Confused over buying gold nuggets? I have been gold mining here in Alaska for over 30 years. Hopefully this guide will help.

What is gold worth? Good question ! As I write this ’spot’ gold price is $592.00 a troy ounce (10/20/06). Quoted spot gold price is for 99.999% pure gold bullion, not NATURAL PLACER GOLD !

What is the difference? Well, gold in bullion form mainly comes from hard rock or ‘lode’ mines where the gold was extracted from its host rock, then melted down and poured into bars with the impurities removed. Natural placer gold, in the form of dust, flakes, or nuggets is just that…. NATURAL. Just the way it came from the river, creek, or bench deposit. Natural placer gold is never “pure” gold. As an example, gold from Alaska’s Fortymile district runs from 70%-90% gold, the rest being mainly silver.

Natural placer gold is very rare. Less than 1% of gold production is in natural placer gold nugget form. As a result placer gold is much more valuable, with the value increasing as the size of the gold nugget increases. Remember, less than 1% !

Let’s move on to size. Placer gold is generally screened and sized prior to selling. As an example -14/ 20 mesh gold is gold that will pass through a 14 mesh screen, but will not pass through a 20 mesh screen. When buying on eBay make sure the seller has some reference that shows you the actual size of the gold flakes/nuggets!

How about the weight? Be careful …. read the auction description closely! Sellers list in Troy ounce, Pennyweight (dwt), Grams, or Grains. A grain is a much smaller weight than a gram. Here is a reference.

1 gram = 15.4 grains
1.5 gram = 1 dwt (pennyweight)
24 grain = 1 dwt
31.1 grams = 1 troy oz
20 dwt = 1 troy oz

I hope this helps. Whether you are buying gold to be made into jewelry, add to your collection, or an investment. On eBay read the sellers description closely. Pay attention to the size reference and to how the weight is listed.

Have fun and GOOD LUCK bidding !!