Selling Your Gold

From Selling Your Gold

how to calculate the value of your old gold jewellery

Math Of Gold – How To Calculate The Value Of Your Gold

Does the price of gold have you tempted to sell your unwanted jewellery? Before you part with your gold pieces, it may well benefit you to know the karat weight. But density, gold-plated jewellery, and pennyweight measurements can cause confusion, leading to improper karat rating for purity. What does all this mean, you ask? Don’t worry about frightening flashbacks of math class. We are going to answer how to figure out the pure gold content in any karat weight. 

What Is A Troy Ounce?

A Troy ounce is a unit of weight used for precious metals, such as gold, silver, platinum, and palladium. One Troy ounce is equal to 31.103g. A Troy ounce should not be confused with a regular “Avoirdupois” ounce, which is 28.35g. And, further complicating the definition of “an ounce,” a US fluid ounce has a volume of 29.57mL, while an imperial fluid ounce has a volume of 28.41mL.

one ounce gold coin - what is a troy ounce
A one troy ounce gold coin being weighed


What Is a Karatage of Gold?

Karatage is a measure of the gold’s purity (in percent) or fineness (in parts per thousand), with pure gold defined as “24 karat.” Karatage is not used to describe the purity of silver or any other precious metals. The purity of gold can be calculated by dividing the karat number by 24, as in the table below. Note that this “karat” should be distinguished from the “Carat,” which is a measure of gemstone weight, equal to 0.2g). 

Karatage (k, or kt) Fineness (parts per thousand) Purity (percent)
24kt 999 99.9%
22kt 916 91.6%
18kt 750 75.0%
14kt 583 58.3%
10kt 416 41.6%
9kt 375 37.5%

how to work out what karat your gold jewelery is

Why Your Old Jewellery Is Worth More Today Than You Paid For It

Jewellery is often sold to a retail customer for far more than the value of its precious metals content. This markup, which often ranges from 2 to 10 times the precious metal value, pays for the cost of the jewellery manufacturer, wholesaler, retail store expenses, wages, and profit margin. When a piece of jewellery is recycled for its precious metals content, the recycler (such as Canada Gold) pays a percentage of the precious metals content. At Canada Gold, we pay from 80% (for pieces that are refined) to 110%+ (for pieces that can be reused). Over the past 20 years, gold prices have increased by more than 500%, from $250 in 2001 to $1500+ in 2020. As a result, the gold content of old jewellery is often worth more than what the customer initially paid at a retail jewellery store. 

how to make money from your old gold jewellery
A Gold Jewellery Recycler Melts Down Gold


What Is Gold Filled?

A piece of jewellery hallmarked “Gold Filled” contains a thick plating of gold, of the specified purity, surrounding a core of brass. Interestingly, a gold-filled piece actually contains gold on the outside, and it is filled with brass. By definition, a “14k G.F.” piece contains 95% brass, and a thick, durable plating of 14kg gold, making up 5% of the piece’s total weight.  Accordingly, since it contains 5% of its weight of 14kt gold, the piece contains 2.91% pure gold by weight. Antique Pocket watches from the US are often Gold Filled, and hence do not typically contain enough gold content to justify refining them.

A Gold Filled Pocket Watch
A Gold Filled Pocket Watch


What Is Rolled Gold (RG) or Rolled Gold Plate (RGP)

These are additional terms that describe a similar gold plating process as “Gold Filled,” and the math to calculate the purity is identical.  A piece hallmarked RG or RGP contains 95% base metal (e.g. brass or copper), with an outer layer of gold, typically of 14kt or 18kt purity. A piece hallmarked “1/20 18k RG,” for example, contains 3.75% pure gold by weight (not usually worth the expense of refining).

How Much Is My Gold Plated Jewellery Worth

A piece of jewellery that is gold plated contains a very thin coating of gold on the outside, applied with an electrical process.  Hence, this technique can also be called “electro-gold plated,” and these pieces carry a hallmark of GP or EGP. The gold plating is typically less than 1 micron in thickness (less than 1/1000th of a mm!). The plating is prone to rubbing off, and the piece contains less than a few cents worth of gold. 

