What is Scrap Gold?
Scrap gold refers to any gold items that are sold primarily for their metal content rather than their aesthetic or functional value. This includes broken jewelry, outdated pieces, dental gold, gold coins, and even industrial gold waste. The "melt value" of scrap gold is based purely on the weight and purity of the gold content.
Common sources of scrap gold include:
- Jewelry: Rings, necklaces, bracelets, earrings, and watches
- Dental Gold: Crowns, bridges, and fillings
- Electronics: Computer parts, cell phones, and circuit boards
- Coins: Gold coins that are valued by weight rather than numismatic value
- Industrial Scrap: Manufacturing waste, plating solutions, and gold leaf
When selling scrap gold, buyers typically pay a percentage of the melt value—usually between 70% and 90%—to cover their costs and profit margin. This calculator helps you understand what your gold is worth before you sell, ensuring you get a fair offer.
Understanding Gold Karats
Karat (spelled "carat" for gemstones) is the measure of gold purity. Pure gold is 24 karats, meaning 24 out of 24 parts are gold. Lower karat numbers indicate the gold is mixed with other metals (alloys) to increase durability or alter color.
| Karat | Parts Gold | Purity % | Common Uses |
|---|---|---|---|
| 24K | 24/24 | 99.9% | Investment bars, some Asian jewelry |
| 22K | 22/24 | 91.7% | High-end jewelry, coins |
| 18K | 18/24 | 75.0% | Fine jewelry, watches |
| 14K | 14/24 | 58.3% | Most popular in US jewelry |
| 12K | 12/24 | 50.0% | Vintage jewelry |
| 10K | 10/24 | 41.7% | Affordable jewelry, minimum legal "gold" in US |
| 9K | 9/24 | 37.5% | Common in UK and Australia |
| 8K | 8/24 | 33.3% | Minimum in Germany |
Gold Colors and Alloys
Pure gold (24K) is always yellow. The different colors of gold jewelry—white gold, rose gold, green gold—come from mixing gold with various metals. The karat remains the same (indicating gold content), but the alloys change the appearance.
Yellow Gold
Gold + Silver + Copper
Classic gold color
White Gold
Gold + Palladium/Nickel + Silver
Silvery appearance
Rose Gold
Gold + Copper
Pinkish hue
Green Gold
Gold + Silver
Subtle green tint
For scrap purposes, the color doesn't significantly affect value—it's the gold content (karat) that matters. However, white gold with palladium may have slightly higher value due to the palladium content.
How to Calculate Scrap Gold Value
The formula for calculating scrap gold value is straightforward:
Value = Weight × (Karat ÷ 24) × Gold Price per Unit
Or equivalently:
Value = Weight in Troy Oz × Purity % × Gold Price per Troy Oz
Example Calculation
Let's calculate the value of a 10-gram 18K gold chain when gold is $2,050 per troy ounce:
- Convert weight to troy ounces: 10g ÷ 31.1035 = 0.3215 troy oz
- Calculate purity: 18 ÷ 24 = 0.75 (75%)
- Find pure gold content: 0.3215 × 0.75 = 0.2411 troy oz of pure gold
- Calculate melt value: 0.2411 × $2,050 = $494.26
At 90% of melt value, a buyer might offer: $494.26 × 0.90 = $444.83
Weight Unit Conversions
Gold is traditionally measured in troy ounces, but jewelry scales often use grams. Here are the key conversions:
| Unit | Equals | Troy Ounces |
|---|---|---|
| 1 Troy Ounce (oz t) | 31.1035 grams | 1.0000 |
| 1 Gram (g) | 0.03215 troy oz | 0.0322 |
| 1 Pennyweight (dwt) | 1.5552 grams | 0.0500 |
| 1 Ounce (avoirdupois) | 28.3495 grams | 0.9115 |
| 1 Kilogram (kg) | 1000 grams | 32.1507 |
Tips for Selling Scrap Gold
1. Know Your Gold
Before selling, identify the karat of each piece. Look for stamps like "10K," "14K," "18K," "750" (75% = 18K), "585" (58.5% = 14K), or "375" (37.5% = 9K).
