combination of nickel, copper, silver, or zinc.  For the purposes of our valuations, we are going to assign a gold chain value solely on its gold content, as the other metals' value are fairly immaterial.

The only piece of equipment needed to value your gold chain is a digital scale.  You can go to your local post office if you don't have a digital scale at home.

 

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

14K gold chain valuation example

1.  The gold content in a 14K gold chain 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 chain is weighed next.  For this example, our gold chain weighs 10 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 chain (10 ounces) X's the live bid price of gold ($1,900), and multiple the sum by 58.33% (.5833).

10 ounces x's $1,900 per ounce equals = $19,000

$19,000 X's 58.33% = $11,083.33

In conclusion, a 14K gold chain that weighs 10 ounces contains physical gold content worth exactly $11,083.33

18K gold chain valuation example

1.  The gold content in a 18K gold chain 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 chain is weighed next.  For this example, our gold chain weighs 16 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 chain (16 ounces) X's the live bid price of gold ($1,900), and multiple the sum by 75% (.75).

16 ounces x's $1,900 per ounce equals = $30,400

$30,400 X's 75% = $22,800

In conclusion, a 18K gold chain that weighs 16 ounces contains physical gold content worth exactly $22,800