Terminology surrounding gold and silver may sometimes be unclear or difficult to understand, especially when you’re doing research before having your gold and silver pieces appraised. What do the numbers on gold and silver mean? And why does everyone keep talking about karats? What is the price per troy ounce or the spot price of gold?
In this article, our goal is to introduce you to the most common terms you might stumble across when you’re looking into understanding the materials and worth of your gold and silver pieces.
Karats
Karats (K) indicate the purity of the gold. In other words, karats tell you how much of the item is pure gold. Some of the most common karats in gold are:
- 24K = as pure as gold you can get (99.9%)
- 18K = 75% pure gold
- 14K = 58.5% pure gold
- 8K = 33.3% pure gold.
Karats (K) measure the purity of gold based on a 24-part system. In other words, 24 karats mean all 24 parts are gold, while 14 karats mean that 14 out of 24 parts are pure gold.
You might often also see the term Carat (Ct), which may cause some confusion. While karat tells you the purity of the gold, carat refers to a diamond’s weight, and has nothing to do with gold.
Marks
While the purity of gold can be expressed in both karats and using the millesimal system, the purity of silver is almost always indicated by a three-digit number stamped on the back of a piece. The mark tells you the purity of the material in millesimals:
- 999 = as pure as silver you can get (99.9%)
- 925 = 92.5% silver, also called Sterling silver
- 830 = 83.0% silver (common in older vintage pieces).
So, why is 925 called Sterling silver? Sterling silver is named after the 12th century standard of 92.5% purity to be used in jewellery, utensils, and household items. To this day, it is the most common purity of silver. Pure silver is very soft and fragile as a material and is seldom used in anything other than collectibles or in investment pieces.
The purity of gold is colloquially most often expressed in karats, but on the piece of jewellery it is marked using a similar millesimal system as for silver. It is thus important to understand which millesimal mark corresponds to what karat. Some of the most common marks used for gold are:
- 999 = 99.9% pure gold (24K)
- 750 = 75.0% pure gold (18K)
- 585 = 58.5% pure gold (14K)
- 333 = 33.3% pure gold (8K).
In addition to purity or fineness marks, gold and silver pieces may have several other marks that tell the item’s story. For example, you may find a maker’s mark, year mark, or a location mark. While the marks give more information about when and where the item has been made, they do not add to the metal’s value.
Full Hallmark
Another important term to know and understand is Hallmark, sometimes also seen as a full Hallmark. A full Hallmark is achieved when the item is marked with a purity mark, a maker’s mark, and an official assay office mark. At the moment there are four active assay offices in the UK: London, Birmingham, Sheffield, and Edinburgh that all have their own marks.
Despite all the different marks an item can have, the value of the material is determined from these three components: purity + weight + spot price.
Spot Price or Price per Troy Ounce
The spot price is the real-time global market price that gold or silver is sold and purchased at on the international market. The spot price serves as the base reference price for gold all over the world. The global economy, inflation, fluctuations in currency, and demand from investors, among other things, all affect the spot price that changes daily.
The spot price is sometimes also referred to as the price per troy ounce. One ounce is equivalent to approximately 31.1 grams, so when the price per troy ounce hits USD 2,000, it means 31.1 grams of pure 24K gold is valued at USD 2,000, or approximately GBP 1,500.
What Does Rhodium Plated Mean?
Especially white gold is often plated with rhodium to reinforce the surface and properly shield it from scratches and tarnishing. Rhodium is a noble metal that not only protects from tarnish, but also gives the surface a shiny finish.
Rhodium changes the colour and finish of the metal, but does not affect the metal’s value. Moreover, although the rhodium plating may wear off with time and make the white gold piece more yellow, the price of the gold is not affected. The value and price for gold always depends on the purity and weight of the item, not the condition or colour of it.
Scrap Value
The scrap value for gold and silver is the value of the metal when it is melted, rather than the value based on design, brand, or resale value. The scrap value consists of the weight of the item, the purity of the material, and the spot price on the world market. The condition, age, or design of the item does not impact scrap value, as scrap value only depends on how much pure gold or silver the item contains. Scrap value is just another term for the metal’s value.
Gold-filled and Gold-plated
All that is gold-coloured is not always real gold. A gold-filled or gold-plated item means that the item has a base metal core and only a layer of gold on top, making it look like real gold even if it is not.
Gold-filled and gold-plated items may often lack marks completely, but can sometimes have marks such as GP (Gold Plated), GEP (Gold Electroplated), or GF (Gold Filled). Gold-filled items have a much thicker layer of gold than gold-plated items and they usually last a lot longer before tarnishing. Even though they contain real gold, the amount is so small that it usually doesn’t add much value when selling.
When you understand the terminology, selling is easier
When talking about gold and silver, many of the terms used may seem unclear or too technical from a consumer’s point of view. At the end of the day, they all tell you the same thing: how much of the item consists of a noble metal and what the value is made up of.
When you understand the terminology, it also becomes easier to understand and see the value of the jewellery and other items you own. The small marks, weight, and purity all contribute to the real value of your gold and silver.
Loved and well-used pieces may have missing or tarnished marks, which makes for the perfect opportunity to bring your items to Gold Arthur for a free appraisal with no obligation to sell. Our Gold Experts will check the purity and weigh the items for you on site, and you receive a fair and clear valuation for all your items. You can bring as few or as many items as you want, even if you are unsure of their materials.
