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09/29/2023 5:45 AM     Current Market Spot Prices:     Gold:  $1,873.03/ozt   Silver:  $23.08/ozt   Platinum:  $934.06/ozt   Palladium:  $1,313.28/ozt  

Thursday, August 26, 2010

Gold Buyer Unit Descriptions and Conversions

Precious metals are bought and sold in troy ounces and grams.

When someone speaks of something weighing an ounce, the chances are, that they are referring to an Avoirdupois Ounce. Unless, they are referring to an ounce of gold, silver, platinum, gemstones or gunpowder. In which case, they are referring to a Troy Ounce. The two ounces are not the same!

The avoirdupois system is a system of weights or mass based on a pound of sixteen ounces. It is the everyday system of weight used in the United States. It is still widely used by many people in Canada and the United Kingdom despite the official adoption of the metric system.

The pennyweight is an archaic weight used in the valuation and measurement of precious metals. Jewellers may still use the pennyweight in calculating the amount and cost of precious metals used in fabricating or casting jewelry. Similarly, dentists and dental labs may also use the pennyweight as the measure of precious metals in dental crowns and inlays.

A pennyweight is a unit of mass which is 24 grains, 1/240th of a troy pound, 1/20th of a troy ounce, approximately 0.055 ounces or approximately 1.555 grams.

Carat is a unit of mass for gemstones and pearls, equal to 0.2 gram or 200 milligrams. Karat is a unit of purity for gold, where one karat is 1/24th purity by mass.

Grains are currently used in the United States and Canada to measure the mass of bullets and gunpowder, and scales for handloading measure in grains; bullets are generally measured in increments of 1 grain, gunpowder in increments of 0.1 grains. An avoirdupois ounce is equal to 437.5 grains, whereas a troy ounce is equal to 480 grains.

The most common solid gold hallmarks are the karat stamps; 8k, 9k, 10k, 14k, 18k, 21k, 22k. Other hallmark stamps include; 333, 375, 417, 583, 585, 750, 875, 916, 917, 999. These all represent the permillage gold or “fineness” in the alloy of the item, 333 being 33.3% or 8/24ths gold (8k), 417 being 41.7% or 10/24ths gold (10k) etc.

One troy ounce [ozt] is exactly 31.1034768 grams

One avoirdupois ounce [oz] is exactly 28.349523125 grams or 437.5 grains [gr]

One pennyweight [dwt] is approximately 1.555174 grams

One grain [gr] is exactly 0.06479891 grams

One carat [ct] is exactly 0.2 grams. The carat is divisible into one hundred points of two milligrams each.

One troy pound [troy] is exactly 12 troy ounces [ozt], 5,760 grains [gr], or 373.2417216 grams [g]

One troy ounce [ozt] is exactly 20 pennyweights [dwt], or 480 grains [gr], or 31.1034768 grams [g]

One pennyweight [dwt] is exactly 24 grains [gr], or 1.55517384 grams [g]

One avoirdupois pound [lb] is exactly 16 avoirdupois ounces [oz], 7000 grains [gr] or approximately 14.5833333333 troy ounces [ozt]
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Posted by Michael Gupton at 12:00 AM 0 Comments

Thursday, August 26, 2010

Appraisals - What Do They Really Mean?

 Appraisals for jewelry serve to inflate the value placed on an item, (often up to 300%), for several reasons.

1. An appraisal ensures the retailer a significant profit when a lost insured item is replaced at full retail price with no “50% off sale”
2. The insurance industry profits from appraisals because the items value is so inflated that the consumer typically takes out extra insurance to cover the inflated cost of replacement. The inflated value may compel the consumer into getting extra insurance because it’s “worth so much”! Ask yourself, worth how much and to whom?
3. Appraisals lull the consumer into feeling they received a great deal from their retailer because the appraised value may be two or three times the retail amount paid. Appraisals may lead the consumer to place too much value on their items, and as a result they may pay hundreds of dollars in insurance riders. Your beautiful bracelet appraised at $1000 may only contain $150 worth of gold!

Something is only worth what someone else will pay for it.

The world’s precious metals markets determine the gold price based on supply and demand, definitely not on appraisals.

If you still believe that appraisals best serve the consumer you might take your appraised jewelry into the retailer that supplied it and ask how much they would buy the item for, right now, in cash. Think it will be the appraised value? Think again…

Jewelry has an artistic appeal and may have an emotional element tied to it which may increase the value of the thing. Once the artistic appeal becomes unappealing and the emotional element has faded… it’s just gold.

There are additional costs besides precious metal in making jewelry, such as hand labour and manufacturing, but just like electronics and used cars the retail buyer pays the initial depreciation.

Precious metals are bought and sold on many different open and free markets around the world.

There are never 50% off sales in the precious metals markets.

KMG GOLD buys precious metals at the best flat percentage rate based on the world market price!
Posted by Michael Gupton at 12:00 AM 0 Comments