How is the scrap value of gold calculated?

Scrap gold melt value is calculated using three variables: gross weight, karat purity, and current gold spot price. First, the karat is converted into a decimal purity fraction (for example, 14K is 14 ÷ 24 = 0.5833). Multiplying the gross weight in grams by 0.5833 gives the pure 24K gold content. This pure gold weight is divided by 31.1035 (the grams in a troy ounce) and multiplied by the current market gold spot price per troy ounce.

Why do gold buyers pay less than 100% of the spot price?

Nobody can buy scrap gold at 100% of spot price and stay in business. When you sell scrap jewelry, the buyer must send it to an industrial refinery to be melted down, chemically assayed, and re-refined into 99.99% pure bullion bars or coins. Refineries incur melt loss, chemical acid costs, and insurance overhead. Reputable jewelers and gold refiners typically pay 80% to 92% of spot value, while pawnshops and mall kiosks often offer only 50% to 70%.

What is the difference between a Troy Ounce and a regular ounce for gold?

Precious metals are strictly measured in Troy Ounces (ozt), not standard avoirdupois ounces (oz). One Troy Ounce equals 31.1035 grams, whereas a standard grocery ounce equals only 28.3495 grams. A Troy Ounce is approximately 9.7% heavier. Always verify that a gold buyer calculates your payout using 31.1035 grams per ounce; using 28.35 grams is a common under-weighing trick.

What do the hallmarks 417, 585, and 750 mean on gold jewelry?

These three-digit numbers represent the European millesimal fineness (parts of pure gold per thousand). '417' means 41.7% pure gold (10 Karat). '585' means 58.5% pure gold (14 Karat). '750' means 75.0% pure gold (18 Karat). '916' means 91.6% pure gold (22 Karat), and '999' means 99.9% pure gold (24 Karat pure investment bullion).

Should I remove gemstones before selling scrap gold?

Yes. Gold buyers pay strictly for the metal weight of pure gold. Gemstones, diamonds, pearls, and cubic zirconias do not count toward gold weight. In fact, scrap dealers will estimate and deduct the weight of the stones (often overestimating to protect themselves). If the stones are valuable diamonds or precious gems, have a certified jeweler remove and appraise them separately before selling the gold setting for scrap.

Is gold filled (GF) or gold plated (GP) worth selling as scrap?

Most local jewelers and pawnshops do not buy gold plated jewelry (stamped GP, GEP, HGE, or RGP) because the gold layer is only a few microns thick and has virtually zero recoverable value. Gold filled jewelry (stamped 1/10 12K GF or 1/20 14K GF) contains a thicker bonded mechanical layer (5% to 10% gold by total weight). While valuable in large industrial lots (several pounds), single gold-filled pieces yield very little at local scrap counters.

What is a pennyweight (dwt) in gold measurement?

A pennyweight (abbreviated 'dwt') is a traditional unit of mass in the Troy weights system. Exactly 20 pennyweights make up one Troy Ounce, which means 1 pennyweight equals exactly 1.55517 grams. Many North American jewelers and dental scrap buyers still quote buy rates in pennyweights rather than grams.

How can I tell if my jewelry is real gold before using this calculator?

Start with a strong neodymium magnet: real gold is non-ferrous and will never stick to a magnet (if it jumps to the magnet, it is gold-plated steel or iron). Next, inspect clasps and inner bands under a magnifying loupe for official karat hallmarks (10K, 14K, 18K, 417, 585, 750). Finally, test un-hallmarked items using an acid scratch test kit, an electronic gold tester, or ask a reputable jeweler to scan it with an XRF spectrometer.

Precious Metals • Live Market Benchmark Valuation

Scrap Gold Calculator

Calculate exact scrap gold melt value by karat purity (10K, 14K, 18K, 22K, 24K) and weight in grams, pennyweights (dwt), or troy ounces. Estimate realistic cash payouts and dealer margins before selling your jewelry.

Live Benchmark Gold Spot Price:

Spot/ozt:

Pure 24K: $101.27/g

Scrap Gold Item Details

Karat & Weight

Gold Karat / Purity

Weight of Scrap Gold

*Weigh gold without gemstones, pearls, or non-gold clasps.

Buyer Cash Payout Percentage80% of Spot

Dealers deduct 10% to 50% to cover melting loss, refining assays, overhead, and profit.

Estimated Cash in Hand (80% Payout)Spot: $3,150 CAD/ozt

$732.55CAD

100% Melt Value: $915.69Dealer Cut (20%): -$183.14

Gross Weight15.5 g

Pure 24K Gold9.04 g

Purity Average58.3%

Pure Gold in Ounces

0.291 ozt

5.8 pennyweights (dwt)

14K Value Per Gram

$59.08

100% melt value per gram of 14K

18K Value Per Gram

$75.96

100% melt value per gram of 18K

Gold Scrap Value by Karat (Spot: $3,150 CAD)100% Melt / Gram

24K Gold(99.9% • 999)

$101.17 / gCash ($80%): $80.94/g • $157.34/dwt

22K Gold(91.7% • 916)

$92.84 / gCash ($80%): $74.27/g • $144.38/dwt

21K Gold(87.5% • 875)

$88.62 / gCash ($80%): $70.89/g • $137.81/dwt

18K Gold(75% • 750)

$75.96 / gCash ($80%): $60.76/g • $118.13/dwt

14K Gold(58.3% • 585)

$59.08 / gCash ($80%): $47.26/g • $91.88/dwt

12K Gold(50% • 500)

$50.64 / gCash ($80%): $40.51/g • $78.75/dwt

10K Gold(41.7% • 417)

$42.20 / gCash ($80%): $33.76/g • $65.63/dwt

9K Gold(37.5% • 375)

$37.98 / gCash ($80%): $30.38/g • $59.06/dwt

Consumer Gold Selling Tips

Always separate your gold jewelry by karat before visiting a buyer. High-karat pieces (18K, 22K) should never be weighed in the same batch as 10K. Reputable jewelers and online bullion refiners typically offer 75% to 90% of spot, while mall kiosks and pawnshops often start at 50% to 65%.