How To Calculate Gold Density 

Gold is one of the densest metals, with a density of 19.32g per cubic cm.  This means that a volume of gold is 19.32 times heavier than the same volume of water. Lead, which anyone who has had a dental X-ray knows, is another very dense metal, with a density of 11.5g per cubic cm.  Amazingly, gold is 68% more dense than lead. An Apple iPhone 11 has a volume of 87 cubic cm and weighs 188g. A gold bar of the same size would be almost 9 times heavier (1,680g) and have a gold value well in excess of $100,000CAD at 2020 gold prices. 

What Is A Pennyweight

Pennyweight is a fairly antiquated measurement of weight. One pennyweight is equal to 1/20th of an ounce. So 1 pennyweight is equal to 1.56 grams.  Nowadays, the most common use of pennyweight seems to be unreputable gold buyers posting rates in pennyweight instead of grams to make prices appear higher. Definitely something to watch out for!

Understanding how to calculate the pure gold content in any karat weight will help you make the most informed decision possible when it comes time to selling your unused jewellery.




Sell Gold in Calgary

Earn Extra Money: How to Sell Gold in Calgary

Are you thinking about selling your gold? Trading in your unwanted jewelry is a great way to make some extra cash. But before you set out to peddle your pieces, you want to make sure you know the proper steps to take. To help you make the most of the jewelry selling process, we have put together some handy tips on how to sell gold in Calgary.

Get an appraisal

Knowing the value of what you have is always a good idea. Whether you are selling your gold or looking to get a handle on the value of your jewelry, you will want to get your items properly appraised. Keep in mind, however, many jewelry businesses charge for this service.
At Canada Gold, we understand the importance you should place on knowing what you have. That is why we provide free estimates on all your gold items, helping you make better-informed jewelry selling decisions.

Calculate the karats

When it comes to the value of gold jewelry, it is all about the gold karats. While the chances that your jewelry might be made from pure gold is rare, you will still be able to get a great return based on the karat count of your items.
Whether you have 10-, 14- or 18-karat gold jewelry, Canada Gold pays the best price for all your gold items. In fact, if you find a higher written offer, we will not only match it, we will also beat the quote by 20% of the difference.

Consider the best time to sell

Gold is a commodity. And like any commodity, there are certain times when you can get more money for your gold jewelry, depending on supply and demand. Keeping tabs on the prices of gold online will help you get a decent reference point on when you might want to sell your gold.
Not sure where to turn for gold price listings? We update our Canada gold prices each day, so you will always have a good idea of the value of your items when you are ready to sell gold in Calgary.

Sell gold in Calgary with mail-in services

Got gold to sell but can’t get to a gold buyer? Not everyone lives near a jeweler. But just because you can’t get to one in your area, doesn’t mean you are out of luck.
At Canada Gold, we offer a free and secure mail-in option for your gold selling convenience. Once we receive your gold pieces, the results of your item appraisal, along with your payment, will be sent to you in as little as a day.

Go with a reliable gold buyer

It took a while for you to decide to part with your jewelry. Don’t put your valuable items in the hands of just any Calgary gold buyer. When you are ready to trade in your gold, choose a company you can trust.
In the gold selling and buying industry, trust means everything. Canada Gold is proud to be accredited through the Better Business Bureau. We are also the authorized DNA dealer for the Royal Canadian Mint.

Are you ready to sell or buy gold in Calgary? For quality service and the best price guaranteed for all your gold items, contact Canada Gold today!

best place to sell gold chains Canada

Best Place to Sell Gold (Locations Across Canada)

Looking to make some extra cash? Well, rummaging around in your jewelry box might be a great place to start. Selling your gold has never been easier—or more confusing. With so many options out there, finding the right buyer can be overwhelming. To help you get top dollar for your jewelry, here are some tips on how to find the best place to sell gold across Canada.

Check reputation

Never have there been so many places to sell your gold. So, it is important to do a little homework to find a reputable buyer. Check to see that they are accredited through the Better Business Bureau. It is also a good idea to investigate other trustworthy companies the buyer might be associated with like the Royal Canadian Mint or the Gemology Institute of America (GIA). A little research now can save you some major headaches, hassles, and lost money later.

Look for experience

When it comes to getting the best prices for your shiny items, you will want to choose a buyer with the right skills and experience. Using the latest equipment, the best gold buyers in Canada have expert appraisers that will provide free, no-obligation testing and evaluation of your gold jewelry, offering you premium prices on all your items.

