How to Calculate Scrap Gold Value: The Complete Formula and Guide
Most people who search for a scrap gold calculator want one thing. A real number they can trust. Not a guess. Not a lowball offer from a buyer who hopes you never check the math yourself.
This guide breaks down exactly how scrap gold value gets calculated. You will learn the formula buyers use, how to read gold stamps, and how to spot a fair offer from an unfair one. By the end, you will be able to estimate your gold's worth on your own, before you ever walk into a shop.
What Is Scrap Gold?
Scrap gold is any gold item you no longer wear or use in its original form. This includes broken chains, single earrings, old rings, dental gold, and outdated coins. Buyers do not care about the design or sentimental value. They care about the pure gold content inside the item.
This is different from bullion. Bullion is investment grade gold, usually in bars or coins, sold close to full market price. Scrap gold is priced lower because it needs to be melted down and refined before it can be reused.
The Scrap Gold Value Formula
Every gold buyer, refiner, and pawn shop uses some version of the same formula. Once you understand it, no one can talk you into a lower price without you knowing exactly why.
The basic formula is simple:
Weight in grams multiplied by purity percentage multiplied by the current spot price per gram equals your scrap gold value.
Let's break this into four steps so it makes sense with real numbers.
Step 1: Weigh Your Gold
Use a digital scale that measures in grams for the most accurate reading. Jewelers and refiners almost always price gold by the gram, though some still use pennyweight or troy ounces.
Here is a quick reference so you can convert between units:
1 troy ounce equals 31.1 grams
1 pennyweight equals 1.55 grams
1 gram equals 0.032 troy ounces
If your item has stones, clasps, or other non-gold parts, try to separate them first or ask the buyer how they account for that weight. Many buyers estimate stone weight and subtract it before calculating your payout.
Step 2: Determine the Purity
Purity tells you how much of the item is actually gold, and how much is other metal mixed in for strength. Pure gold is soft, so almost all jewelry is an alloy.
Purity is measured in karats, with 24 karat being pure gold. The lower the karat, the less gold content and the lower the value.
Step 3: Check the Current Spot Price
The spot price is the live market price of gold, usually quoted per troy ounce. This price changes constantly during trading hours based on global supply, demand, and investor activity.
Divide the spot price by 31.1 to get the price per gram. This is the number you will plug into your formula.
Step 4: Put the Formula Together
Multiply your gold's weight in grams by its purity percentage. Then multiply that result by the current price per gram. That final number is your item's raw melt value, before any buyer margin is applied.
Here is a full example using a 14 karat gold necklace that weighs 10 grams.
14 karat gold is 58.3 percent pure. If the spot price is 65 dollars per gram, the math looks like this:
10 grams multiplied by 0.583 equals 5.83 grams of pure gold.
5.83 grams multiplied by 65 dollars equals about 379 dollars in raw melt value.
That number is your starting point. Most buyers will offer somewhere below this figure, since they need to cover refining costs and still make a profit.
Gold Karat and Purity Chart
Karat markings can be confusing, especially if your jewelry came from another country. Use this chart to match the stamp on your item to its actual purity. Karat Common Stamp Purity Percentage Where You'll Find It 24K 999 99.9% Pure gold bars, some coins 22K 916 91.6% Middle Eastern and Asian jewelry 18K 750 75.0% High end jewelry, watches 14K 585 58.3% Most common in US jewelry 10K 417 41.7% Budget jewelry, class rings 9K 375 37.5% Common in UK and Australia 8K 333 33.3% German and Italian jewelry
If your item has no visible stamp, it may have worn off over time, or it could be gold plated rather than solid gold. A professional test is the only way to know for sure.
How to Identify Your Gold's Karat at Home
Before you head to a buyer, you can do a few basic checks yourself.
Check the Hallmark
Look closely at the clasp, inside band, or back of the piece. Most legitimate gold jewelry has a small stamp showing the karat or purity number, like 14K or 585.
Try the Magnet Test
Gold is not magnetic. If your item strongly sticks to a magnet, it likely contains a large amount of non-gold metal, or it may not be gold at all. This test is not perfect, since some fakes use non-magnetic metals, but it can quickly rule out obvious costume jewelry.
Consider a Float Test
Drop the item in a glass of water. Real gold is dense and sinks quickly. If it floats or drifts slowly, it may be plated or mixed with lighter metals. Again, this is a rough guide, not a final answer.
Get Professional Testing When It Matters
For anything valuable, ask a jeweler or refiner to run an XRF test. This method uses X-ray fluorescence to read the exact metal composition without damaging your item. It takes seconds and gives you a precise purity reading you can trust.
If you want to double check your own math against a live tool, you can click here to compare your numbers before selling.