2. Separate by Karat
Sort your gold by karat before visiting buyers. This prevents unscrupulous dealers from weighing everything together and paying based on the lowest karat.
3. Get Multiple Quotes
Visit at least 3-4 buyers to compare offers. Prices can vary significantly between pawn shops, jewelry stores, and dedicated gold buyers.
4. Understand the Market
Check the current gold spot price before selling. Our calculator uses this price to help you understand fair value. Be wary of buyers offering significantly below melt value.
5. Consider Online Buyers
Online gold buyers often pay higher percentages of melt value because of lower overhead. However, factor in shipping and insurance costs.
6. Don't Clean Your Gold
Cleaning can actually damage gold and reduce value. Buyers will clean it themselves using professional methods.
7. Remove Non-Gold Components
If possible, remove stones, clasps, or other non-gold parts before weighing. Otherwise, buyers will deduct estimated weight for these components.
How to Test Gold Purity
If your gold isn't marked with a karat stamp, there are several ways to verify its purity:
Visual Inspection
- Look for wear patterns that might reveal base metal underneath
- Check for discoloration (real gold doesn't tarnish)
- Look for stamps in hidden areas (inside rings, on clasps)
Magnet Test
Gold is not magnetic. If a piece is attracted to a strong magnet, it's either gold-plated or contains significant magnetic alloys. Note: This test isn't definitive, as some non-gold metals are also non-magnetic.
Acid Test
Professional buyers use nitric acid tests. A small scratch is made on an inconspicuous area, and acids of different strengths are applied. Real gold won't react to acid below its karat level.
Electronic Testers
Modern electronic testers use electrical conductivity to estimate gold content. They're non-destructive but should be professionally calibrated.
XRF Analysis
X-ray fluorescence provides the most accurate analysis of gold content without damaging the piece. Professional services offer this testing.
Factors Affecting Gold Prices
Gold prices fluctuate based on various global factors:
Economic Conditions
Gold is often seen as a "safe haven" investment. During economic uncertainty, demand increases and prices rise. During stable growth periods, prices may decline.
Currency Values
Gold is primarily traded in US dollars. When the dollar weakens, gold typically becomes more expensive (and vice versa).
Central Bank Policies
Interest rate decisions and monetary policy significantly impact gold. Lower interest rates often push gold prices higher since the opportunity cost of holding non-yielding gold decreases.
Supply and Demand
Mining output, recycling rates, and jewelry demand (especially from India and China) affect supply and demand dynamics.
Geopolitical Events
Wars, political instability, and international tensions often drive investors toward gold, pushing prices higher.
Frequently Asked Questions
What percentage of melt value should I expect?
Most legitimate buyers pay between 70% and 90% of melt value. Higher percentages are typically offered for larger quantities or by online buyers with lower overhead. Be cautious of anyone offering significantly less than 70% without a clear reason.
Is gold-plated jewelry worth selling?
Gold-plated items have minimal gold content (typically less than 0.05% by weight). The plating is measured in microns and has negligible scrap value. Some specialized refiners accept gold-plated items in bulk, but individual pieces aren't worth selling for gold content.
What about gold-filled jewelry?
Gold-filled items have more gold than plating (required to be at least 5% gold by weight in the US). While not as valuable as solid gold, gold-filled pieces do have recoverable gold content. Typically, buyers pay about 20-30% of what the same weight in solid gold would be worth.
Should I sell coins to a gold buyer or a coin dealer?
It depends on the coin. Common bullion coins (American Eagles, Canadian Maple Leafs) are valued primarily for gold content and can be sold either way. Rare or collectible coins may have numismatic value exceeding their gold content—always get a coin dealer's opinion first.
How often do gold prices change?
Gold prices change continuously during market hours (essentially 24/5 globally). For scrap selling purposes, daily prices are typically sufficient since the difference between opening and closing is usually less than 1-2%.
Can I negotiate with gold buyers?
Yes! Especially with larger amounts. Most buyers have flexibility in their offers. Get competing quotes and don't be afraid to mention better offers you've received elsewhere.