Are gold nuggets pure gold?
Are they really worth a king’s ransom?
Are they the ultimate symbol of wealth, power and prestige to be found in nature?
When people say that you are worth your weight in gold, is that a compliment?
Of course it is!
Gram per gram, natural gold nuggets are some of the most beautiful and intriguing pieces and symbols of wealth that you can find. They come in all shapes and sizes from wild and spectacular, to subtle and subdued.
However, there are many myths and misconceptions about them.
In this article, we will debunk five of the most common myths about gold nuggets.
Table of Contents
Myth 1: Gold Nuggets Are Pure Gold
Gold nuggets are between 75 to 95 percent pure.
The veins which are mined are always a mix of other materials that are part of the gold structure.
Placer gold that is found tumbled in waterways may be lower in purity than gold that is dug from mined veins of gold because it is more alloyed with other metals.
Natural Alloys Found In Gold Nuggets
Gold comes in nature containing several different alloys and minerals.
Depending on the area that it is found or mined, gold can have silver, copper, zinc, quartz or ironstone in it.
Many nuggets still have the quartz attached to it, which gives it a unique and dramatic appearance.
Most of the quartz is white in color, but in certain areas located in the foothills of California there will be black and even pink quartz with gold veins running through it.
What Karat Gold Are Gold Nuggets?
The karat of gold nuggets depends on where it was mined.
Certain parts of the world, such as Australia, are well known for having the highest purity and yellow richness of the nuggets found in nature.
- The gold nuggets in Australia range in purity between 92% to 95% pure, which is 22K to 23K gold.
- California gold is found to be between 82% to 93% pure by mass. The interesting thing about California gold is that 80% of it is still in the ground, unmined.
- Alaskan gold is said to be at the lower end of purity starting at 70% pure.
Can You Find Pure Gold In Nature?
Pure gold is generally not to be confused with the alloy material which is intertwined and formed alongside it.
You may find a gold vein that is up to 95% pure, but there will always be some other matrix of another metal or rock found with it.
Gold is found in its purest form as nuggets, but can also be found as flakes or dust.
Nuggets are the most valuable because they are rarer to find and require less processing to extract the gold.
Myth 2: Gold Nuggets Are Worth A King’s Ransom
What is the value of a King’s ransom?
Which King? Where?
Gold nuggets have been the standard of monetary value since humans began to trade.
However, in some countries in the world there are other things more valuable than gold such, as natural rubies or alexandrite for instance.
Gold nuggets have more value than pure gold bars or coins from the perspective of intrinsic value because they are more attractive and can make a more dramatic piece of jewelry.
Gold has been around since the formation of the earth and man has recognized the rarity and beauty of gold nuggets when they are found.
Kings have always hoarded gold throughout history and have offered gold as a literal ransom for something, or someone, held captive.
How Much Gold Nuggets Are Worth
Gold nuggets are worth more than their counterparts of gold coins.
While this may seem strange given that gold coins usually have a greater refined purity, gold nuggets are the most beautiful in their natural raw form.
People use nuggets to wear in every conceivable type of jewelry, but the same cannot be said for gold coins or gold bars.
Gram per gram, and purity for purity, gold nuggets are worth twice the amount of gold coins simply because of their appearance and natural properties when the matrix, such as quartz, is still attached or intertwined.
This is called a “specimen gold” and is highly prized by collectors, particularly if the specimen has unique/rare properties.
Myth 3: Gold Nuggets Are Only Found In Rivers
Gold is formed in mountains of rocks or deep inside the earth, and it is unassociated with water unless those gold bearing rocks manage to tumble down into water.
As torrents of rain water erode the mountains and rocks that form the gold veins, the water through time and velocity of movement will break the gold away from its natural matrix, and because of the density and weight, it will tumble down with the watershed to find its lowest level.
Placer gold and small nuggets are found in waterways of all types such as rivers, creeks, dams and can be found just about anywhere that the earth has a natural formation of gold present.
Just think of it as pouring a bucket of rainwater on top of a sand castle at the beach.
The water will wash the castle downward, and so it is likewise with gold.
Where Gold Nuggets Can Be Found
Those elusive gold nuggets are found in the most unsuspected places, but largely, they are found wherever quartz is formed in nature.
If you observe a river’s flow, and if there has even been any quartz bearing mountain or hills on either side of the river, then this will be an area where gold can be found.
If there is a sudden drop over a waterfall, then this will gouge a hole as it hits the floor of the river.
Gold can be pushed along and over the flow and get stuck in the hole otherwise known as “glory holes” because large amounts of gold have often been found in these.
