As long as you have gold, you have a valuable commodity! Unfortunately, many of us are often misled when it comes to selling gold since we do not really understand the terms used in measurements.
Terms such as penny weight and grams are often floated around since they are units of measurement. The thing most of us don’t know is that regardless of what unit of metric system you use, the amount of money you get paid for your gold should remain the same.
Gold buyers often capitalize on your lack of knowledge and poor mathematical skills to play tricks that give you different prices on both measurements. That’s why you need to arm yourself with knowledge before you go out on selling gold for cash.
Pennyweight (DWT) and Grams Explained
Pennyweight, abbreviated as DWT, and grams are both acceptable measuring units.
Below we delve deeper into the measurements:
- 1 gram equals 1.555 pennyweights
- 1 troy ounce equals 20 pennyweight or 31.1 grams
- Pennyweight is wrongly marketed to produce better price value
- Grams are more acceptable in the global market
Pennyweight is a unit of a gram in the same way that inches are a unit of a foot. One gram has 1.555 pennyweights. If you are therefore looking to sell in grams you will multiply the pennyweight you have by 1.555 and if you are looking to sell in pennyweight divide your pennyweight by 1.555.
Troy Ounces Trick
Gold is also weighed in troy ounces. 20 dwt will make up a troy ounce and when it comes to grams, 31.1 grams will do. The thing you should always remember is that the weight will always remain the same. 31.1 grams weighs exactly the same as 20 dwt. A good example would be inches and feet. 1 foot is made up of 12 inches so should the price really differ when you buy 12 inches? The answer is obviously no but when it comes to gold, buyers will try to dupe you into believing that the price differs and this is what confuses most sellers.
Buyers will try and make you believe that if you sell by pennyweight you get a better price which really doesn’t make sense because the weight hasn’t changed.
As you can see, it is really easy to be confused when selling your gold. And this is why you can find many people who report having bad experiences when selling, especially to the likes of pawn shops.
The good news is that you can protect yourself from bad buyers. The four items, below, will help you ascertain the likelihood of getting a good price:
- Shop around for the best price and research potential buyers
- If you can, weigh your own gold then calculate its approximate value yourself
- Make sure the buyer shows prices and examples of payouts
- Make sure the buyer has a good reputation.
We have a complete write up detailing exactly how to find reputable gold buyers here.
Different gold buyers pay differently. While one may offer you $7.50 per gram the other may offer $8.50 for the same gram, it therefore helps to shop around for the best price. It is also important to do your own homework in order to identify the real value of what you are selling.
Basically, when shopping around to see who is advertising the highest prices, make sure you are comparing prices of the same weight (DWT, pennyweight, grams and ounces) and the same quality (karat) against each other. In this way, you are assured you know exactly what prices are offered.
Is The Gold You Have Real?
Many pieces of jewelry you think are pure gold could actually be faux gold, gold plated or gold filled. One of the ways you can protect yourself is to check the markings or stamps on the jewelry so you can be reasonably sure your pieces are authentic. To see a list of gold and silver quality stamps click here.
As you can see, selling gold is tricky business but knowing the terms and units used in calculating the true worth of your gold will help you make an informed decision. And, working with the right buyer is going to make a world of difference to the final price you are paid.
At the end of the day, it is not rocket science so never let your guard down because you just might get conned. Always remember that while the metric system may change, the weight still remains the same and therefore so does the price.