How Much Is Scrap Gold Worth?

The melt value formula

Every scrap price starts with one calculation. Take the weight of the item in grams, multiply by the fraction of pure gold it contains, and multiply by today's spot price for one gram of pure (24k) gold. A 10 g ring stamped 585 (14k) contains 10 × 0.585 = 5.85 g of fine gold. If spot gold is $135 per gram, the melt value is 5.85 × 135 ≈ $790.

The purity fraction comes from the karat stamp: 24k = 0.999, 22k = 0.916, 21k = 0.875, 18k = 0.750, 14k = 0.585, 10k = 0.417, 9k = 0.375. These are the legal minimums in most hallmarking systems, so a refiner assaying your lot will find at least that much gold, rarely more.

Spot prices are quoted per troy ounce (31.1035 g). To get the per-gram figure divide the ounce price by 31.1035. Our live tables do this automatically, and the price above this article refreshes every few minutes from MetalflowAPI market data.

Why nobody pays 100 % of melt

A buyer who hands you cash today takes on three costs: refining (separating the gold from copper, silver and zinc), assay risk (the item might be plated or under-karat), and price risk (gold can fall before the lot reaches the refinery). Refining alone costs a small dealer 2–5 % of the gold value, plus shipping and insurance. The rest of the gap is margin.

Volume and certainty push payouts up. A refiner buying 500 g of sorted, tested 18k earns more on the batch than a pawnshop buying a single bent chain, so it can afford to pay 90 % or more. A pawnshop buys small, untested items, often has to hold them, and covers rent and staff from the spread, so 50–70 % is typical.

Payout percentages also vary with karat. High-karat items (22k, 24k) usually get better percentages because there is less alloy to remove and less room for error. 9k and 10k jewellery often gets the lowest share because a meaningful part of the weight is base metal.

Worked examples

Thin 14k chain, 6 g: 6 × 0.585 = 3.51 g fine gold. At $135/g that's a melt value of about $474. A pawnshop at 60 % offers roughly $284; a jeweler at 75 % about $355; a refiner at 88 % about $417.

18k wedding band, 4 g: 4 × 0.750 = 3.0 g fine. Melt ≈ $405. Expect $243 at a pawnshop and up to $356 from a refiner.

Mixed bag of broken jewellery, 40 g, mostly 10k and 14k: sort it first. If it's 25 g of 14k and 15 g of 10k you hold 14.6 + 6.3 = 20.9 g fine gold, a melt value near $2,820. Unsorted, many buyers will price the whole bag as 10k — about $2,250 melt — a loss of more than $500 before their margin is even applied.

These figures use an illustrative $135/g. Use the scrap gold calculator for today's exact number in your currency.

What reduces the value of your scrap

Stones and non-gold parts. Diamonds, gemstones, steel spring clasps and solder inflate the weight on a scale. A careful buyer removes or deducts them; a careless one weighs everything and then discounts the karat. Removing stones yourself (or asking for a stone-out weight) protects you.

Plating and filled items. Stamps such as GP, GF, HGE, RGP, 1/20 12K or 'gold filled' mean only a thin layer of gold sits on brass or silver. Their scrap value is a tiny fraction of solid gold and many buyers refuse them.

Unknown or worn hallmarks. If a stamp is unreadable the buyer will acid-test or XRF-test the item and quote the lowest result. Old European pieces stamped 333 (8k) are legal gold but worth less than 9k.

How to get the best price

Check the live price before you leave home and compute your own melt value. Walking in with a number changes the conversation — you are negotiating the payout percentage, not guessing what gold is worth.

Weigh in grams on your own scale, accurate to 0.01 g. Some buyers quote in pennyweight (1 dwt = 1.555 g) or in 'grams' on a scale set to carats; ask which unit is on the display.

Get three quotes: one pawnshop, one jeweler or local bullion dealer, and one mail-in refiner with published payout rates. Sell to the highest — the difference between offers is often 20 % or more for exactly the same item.

Sell sorted lots separately by karat and keep anything with collector or design value (signed pieces, antique jewellery, coins) out of the scrap pile — they can be worth more than melt.

Taxes when selling scrap gold

In most countries selling personal jewellery at a loss or small gain is not taxed, but rules differ. In the US, gold is a 'collectible' and long-term gains are taxed at up to 28 %. In the UK, personal chattels sold for £6,000 or less are generally exempt from capital gains tax. In India, gains on gold held over 24 months are long-term capital gains. Dealers may be required to record your ID for anti-money-laundering rules. Check your local tax authority for your own situation — this guide is not tax advice.