Likewise, if there have been seasons of torrential rains that have carved out new paths of erosion, down a mountain side, gold will be blown out along with all the other rock and debris and will go downstream and get stuck in “vugs” which are cracks and crevices under the water.
Accumulation of gold can be found in active waterways that run from one town to another as it gets pulled along and stuck among tree root systems and clumps of foliage.
The next place where gold may be accumulated is where two rivers meet.
These are called confluence placers.
The region where the rivers or creeks meet has high turbulence and complex rotations which will cause the flow of water to either slow down or to have a sudden change in directions.
This will lead the gold to not move forward with the flow but to settle down in a calm region in the river. Some exceptionally rich gold deposits have been found at the confluence of two rivers.
Gold can be found in the bedrocks that lie beneath a river which may have some nuggets or flakes trapped in its cracks.
Other good places can be in the bedrocks that lie beneath the river which may have some nuggets or flakes trapped in its cracks.
Finally, gold can be found in the earth where veins are mined from areas where quartz form.
How Deep Is Gold Usually Found?
It seems as if there is no such thing as a mine that is too deep.
The deepest gold mine travels 2.5 miles down into the earth and is located in South Africa. This mine is still active. Most of the world’s gold actually comes from China, South Africa and Australia.
Myth 4: Gold Coins Are More Valuable Than Gold Nuggets
If you were to go shop for gold coins, then you will find that the market for them is governed pretty much by the daily spot market price.
If a seller tried to ask more than 10% above that spot price for a gold coin, then they simply could not sell it.
The same goes for buying as it does for selling.
The market is very rigid on the value of gold coins because the market is set by several banks, chair members, and oversight committees who calculate the value based on supply and demand.
Enter gold nuggets.
Because gold nuggets are of various gold content, alloys, sizes and shapes, their prices are not set or governed by the Market Trade committees.
A seller can ask whatever the market will bear and there will be no one who can challenge them with spot pricing.
Gold nuggets have always commanded a higher price than gold coins because of their intrinsic value within the jewelry and mining trades, rather than simply by purity and weight.
The vast majority of gold can be found in factory made jewelry or in coins.
Whenever you are able to find raw natural gold nuggets for sale, they will command double the price compared to what their counterparts in gold coins weigh.
Myth 5: Gold Nuggets Are Hard to Sell
Gold nuggets are easier to sell than gold jewelry, but not if you are bringing them to pawn shops or sending them to refineries to sell.
Pawn shops are notorious for offering the lowest possible prices for gold nuggets, stating that the purity is in question.
They will always buy your gold nuggets, but they will never pay what it is worth.
Sending your nuggets to refineries is only going to net you the exact same amount for the purity of your gold as any other type, including jewelry and coin gold.
So then, who exactly should you sell to?
You should take your nuggets to jewelry stores who specialize in custom work or have eclectic items in their store, and to Antique shops.
These are always on the lookout for gold nuggets and they have a network of dealers who want to buy for themselves or for their customers.
If your gold nuggets are especially interesting looking, as most nuggets are, then you will get a premium for them.
If they are smaller placer gold, then jewelry stores will want to buy and incorporate them for making various items for sale.
FAQ’s About Gold Nuggets
How can you tell if a nugget is real gold?
The most tried and true method to find out if your nugget is real gold as opposed to mica or pyrite is to take it to a pawn shop or jewelry store for testing.
They will test it with either acid for purity, or they may have invested in an electronic tester if they are buying a lot of used gold jewelry.
What rock is gold found in?
Gold is most often found in gold bearing quartz. This is where the gold is found in veins and is mined out of the rock.
What’s the difference between gold nuggets and placer gold?
Placer gold is the gold dust or small size accumulations that are found in waterways, rivers and streams; and are the result of being washed down from mountains and earth formations that contain gold.
Nuggets are usually found in crystal or vein formations in the earth and are mined on all 7 Continents of the world.
Nuggets can be quite large and people who love them will often wear a heavy nugget on a chain, whereas placer gold is usually what you see in those small vials floating in water and sold in old town mining area shops.
Jewelry stores will buy and use the placer gold because the smaller size is perfect for adding a natural and rustic finish to gold jewelry.
Final Thoughts
Gold nuggets are not pure gold, but they are still valuable; often worth twice as much as gold bullion.
Pawn shops and refineries will not give you the best price for your nugget, so it is best to sell to jewelry stores, antique shops or collectors.
These places will pay more for your nugget because they can use it in their store or resell it to one of their customers.
Now that you know a little more about gold nuggets, go out and find your own!