How Scrap Gold Value is Determined: The Exact Melt Formula

Whether you have broken chains, outdated wedding bands, single earrings, dental crowns, or estate jewelry sitting in a drawer, every piece of gold has a verifiable intrinsic cash value. This value is known in the jewelry and precious metals industry as the Melt Value.

Unlike retail jewelry—where retail markups for branding, design, craftsmanship, and retailer profits can inflate the price by 300% to 800%—scrap gold is valued purely by its weight in pure 24-karat fine gold. A battered, tangled 14K necklace has the exact same melt value as a pristine, brand-new 14K designer necklace of the identical weight.

Gold Karat Purity & Hallmark Identification Guide

Pure 24K gold is too soft for everyday jewelry, so it is alloyed with durable metals like copper, silver, zinc, and nickel. The karat rating tells you exactly what proportion of the piece is pure gold:

Karat Rating	Gold Purity (%)	Millesimal Hallmark	Common Uses & Origin
24K	99.9% – 100%	999, 999.9, Fine Gold	Investment bullion bars, Maple Leaf coins, Asian bridal jewelry
22K	91.7% (22/24)	916, 917, Crown Gold	Traditional Indian, Middle Eastern, and Southeast Asian jewelry
21K	87.5% (21/24)	875	Widely standard across the Arabian Gulf, Egypt, and Mediterranean
18K	75.0% (18/24)	750, 18kt, 18k	Luxury European fine jewelry, Rolex watches, high-end diamond settings
14K	58.3% (14/24)	585, 14kt, 14k	The most popular jewelry standard in Canada and the United States (approx. 70% of market)
10K	41.7% (10/24)	417, 10kt, 10k	Minimum legal gold standard in the US. Common for class rings, durable chains
9K	37.5% (9/24)	375, 9ct	Standard in the United Kingdom, Australia, and New Zealand

Understanding Buyer Payouts: Who Pays What?

When you take scrap gold to a dealer, they will calculate the 100% melt value and then quote you an offer based on their payout percentage. Below is what you can expect from different categories of buyers:

90% – 95% of Spot

Direct Bullion Refiners

The highest payout available. Usually requires minimum lot sizes (100+ grams) or commercial accounts for jewellers and pawnbrokers.

80% – 90% of Spot

Reputable Online Buyers

Licensed precious metal dealers with insured mail-in kits. High volume and lower overhead allow them to pay top consumer rates.

70% – 80% of Spot

Local Jewelry Stores

Convenient and safe with immediate cash or store credit (often offering 10% to 20% bonus if you take store credit).

50% – 65% of Spot

Pawnshops & Mall Kiosks

The lowest payouts. Mall “Cash for Gold” pop-ups rely on convenience and impulse sellers, pocketing massive 40% to 50% profit margins.

4 Common Traps to Avoid When Selling Scrap Gold

1. The Troy Ounce vs. Regular Ounce Scam

Unscrupulous buyers might weigh your jewelry in grams (e.g. 50 grams) and divide by 28.35 (standard ounce) instead of 31.1035 (troy ounce). This cheats you out of nearly 10% of your total gold value before calculations even start.

2. Mixing Karats into One Scale Batch

Never allow a buyer to weigh your 18K and 22K jewelry together with 10K pieces. If they weigh everything together, they will pay you based on the lowest karat in the pile. Always sort your gold by karat before walking into a store.

3. Not Deducting Non-Gold Weight

Watch clasp springs, steel pins in brooches, and internal resin in hollow gold bangles do not count as gold. Be aware that the buyer will subtract this weight. Test all clasps with a magnet.

4. Accepting the First Offer Without Negotiating

Most gold buyers quote an intentionally low first offer (often 55% to 65% of spot). If you show that you know the exact weight and today's spot price using this calculator, they will almost always increase their offer to 80% or 85%.

Real-World Scrap Gold Case Studies

Case Study 114K Broken Chain

15.5g 14K Gold Chain

At a spot price of $3,150 CAD/ozt, pure gold is $101.27/g. A 15.5g 14K chain contains 9.04g of pure gold ($915.65 melt value). A reputable buyer paying 82% offers $750.80 cash.

Case Study 218K Wedding Band

8.2g 18K Gold Band

18K is 75% pure gold, meaning 8.2g contains 6.15g of fine gold ($622.80 melt value). Selling to an online bullion dealer paying 88% delivers $548.00 cash.

Case Study 3Estate Lot (3 Items)

Mixed Karat Jewelry Box

Combining a 10K ring (14.8g), 14K bracelet (12.5g), and 18K pendant (6.2g) gives 33.5g total weight with 18.1g pure gold ($1,833 melt value). At 80% payout, the seller pockets $1,466.40.

Frequently Asked Questions About Scrap Gold

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Precious Metals Valuation Disclaimer

This Scrap Gold Calculator provides estimated intrinsic melt values and typical buyer cash payout ranges based on user-entered weights, karats, and market spot prices. Actual payouts offered by buyers will vary depending on physical assay testing, refining charges, local dealer margins, sales taxes, and commodity market fluctuations throughout the trading day. CalcVault does not purchase precious metals or guarantee transactions with third-party buyers.