Find a location close by

You lead a busy lifestyle. You simply don’t have the time to be driving around all day looking for places to sell your jewelry. Reliable gold buyers have established businesses all over Canada. Companies like Canada Gold even offer a handy and secure mail-in option, making selling your jewelry more convenient and easier.

Read reviews

You don’t want to hand your precious jewelry over to just anyone. When you are ready to sell your gold, go with a business that has the reputation and glowing reviews to back them up. Search online for customer reviews and testimonials. A reliable gold seller can also provide you with some recommendations.

Get the best quote

Don’t just go with the first quote you are offered. If you are expecting some hefty returns for your jewelry, you will obviously want to choose a gold buyer that offers the best price. The right business will not only match their competitor’s offer but also beat it.

Whether you are a first-time seller or an experienced gold trader, finding the best gold buyer can be a challenge. Not so with Canada Gold. We offer a free quote on your gold items, backed by our 120% price guarantee.

best place to sell gold jewelry

Where Can I Get Cash for Gold: Top Reasons to Sell Your Jewelry

Whether you’re looking to buy something for that special someone or pay off a few bills, extra cash can always come in handy. But like the old saying goes, money doesn’t grow on trees. While that is certainly true, you may have a source of income that you haven’t even considered—your jewelry box. Selling your gold pieces can fetch you a decent return, giving you some money when you need it most. If you are starting to ask yourself, “Where can I get cash for gold in Canada?”, here are the top reasons to finally sell your jewelry.

Sell Out-of-fashion gold pieces

Times change and so do jewelry trends. We’ve all been there before. That stylish necklace we just had to have is now probably collecting dust at the bottom of a drawer somewhere. Even though the gold itself is timeless, jewelry fashion has a shelf life. If you can’t remember the last time you wore (or wanted to wear) some of your jewelry, it’s probably a good idea to sell it to a reliable gold buyer.

Broken gold pieces

When your jewelry gets damaged, those once precious pieces can cause a major eyesore that keeps them out of your rotation. Why hang on to bent earrings, mangled necklaces, and broken-down watches if you can turn them into cold, hard cash instead? With a trusted gold buyer, you can easily line your wallet with money by selling off broken jewelry.

End of a relationship

It’s surprising, isn’t it? That same piece of jewelry that made you feel so close to that special someone can also fill you with sadness or anger when a relationship ends. When the mere sight of that gold ring or bracelet stirs up painful memories, selling gold pieces can help you move on.

Selling gold is easy

Long gone are the days of pacing the streets in search of an honest pawnshop to sell your gold items to. Today, you don’t even have to leave the comfort of your own home to trade in your jewelry. Simply mail in your items to a company like Canada Gold, and in as little as a day, they will send off your money, saving you the headaches and hassles of all that endless searching.

Bottom line? There are tons of reasons why people want to sell their gold. No matter your reasons, it’s great to know you have reliable, fast, and convenient options out there to get the best price for your jewelry. So, the next time you ask yourself, “Where can I get cash for gold?”, the right answer is always Canada Gold.

What we pay for your gold

We believe that having the right information and knowing what your gold is worth is the most important thing to know when deciding to sell your gold. Used and second-hand industries – from pawnshops to used car lots – have a bad reputation when offering a fair price for gold and we believe this comes from the imbalance of information between dealer and seller. The dealers often know much more about their product and it’s true value than their customer. This often results in the dealer using that knowledge to their advantage and offering the lowest price they can. If you go into a pawnshop you might expect to get a low offer and negotiate from there.  So, if they initially offer you $100 and you settle on $150 you might be very happy at first… until you learn that they would have been willing to pay $300 if needed.

We want to be a different kind of business and earn your trust with transparency and honesty by always offering a fair price. Here is how we aim to do that:

  1. We share our payout percentages here to make it easy for you to understand our margins and “what’s in it for us”.
  2. We list our gold prices online for what we offer on all gold jewellery on an up to the minute basis so you are never surprised.
  3. There is absolutely no pressure to sell and no costs for testing to make it easy to shop around.

Where Does the Money Go: Our 2017 Gold Purchase Audit*:

91% – Payouts for their gold made directly to our customers. We pay a minimum of 80% on all scrap jewellery and much more for bullion, premium jewellery, and large amounts of gold. In 2017, our average payout for refined gold was 91% of the market rate of gold.

4.8% – Wages, Rent and Overhead.

