Beginner here with a question. When weighing your gold to get a idea of how much the refiner owes you, do you deduct from your actual weight 10%, 15% for the other alloys in the gold. Also what about stones. I just sent (my first) small order to ARA to see how things work and was wandering if you used some conservative calculation.
Karat is a fraction, so if you have 14k gold, it is 14/24=.583% So for that individual 14k piece, 58.3% of the metal mass is gold.
Now, the reality is, US manufacturers, 14k gold will assay somewhere in the 56% range. Old gold is more likely to assay at a true 14k.
So, if you have a ring that is 5 grams, it's like this.
5 g 14k x .583 = 2.91g Au content. Now you need to know spot value. I sold a few ounces of pure gold yesterday, it was 1220 when I sold it. There are 31.1g / troy ounce which is what spot gold measures in. So, the value of the gold is $39.22 / gram.
Now, your ring has a potential value of 2.91 x 39.22, or $114.13
So, if your buyer is paying 95% of spot, you now take your 114.13 x .95 = 108.42 which is what your check should be.
As for the taxes. Just don't sell more than $600 / year and you won't get a 1099. If you get a 1099, you have to fill out a schedule C on your taxes. Now you get to deduct all the miles driving back and forth to the beach. And the cost of your detecting gear. And other stuff. But you'll have to pay your tax preparation dude to fill out the form.
If it has diamonds in it, they have value too, but don't expect to get paid on them on a single ring. When I buy gold, if it has small melee diamonds, I just credit the diamonds as if they were gold. So, I just don't deduct any weight for the stones. Last time I sold diamonds I think I got $45/karat for the tiny buggers...which is what you end up buying.
I do chemical stone removals, but I charge $150 for the service....so it's rarely worth it on one ring. My average stone removal lot is 3-4 oz of gold. I perform the service for other gold buyers, pawn brokers, jewelry stores, etc. Then I either return the gold with stones, or buy the gold and return the stones.
