If you have gold, you have a valuable asset! Unfortunately, many gold buyers are misleading the public regarding the way that gold is measured.
Vocabulary like “penny weight” and “grams” are often used because they are units of measurement. It seems simple, but the reality is that regardless of what word is used, you should be paid the same per unit.
Gold buyers will sometimes take advantage of their knowledge and give the seller different prices on the same measurement, interchanging the terms to confuse the seller. This is why we have spelled out the terminology here, so you can sell to us in confidence.
Pennyweight and Grams
Pennyweight is abbreviated as DWT. Pennyweight and grams are both common measuring units.
Below we dig in to the measurements:
- 1 gram is equal to 1.555 pennyweights
- 1 troy ounce equals 20 pennyweight or 31.1 grams
- Pennyweight is sometimes incorrectly marketed to produce better prices
- Grams are more commonly used and acceptable in the global marketplace
The conversion from Pennyweight to gram is simple. One gram is equal to 1.555 pennyweights. If you are trying to sell in grams you will multiply the pennyweight you have by 1.555 and if you are trying to sell in pennyweight divide your grams by 1.555.
Perhaps the most common term thrown around in the metallurgical world is “Troy Ounce”. Gold is also weighed in troy ounces. 20 pennyweight will make up a single troy ounce and when it comes to grams, 31.1 grams will equal one troy ounce. Don’t let the terminology confuse you. The weight will always be the same. 31.1 grams weighs exactly the same as 20 pennyweight. Just like there are always 12 inches in a foot and a foot is always 12 inches. Don’t let a buyer change the terminology when they are discussing your gold. This can be confusing, and if they are not consistent could cost you money!
Just remember that no unit of measurement makes your gold any more or less valuable. 2 troy ounces of gold is worth just as much as 40 pennyweight.
Selling your gold can be very confusing. Many people will complain about their bad experiences selling their gold, and rightly so. If they used a non-reputable buyer (perhaps a pawn shop) they could have very easily been burned.
We want to protect you from these bad buyers. The four pointers, below, will help you be sure that you are getting a good price:
- Ask around for the best price and research your potential buyers
- Try to weigh your own gold then calculate its approximate value yourself (just remember to check the current prices online!)
- Make sure the buyer shows you the prices he/she is using and examples of payouts
- Make sure the buyer has a good reputation, check with the BBB or check online for complaints.
Different gold buyers pay differently. While it is not wrong for someone to pay $7.50/gram there are buyers that will pay more. Do yourself a favor and make sure you are getting the best rate.
When you are shopping around be sure to go by the same unit of measurement to avoid confusion. If you are getting quotes in pennyweight stick to pennyweight, so you are keeping yourself on the same page. Also keep in mind that the karat weight of the gold will make a difference, so be sure to ask what the buyer is assuming you have. Arm yourself with as much accurate information you can.
As you can see, selling gold can be a tricky business. However, if you know the terms and units used in calculating the value of your gold you will be able to make an informed decision. Working with the right buyer is going to make a big difference to the final dollar amount you receive.
Just remember, if the person talking to you about buying your gold is unwilling to show you the math, or explain the calculations, you might not be in the best hands.