How Gold Prices Work
Published January 18, 2026 · 5 min read
Short answer: Gold prices are set by the global spot market. Your item's value = (weight of pure gold) × (spot price) minus the buyer's refining margin.
Understanding Spot Price
Gold is traded worldwide 24 hours a day. The spot price is the benchmark for raw gold value. When you sell jewelry, buyers reference spot price, then adjust for karat purity and weight.
Karat & Purity
Not all gold is equal. Here's a quick reference:
- 10K = 41.7% gold
- 14K = 58.3% gold
- 18K = 75% gold
- 24K = 99.9% gold
How Buyers Calculate Your Offer
A reputable buyer weighs your gold, tests karat purity, calculates pure gold content, applies the current spot price, and subtracts a small margin for refining and business costs. At Stafford Gold Buyers, we explain this process openly before you sell.
Should You Wait for Higher Prices?
Timing the market is difficult even for experts. If you need cash now, selling when spot is reasonable makes sense. For large holdings, watching trends can help — but convenience and a fair local offer often matter more for everyday sellers.