2.7% – Marketing and outreach

2% – Profit

0.5% – refining cost

Our business is based off volume and we help people cash out on millions of dollars of gold every year. We strive to keep our costs as low as possible while still offering the highest level of expertise and a safe place to sell valuables.

Other businesses that pay less often have much lower volumes and much higher costs per dollar of gold they bring in.

Is Now the Right Time to Sell?

Our prices over time are based on two factors: the current market price of gold, and our percentage payout.

Market Price

In terms of the market price for gold, as of early 2018, we are at about $1700/oz which is way above the long-term average and over 90% of the all-time high reached in 2012 of around $1800/oz. So, based on past gold prices, this is one of the best times to sell. Projecting forward is much harder and at any given moment you can find lots of varied opinions on whether gold prices and going to go up or down. We never try to time the market with our sales and refining, but we have lots of customers who keep a close eye on what’s happening with gold price to decide when to come in.

Our Payouts:

When we opened for business, gold was around $600/oz (compared to around $1700/oz as of May 2018) and our prices started at 73% of spot price for scrap gold – which was significantly over the industry average of 40%-50% offered by most local and mail-in buyers. As we have grown, higher volumes and better testing have allowed us to raise our starting and minimum prices to 80% of the market value in our gold. In addition, we now pay much higher prices for premium items such as bullion, coins, jewellery with diamonds, brand name items, and large purchases. Factoring in all gold purchases, our average cash for gold payout was 91% of spot price in 2017 – our highest payout percentage ever.

Do you pay the most?

A quick google search will find lots of articles like this one that show that most gold buyers across the industry pay between 30-60% of the market value for scrap gold. In’s post, one buyer even offered 9%! Canada Gold offers a minimum payment of 80% of the spot price of gold in Canada, and higher for bullion, premium items, and larger transactions. In many areas, our prices are the highest advertised price out there!

Obviously, the advertised price is not everything though, and what really matters is getting the highest actual offer for your gold. Differences in how the metal is tested (the composition of the gold, any subtractions for stones, etc), fees and minimums, and the occasional dishonest dealer –  we recommend checking with the Better Business Bureau – make it much better to actually compare offers for your gold rather than just the listed prices (warning though – if the dealer does not list a price or won’t tell you over the phone what they pay they almost always offer very low rates). We are very confident that the offer you receive from us will be the highest, and if you do receive a higher offer we will beat that price by 120% of the difference.

Higher payouts lead to more business, more referrals, and more happy customers!

Do all items get melted down?

While most of the gold we buy does get melted down, about 5% of the items we see do actually get polished, repaired and resold. By buying gold with the intent to resell, we are able to offer higher prices for these items. We also buy and resell diamonds and bullion.

Here are some of the things we consider when determining if an item can be resold – and a premium price offered:

  1. Are there any diamonds in the piece? We always pay a higher amount for items with diamonds.
  2. Is the piece from a brand name like Tiffany or Cartier? Again, we always pay a premium for high-end brand name items.
  3. Is there a resale market for this item? Items that are still in style and purchased in the last few years, antique jewellery, and staples (diamond studs, eternity bands) are the most likely to fit into this category.
  4. How heavy is the item? While we pay a premium price for heavier jewellery, often this gold was purchased and popular when the market value of gold was much lower and the piece more affordable. Heavy jewellery (chains etc.) are usually melted downs. Smaller pieces with a high degree of craftsmanship and intricacy are more likely to be resold.
  5. What kind of condition is the item in? While we do repair many pieces before reselling them, this does add to our cost. Some items move from the online store to the melting pot based on condition.  

If you want to get a fair price for your gold, visit one Canada Gold’s locations in Vancouver, Surrey, North Vancouver, Richmond, Hamilton, Ottawa, Calgary, Edmonton, Toronto, Ottawa, or Halifax, find one of our nearby locations here. Canada Gold is accredited with the Better Business Bureau and is an authorized DNA dealer for the Royal Canadian Mint.


*This breakdown is based on our gold purchases we refine in aggregate (so does not include items we resell like bullion or premium jewellery). Individual transactions range from payouts of 80% to 99.2% of market price. If broken out, smaller transactions would have a larger percentage of value going to wages and overhead and profit, while still returning 80% to the customer. Larger transactions paying over 91% would obviously be the opposite!

Gold price in Canada

What is Gold Karat?

