A person must be aware of the purity and complexity of gold and its fluctuating market rates while purchasing this precious metal. For becoming successful by investing in crap gold, you must know the right process of judging quality of gold and offering fair yet profitable prices to the sellers.
Almost always, gold comes combined with an alloy. When gold is pure and is devoid of any other metal, it is referred to as gold of 24 karat. Decrease in the number of karats indicates that the gold you are buying contains other metals. 
Pure gold is always more costly than alloyed gold. This means you will have to spend less money for buying scrap gold of 12 karat than scrap gold of 24 karat.
How will you know the price of gold you are buying? The first step of buying gold in weighing the entire amount of scrapped gold you are wishing to purchase. Now divide the gold’s karat by 24 and multiply the result with current gold price. Almost every day the price of gold all around the globe changes; this change occurs in the market price of 1 troy ounce gold. 1 troy ounce means 31.1g. If 1 ounce gold’s market price is $1,200, then price of 1 g gold would be $38.58. This means for buying 1 g gold of 18 karat, you will have to spend (18/24) x $38.58= $28.935.
For making profit by investing in scarp gold, you must take 10-20% reduction from the running market price of gold. This reduction will have to be varied depending on the karat of gold you have. Extraction of low karat gold requires more expenditure that extraction of high karat gold. So, higher reduction is required while dealing with low karat gold.
