The Golden Formula

The value of gold in the refining process is calculated using a universal formula:

The US Dollar Gold Price

The gold price is in constant change, but is always based on the US Dollar and must be converted into Australian Dollars.

The US-Australian Dollar foreign exchange rate

Since the gold price fluctuates in US Dollars, it is sensitive to the daily changes in currency exchange rates. If the gold price stays the same but the AUD weakens in relation to the USD, the value of your gold in AUD increases.

31.1 grams in a troy ounce

The unit of weight in which the spot gold price is listed is the troy ounce. There are approximately 31.1 grams of gold in a troy ounce.

Gold Purity

Gold in jewellery or any other non-bullion form needs to be refined ñ the item must be melted down, the non-gold components removed, and the pure gold extracted. 9K gold is 9/24 parts gold, or 37.5% gold and 62.5% other metals. 18K gold is 18/24 parts gold, or 75% gold and 25% other metals. The higher the gold content in your items the higher the value.

The Weight of the Gold

While the daily gold price is listed in troy ounces, gold prices are often quoted according to gram weight. There are approximately 31.1 grams in one troy ounce of gold.

Weight loss from Refining.

During the refining process, there is an unavoidable loss of gold weight which must be deducted from the estimate of total extractable gold.

Refining Fees

Costs involved in the refining process.

Margin

The allowance for business costs and profit is the reason that quotes from various gold buyers may vary. Please be cautious of companies quoting the full gold price on websites or over the phone.