Scrap Gold Value: How Jewelry Offers Work

How buyers work out scrap gold value

When you sell gold as scrap, you’re getting an offer based on the value of what can be recovered when the piece is melted down. Buyers look at the weight and purity (karat) of your jewelry, today’s spot price for gold, and the cost of refining. Refining isn’t only about melting, it removes all the non-gold material.

Your item’s gold content is simple math: the weight multiplied by the fraction that’s actually gold. Take 18-karat jewelry, for example: that’s 75 percent gold, so a 10-gram chain contains about 7.5 grams of pure gold. If you want more detail, our guide to gold purity, karats and hallmarks explains karat and fineness.

What can reduce the final offer

You don’t always get paid for the full weight of your item. Extra bits, stones, enamel, plating, solder, add grams but contribute little or no gold. A piece with heavy solder or other metals mixed in can need extra work in refining, leading to a lower offer. If you have small or thin items, some buyers also take a minimum fee, so your payout for a light earring or pendant could be less than the metal's value alone.

Example: how an offer is calculated for a gold chain

Let’s say you bring in an 18-karat chain that weighs 10 grams. The hypothetical spot price for pure gold today is 100 per gram, and the buyer sets the payout at 90 percent of the gold content’s value after refining and their margin are deducted.

Gold content: 10 grams times 75 percent means the piece has 7.5 grams of gold.
Value of the gold content: 7.5 grams times 100 is 750.
Final offer: 90 percent of 750 makes 675.

The actual sum you’re offered changes with the spot price that day and the buyer’s terms.

What causes scrap gold offers to differ between buyers

No two buyers give exactly the same offer. Each calculates its own refining fees, margin, and details around testing. One might quote a fixed percent of the gold content, another gives a per-gram price for pure gold. Some also reduce the quote for stones, solder, or plating, which don’t add to the gold recovered.

The cleanest way to compare offers is to ask exactly how many grams of pure gold they are paying for, not only the cash total. You can check the current gold price per gram using our guide on gold price per gram. Keep in mind the price changes quickly, so your offer moves with it. How you’re taxed depends on where you live, speak to your tax authority or a qualified adviser. If you’re after details on selling coins or bars, see our page how to sell gold bars and coins.

Frequently asked questions

Why is scrap gold offered below its spot value?

The short answer: buyers bid below the raw gold value because they need to melt, refine, and test your jewelry, and to cover the cost and price risk. Most jewelry also contains some material that isn’t gold. That gap is the buyer’s fee for handling and processing, and it changes from one buyer to the next.

Is gold plated jewelry worth anything as scrap?

Usually not much. Gold plated items only have a very fine top layer of gold, so their recoverable gold is minimal, often less than the cost of refining. Gold-filled is better, but still far less valuable than solid gold. Ask your buyer to test first so you know what you’re selling.