Buying and selling scrap gold is an age old endeavor.

Tips for Buyers - Check the reputation of the seller carefully. The scrap gold found here is coming from a wide range of sources.

Look for the purist forms unless you have the equipment to extract the gold from the other metals.

The purity of gold is as follows:

24 karat is 999.99 fine
22 karat is 916.6 fine
18 karat is 750 fine
14 karat is 585 fine
9 karat is 375 fine

Tips for sellers - be aware of the exact karat ratio of the gold you have. Most common jewelery scrap is 18k. Although you'll also find 10k, 14k and sometimes the purist 24k gold. It's usually stamped on your gold.

Identify the spot value of gold by going online - it's currently hovering around 900-950 a troy oz.

Weigh each separately, or take to a reputable dealer and have them weigh it for you. Be prepared to pay less than full value - up to 20% below spot value.

I wouldn't advise sending your gold by mail to the scrap merchants that advertise on TV - they are known to undervalue the gold substantially. If you don't have much of a choice in the matter, then be clear on your weights and take a firm stance with your acceptance offer.

by: Avery Webb