How this calculator works
The melt value of a gold item is the market value of the pure gold inside it. Karat measures the share of gold in an alloy out of 24 parts: 24 karat is fine gold at about 99.9%, 22 karat is about 91.6%, 18 karat is 75%, 14 karat is 58.5% and 10 karat is about 41.7%. The rest is usually silver, copper or zinc, added for strength and colour. To value a piece, multiply its weight by the purity share to get the pure gold content, then multiply by the price of gold per gram. The price is normally quoted per troy ounce, so divide the ounce price by 31.1034768 to get the price per gram. A dealer who buys scrap gold must melt, refine, hold and resell it, so the offer is below the melt value. The difference, or spread, is typically several percent and can be much higher for small quantities or for a walk-in buyer. This calculator applies the spread you enter to estimate the offer. It ignores stones, which have separate value and are usually removed, and any maker or antique premium, which is a collector value rather than a metal value.
Formula
Purity is the fineness of the karat mark, conventionally karat / 24, with 24 karat treated as 99.9% fine rather than a full 100%. Pure gold weight = item weight x purity. Melt value = pure gold weight in grams x price per gram. Dealer offer = melt value x (1 - spread). To convert a price per troy ounce to a price per gram, divide by 31.1034768.
Worked example
An 18 karat ring weighing 10 grams is 75% gold, so it contains 7.5 grams of pure gold. At $100 a gram the melt value is $750. With a 5% dealer spread the estimated offer is $712.50. The same ring in 14 karat contains 5.85 grams of gold and has a melt value of $585.
Advertisement
Frequently asked questions
How do I read the karat mark?
A stamp of 18K or 750 means 18 karat, or 75% gold. A stamp of 14K or 585 means 58.5%. Items marked 24K or 999 are fine gold. An unmarked item should be tested, because plating and filled jewellery can look like solid gold.
Should I sell to a dealer or refine it myself?
Refining is rarely practical for an individual. Comparing offers from several dealers is the simpler approach. A refinery may pay closer to the melt value for large quantities, but it charges a refining fee and may have minimum quantities.
Does jewellery value mean anything?
A piece with a designer name, a rare hallmark or antique craftsmanship can be worth more than its metal. A melt-value calculator ignores that. Have unusual pieces appraised before selling them for scrap.
What about stones in the item?
Diamonds and other stones are usually removed before melting and are not part of the gold weight you should enter. Enter the weight of the metal only, or ask the dealer how stones are handled.
Is selling scrap gold taxable?
It can be. In Canada, the sale of precious metal may be taxable depending on the form and the seller, and in the United States a gain may be taxable. Keep receipts and check the rules where you live. This calculator does not model tax.