How to Calculate the Value of Scrap Gold
Scrap gold value is based on three things: how much your item weighs, how pure the gold is, and the current price of gold. The basic formula is:
Item weight × gold purity (%) × current price per unit = melt value
For example, a 10-gram ring that is 18K gold (75% pure) with gold priced at $75 per gram has a melt value of 10 × 0.75 × 75 = $562.50. This is the value of the pure gold content only, before any buyer discount.
Understanding Gold Purity (Karat) and Hallmarks
Gold is rarely used in its pure 24K form for jewellery because it is too soft. It is mixed with other metals like copper, silver, or zinc, which lowers its purity. The karat number tells you how many parts out of 24 are pure gold. Many countries also stamp jewellery with a three-digit hallmark instead of a karat mark.
| Karat | Purity | Common Hallmark |
|---|---|---|
| 24K | 99.9% | 999 |
| 22K | 91.7% | 916 |
| 21K | 87.5% | 875 |
| 18K | 75.0% | 750 |
| 14K | 58.3% | 585 |
| 10K | 41.7% | 417 |
| 9K | 37.5% | 375 |
Where to Find the Karat Stamp
Check the inside of rings, the clasp of necklaces and bracelets, and the back or post of earrings. The stamp is often tiny and may need a loupe or your phone camera zoomed in to read clearly.
What If There Is No Hallmark?
Older, handmade, or foreign pieces sometimes have no visible stamp, or the stamp has worn away. In that case, a jeweler or gold buyer can test the purity using a touchstone, an electronic gold tester, or an XRF (X-ray fluorescence) machine, which is fast, accurate, and does not damage the item.
Gram, Troy Ounce, Pennyweight, or Tola: Which Weight Unit to Use?
- Grams (g) — the most common unit worldwide for jewellery and small items.
- Troy Ounces (oz t) — used for quoting gold market/spot prices; 1 troy ounce = 31.1035 grams.
- Pennyweight (dwt) — traditionally used in the US jewellery trade; 1 dwt = 1.5552 grams.
- Tola — commonly used in South Asia and the Middle East; 1 tola = 11.6638 grams.
If you're not sure which unit your scale or your buyer uses, grams is the safest default since most kitchen and jewellery scales display grams.
Melt Value vs. What a Buyer Actually Pays
Melt value is the theoretical value of the pure gold in your item at the full market price. In practice, gold buyers and refiners pay less than melt value because they need to cover:
- Refining and processing costs
- Testing and assay fees
- Their own profit margin
- Market risk while the gold price fluctuates before resale
Typical scrap gold payouts range from around 70% to 90% of melt value, though this varies widely by buyer and item type. Use the "buyer's offer %" field in the calculator above to see how a real quote compares to full melt value.
Tips Before You Sell Scrap Gold
- Weigh and check the karat of your item yourself first, so you know roughly what to expect.
- Check the current spot price for gold on the day you plan to sell, since it changes daily.
- Get quotes from more than one buyer — pawn shops, jewelers, and online refiners often offer different rates.
- Ask what percentage of melt value is being offered, and whether any testing or shipping fees apply.
- Remove gemstones, clasps, or non-gold parts if possible, since only the gold content is paid for.
- Keep items with historical, designer, or antique value separate — they may be worth more intact than melted down.
Frequently Asked Questions
Does this calculator give me the exact price a buyer will pay?
No. It gives an estimate based on the weight, purity, and price you enter. Actual offers depend on the buyer's own margin, testing method, and local market conditions.
Do gemstones or plating count toward the weight?
No. Only the actual gold content is worth calculating. Weigh your item as accurately as possible, and be aware that gemstones, glue, or filler material can make the true gold weight lower than the item's total weight. Gold-plated items have only a thin layer of gold and are generally worth very little as scrap.
Is a gold coin calculated the same way as jewellery?
The same melt-value formula applies, but many coins have collectible or numismatic value above their gold content. Check with a coin dealer before selling a coin purely as scrap.
Why do gold prices change so often?
Gold is traded on global commodity markets and its price shifts throughout the day based on currency values, interest rates, and investor demand. Always check a current price before using this calculator, rather than relying on an old quote.
What's the difference between "spot price" and what I see at a jewellery store?
Spot price is the current wholesale market price for pure (24K) gold. Retail prices for finished jewellery include labor, design, and markup, which don't apply when you're selling scrap for its gold content alone.