The term “karat” has been used for centuries to as a unit of gold purity. This is not the same as “carat” which is a measurement of diamond weight. Normally we see 10k, 14k, or 18k jewelry, and naturally the higher you go the more pure the gold is. But what do they really mean?

Let’s start with 24k gold, which is pure, 100%, real mccoy gold. From now on, think of every piece of gold as having a purity that ranges between 0 and 24. So, if we have a 10k piece of gold, that means 10 parts of 24 is gold, and the other 14 are other alloys. This equates to 41.67% gold and 58.33% of other alloys. Here is a chart that lists out the other purities.

gold karat

What other alloys are being used to make up the rest of your jewelry? There are an array of alloys that are typically used, such as silver, copper, nickel, zinc, or palladium. Some metals are chosen over others to alter the color. For example, “rose” gold has parts of copper to give that reddish color, and white gold is mixed with a white metal like silver, nickel, or palladium. Obviously the higher the Karat the higher the price of gold you can ask for.

The Gold Refining Process – how gold is refined

The Five Stages of Metal Refining: From Ore to Pure

The Royal Canadian Mint refines their gold using these five steps:

1. Pre-melt

Doré bars in purities ranging from 5% to 95% are melted in a furnace. Dip samples are taken from the molten gold to determine its purity.

2. Chlorination

Chlorine gas is injected into the molten metal mix. All metals but gold float to the surface to form a slag of molten chloride. The resulting 995 fine gold is poured into an anode mould.

3. Degolding

Soda ash is added to the molten chloride slag recovered from chlorination. The reaction causes gold particles to collect in a silver-gold alloy ‘button’ that settles at the bottom of the crucible.

4. Electrolysis

This process brings gold to 9999 purity. The gold anode is placed in a bath containing a solution of hydrochloric acid and gold chloride. The anode is then subjected to an electric current. The anode dissolves, and the dissolved gold plates onto a titanium cathode. Impurities (mostly silver) fall to the bottom of the cell or form soluble chlorides.

5. Final pour

9999 fine gold is cast into bars of various sizes or turned into granulation gold.

The Gold Refining Process

Turning Old Gold Into New Memories

What Would You Do With a Little Extra Cash?

Having served thousands of customers all across Canada, our gold buyers get to hear all sorts of different stories from many clients about how they acquired their items, where they came from and how long they’ve been sitting around. But often it’s the story about what people plan to do with the windfall from cashing-in their unwanted items like old gold that’s most interesting.

Here is a recollection from one of our buyers:

“I remember speaking with a divorcee from Vancouver who was finally ridding herself of all the jewellery she had received from her estranged husband over the years. The old jewellery that she never wore had been sitting at home collecting dust and she thought it might be worthwhile to bring it down to our store.

She came in with her friend who was planning on going to the outdoor equipment store next door afterwards to pick up some supplies for a camping trip that they were planning.

When we handed her over $2000 for the items that she had brought in she smiled from ear to ear. The money she got from her old jewellery was more than enough to pay for all of the camping equipment they were going to buy, it would pay for all the camping trips they were planning that summer.

When she thanked me for helping out, I could tell that she was quite happy with the situation and would be up for a joke, so I said that perhaps she should thank her ex-husband. She and her friend laughed hysterically all the way to the camping store and seemed to be pleased that an unpleasant chapter in her life had been turned into a fun day turning a new page.”

We see it all the time; when people bring in old memories so they can start over and use the money for something important in their lives, it really seems to be a great way to heal old wounds. Who would have thought that a trip to Vancouver Gold could be just as useful as (and much more profitable than) a trip to the psychologist!

Another heart-warming story we heard recently was from a single mom who was just trying to scrape together some money to go on a nice holiday with her daughter:

“My daughter has always begged me to take her to Disneyland, it’s been one of her dreams ever since she first heard about the place. I’ve never been able to afford it, and I certainly didn’t think I had enough old jewellery lying around to pay for it, I was just planning on taking her to a theme park near Seattle.

When I got a cheque for over $3200 from Vancouver Gold I was blown away. I finally had enough money to take my daughter to Disneyland and make her the happiest little girl ever!

I can’t thank Vancouver Gold enough, you were professional throughout the whole process and really helped us to fulfill my daughter’s wishes, thank-you!”

A big thank-you to all our customers who keep our jobs so interesting and make it all possible.