How to Calculate Scrap Gold Value — Step by Step
Got a drawer full of old gold jewellery and wondering what it’s worth? Whether it’s a broken chain, an old engagement ring, or mixed karat scrap from an estate, calculating its value is straightforward once you understand the three key variables: weight, karat purity, and the current spot price.
The Scrap Gold Formula
The metal value of any piece of gold can be calculated with this formula:
Where the purity factor is:
For example, 14K gold has a purity factor of 14 ÷ 24 = 0.5833
Step-by-Step Walkthrough
Find the karat of your gold
Look for a hallmark stamp on the piece — inside the ring band, on the clasp, or on the post of an earring. Common stamps are 9K, 10K, 14K, 18K, 22K, 24K, or European millesimal marks like 375 (9K), 585 (14K), 750 (18K).
Weigh the gold accurately
Use a digital jewellery scale accurate to 0.01 grams. Weigh each karat separately if you have mixed pieces. Remove any non-gold components (clasps, stones) where possible — dealers weigh only the metal.
Get the current gold spot price per gram
The spot price is quoted in troy ounces. To convert to per gram, divide by 31.1035. Use our live calculator which does this automatically and updates every 60 seconds.
Apply the formula
Multiply: Weight × Purity Factor × Spot Price per gram = your gold’s melt value.
Apply a dealer percentage
Scrap gold dealers typically pay 70–90% of melt value. Multiply your melt value by 0.75 to 0.85 to estimate a realistic dealer offer.
Worked Example
Let’s say you have a 14K gold ring weighing 4.5 grams, and the current gold spot price is $3,300 per troy oz ($106.09 per gram).
Spot per gram = $3,300 ÷ 31.1035 = $106.09
Melt Value = 4.5g × 0.5833 × $106.09 = $278.25
Realistic dealer offer (80%) = ~$222.60
Tip: Always get at least 3 quotes from different scrap gold dealers before selling. Offers vary widely. Online gold buyers often pay more than high street jewellers.
Purity Factor Reference Table
| Karat | Hallmark | Purity Factor |
|---|---|---|
| 24K | 999 / 24K | 0.9999 |
| 22K | 916 / 22K | 0.9167 |
| 18K | 750 / 18K | 0.7500 |
| 14K | 585 / 14K | 0.5833 |
| 10K | 417 / 10K | 0.4167 |
| 9K | 375 / 9K | 0.3750 |
What Affects the Dealer Offer?
Several factors influence how much a scrap dealer will pay relative to spot:
- Volume: Larger quantities command better rates (closer to 90% of spot)
- Karat: Higher karat gold is easier to refine and may attract a better rate
- Condition: Clean gold is worth the same as dirty gold — dealers test purity regardless
- Stones: Diamonds and gemstones are typically removed and not included in the gold price; negotiate their value separately
- Dealer type: Online refiners usually offer 85–95% of spot; high street jewellers typically offer 60–75%
Using Our Scrap Gold Calculator
Our free scrap gold calculator lets you enter weights for multiple karats simultaneously and calculates the total melt value instantly at the live spot price. No manual maths required.
Try the Scrap Gold Calculator
Enter your gold weights by karat and get the live melt value instantly.
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