What Affects the Price Beyond Weight and Purity
The formula gives you the raw melt value, but your final offer will usually be lower. Here is why.
Spot price changes daily. Gold trades on global markets, so the price you see in the morning may not match the price by afternoon. Always check the current spot price right before you sell.
Buyers apply a margin. Refiners and shops need to cover their costs and make a profit. Most legitimate buyers pay somewhere between 70 and 90 percent of spot value. Anything far below that range is worth questioning.
Refining costs vary. Some buyers melt gold themselves, while others ship it to a third party refiner. Extra steps in that chain often mean a lower payout for you.
Non-gold materials get subtracted. Stones, clasps, and other metals do not count toward your gold weight. A ring with a large stone will weigh less in actual gold than the same ring without one.
Why Gold Prices Change So Often
Gold trades on global exchanges nearly around the clock. Its price moves based on a mix of factors that have nothing to do with your ring or chain, yet they still shape what you get paid.
Central bank policy plays a big role. When interest rates rise or fall, investors shift money between gold and other assets, which pushes the price up or down.
Currency strength matters too. Gold is priced in US dollars worldwide. When the dollar weakens, gold often becomes more expensive, since it takes more dollars to buy the same ounce.
Economic uncertainty tends to push gold prices higher. Investors often treat gold as a safe place to store value during unstable periods, which increases demand and price.
None of this changes your item's weight or purity. But it does mean the same ring could be worth noticeably more or less depending on the week you choose to sell.
Scrap Gold Value vs Jewelry Resale Value
These two numbers are often confused, but they measure completely different things.
Scrap value is based only on the raw gold content, calculated by weight and purity. It ignores craftsmanship, brand, or design.
Resale value, on the other hand, includes the piece's condition, style, and demand as a finished item. A designer ring might sell for far more intact than it would melted down, especially if it is in good condition and still in style.
If you are selling to a gold buyer or refiner, expect scrap value. If you are selling to a jewelry reseller or through a marketplace, resale value may apply instead, and could be higher.
Real Example: Calculating an 18 Karat Gold Ring
Let's walk through a second example so the process feels natural.
Say you have an 18 karat gold ring that weighs 6 grams after removing the stone. Eighteen karat gold is 75 percent pure.
6 grams multiplied by 0.75 equals 4.5 grams of pure gold.
If spot price is currently 65 dollars per gram, multiply 4.5 by 65.
That gives you a raw melt value of about 292 dollars.
Now you know your floor number before speaking with any buyer.
Common Mistakes People Make When Estimating Scrap Gold Value
Even careful sellers slip up. Watch for these common errors.
Forgetting to subtract stone weight. Gemstones and settings add weight but zero gold value. Always account for this before calculating.
Mixing up price per gram and price per ounce. These numbers look similar but are wildly different. Double check which unit a buyer is quoting.
Trusting a single test result. Testing methods can vary in accuracy. If a number seems off, ask for a second test or a second opinion elsewhere.
Ignoring daily price changes. Spot price shifts throughout the day. A quote from yesterday will not match today's market.
Assuming all 14K stamps mean the same purity. International stamps can differ slightly from US standards. Always check the actual percentage, not just the karat number.
How to Get the Best Price for Your Scrap Gold
A few simple habits can protect you from a lowball offer.
Get quotes from at least two or three buyers before committing. Prices and margins vary more than people expect.
Sell when spot price is trending upward if you can wait. Even small price swings add up on larger items.
Know your floor number using the formula above, so you can spot an unfair offer immediately.
Ask buyers directly how they calculate their offer. A trustworthy buyer will explain their math without hesitation.
Frequently Asked Questions
How much is scrap gold worth per gram?
It depends on the current spot price and your item's karat. Multiply the spot price per gram by your item's purity percentage to get an accurate number.
Is 14K or 18K gold worth more?
Eighteen karat gold contains more pure gold, so it is worth more per gram than 14 karat gold, assuming the same weight.
Do scrap gold calculators use live prices?
Reliable calculators pull current spot price data so your estimate matches the real market, not an outdated number.
Can I calculate scrap gold value without a scale?
It is possible using an estimated weight, but accuracy drops significantly. A digital scale gives you the most reliable starting point.
What is the difference between spot price and scrap gold price?
Spot price is the live market rate for pure gold. Scrap gold price is lower, since it accounts for purity, buyer margin, and refining costs.
Conclusion
Scrap gold value comes down to three numbers. Weight, purity, and spot price. Multiply those together and you get your raw melt value, before any buyer margin.
Always check your item's karat stamp and confirm purity before trusting an offer. Compare quotes from multiple buyers and know your floor number ahead of time. Understanding this formula puts you in control of every conversation with a gold buyer, instead of relying on their word alone.