Mining for gold is a challenging activity that can turn out to be highly rewarding – both from a personal and a financial point of view. However, estimating the value of your finding can be just as tough as the mining process, especially if you are still oblivious about the actual worth of your placer gold.
So, is placer gold worth anything? Placer gold is the sediment that you find gold in, and it does contain gold to a percentage between 70% to 90%. Still, it also contains residues of other materials such as platinum, silver, copper, or mercury. The worth of your gold placer depends on its amount, purity, and current market value of pure gold.
There is a little more you should know to increase the value of your placer gold and ensure that you are offered a fair price. Read on!
Table of Contents
What Is Placer Gold?
Finding placer gold is the ultimate objective of gold prospectors. Placer gold comes into existence when atmospheric agents erode a lode deposit. This process can take several decades, but when it does, the residues are transported by the course of a stream.
Since it is much heavier than the surrounding particles, gold, as well as other minerals, tends to create sediment on the streambed. This sediment is what miners refer to as placer gold.
However, aside from containing gold, this material can contain other minerals and metals, such as copper, silver, platinum, or mercury. These substances can be present in different percentages and affect the level of purity of the gold. However, it is essential to remember that gold is always present in placer gold, consequently increasing the value of your findings.
Lode Gold vs. Placer Gold
The difference between the two is essentially where a miner finds the metal.
- Lode gold: Lode gold mining is the practice of extracting the gold from general rocks in the form of lodes or hard stones. These mineral deposits can be found in the cracks of the rocks, and they are the original form in which gold can be found.
- Placer gold: Placer gold mining is the practice of washing the sediments at the bottom of a streambed to find gold. Indeed, “Placer” refers to an accumulation of sand and minerals that contain valuable materials such as gold. This process is often carried on with a pan or sluice box.
As we have seen above, the gold found in placer golds is not pure and might contain traces of other materials. In turn, these might decrease the value of what you have found. Other deposits prospectors aim for include eluvial deposits — particles of gold washed away from the lode that have not reached a stream course yet.
How Much Is Placer Gold Worth?
Generally, the value of your placer gold is calculated by estimating the amount of pure gold in it. That percentage is then valued at the current market price of gold. However, the more impurities your placer includes, the lower it will be its worth.
Buyers often offer a price that is around 85% of the current gold market value.
In any case, it is worth considering that the income you can see from it does depend on the buyer and your evaluation. Depending on whether you are selling the placer to an expert buyer or coin shop, you might also need to consider an assessment fee.
Factors Influencing the Worth of Placer Gold
Several factors can influence the price you can expect a buyer to pay. Understanding them can give you better chances to obtain a fair price for your placer gold.
1. The Current Value of Pure Gold
The value of gold does fluctuate over time, so the price at which you can sell it is completely dependent on market conditions.
Gold is usually priced in dollars and measured in troy ounces, one of which is the equivalent of 31.103 grams. A troy ounce is around 10% heavier than a standard ounce (28.349 grams).
The price of this metal has changed over the years. However, its value has been continuously increasing in the last decade. To check the current price of gold, visit GoldPrice.org and view their graphs.
2. The Quantity and Shape of the Gold Placer
Naturally, the amount of placer you are selling will make the difference in the price a buyer can offer you. Indeed, you will need to take into consideration that the real worth of the placer gold is equal to its weight minus the number of impurities and contaminants from other materials.
The quality of the gold represents another influencing factor in your placer. Indeed, fine grains or sand-like gold is usually valued much less than other more significant pieces such as nuggets. This is because fine gold will need to undergo a somewhat more complicated process to be useful on the market.
3. The Percentage of Gold in the Placer
As well as the weight of your placer gold, it is essential to estimate the amount of valuable gold in it. As mentioned above, most placers contain other materials such as copper, mercury, silver, and even platinum. However, most gold buyers will not pay for these lesser materials.
If you are selling your placer gold to a gold buyer, they might be happy to examine it for a small fee. However, if you are dealing with a coin shop, you might be asked to hire an external examiner that can determine the amount of gold in the placer.
4. Any Fee the Buyer Might Apply
Buyers often offer a price that is around 85% of the current market value. However, additional fees that the buyer can apply to the transaction can decrease the value of the placer gold and your overall income.
Indeed, while you will often be able to find multiple buyers interested in buying your gold, some will charge more substantial fees than others. These fees are for the processing of the placers, but can also include the material’s examination and assessment.
How to Increase the Worth of Placer Gold
One of the best ways to ensure that you are quoted a fair price for your placer is to ask multiple buyers. Different shops and buyers will be searching for various characteristics in the placer and will probably pay different prices.
Ultimately, to increase the value of your placer, you should:
- Pick a buyer that understands the value of your placer and is willing to offer a fair price. However, you should not forget to compare the different fees they might offer. In some cases, it is easier and more affordable to allow a buyer to conduct the placer’s examination rather than hire an external professional.
- Clean the product. Indeed, gold sediments and nuggets can be stained and marked by the black sand found on the streambed and other materials. Cleaning them before selling them can increase their value. More importantly, the buyer might avoid charging yours for the cleaning process the gold might need.
- Avoid manipulating the gold or melting it, as this will decrease its market value.
Conclusion
Placer gold might contain an amount of gold equal to 70% to 90% of the total weight of the placer. The rest of the sediment is usually composed of other minerals and metals, such as copper and silver. Naturally, the value of your placer gold will depend on the current price of gold, as well as the percentage of pure gold in it.
However, there are other affecting factors that can decrease the value of your findings. These include the fees charged by a specific gold buyer, as well as the shape of the gold sediments.