Scrap Gold Calculator

How to Calculate the Scrap Value of Gold Jewelry?

Weigh the item in grams, identify the karat marking, enter the current spot price, and set the dealer payout percentage in the calculator above. Scrap gold dealers typically pay 70-85% of the theoretical melt value because they incur refining costs, assay fees, and business overhead. The calculator shows both the full spot value and the estimated dealer offer so you can walk into a transaction with realistic expectations and the confidence to negotiate.

Finding the Karat Marking on Your Jewelry

Most gold jewelry is stamped with a karat marking inside the band (rings), on the clasp (necklaces, bracelets), or on the back (pendants, earrings). Look for "10K," "14K," "18K," "22K," or "24K." European pieces may use the millesimal fineness system: 417 (10K), 585 (14K), 750 (18K), 916 (22K), 999 (24K). Some older pieces lack markings entirely. If you cannot find a stamp, a jeweler can acid test or XRF scan the piece to determine purity. Unmarked gold sells at a lower percentage because the buyer assumes additional risk and testing cost.

Why Do Dealers Pay Below Spot Price?

The spot price represents the cost of already-refined, market-grade gold. Your scrap jewelry must be melted, refined back to pure gold, and assayed (tested for exact purity), which costs money and takes time. Refining fees run 1-5% of value. The dealer needs a profit margin (5-15%) to cover rent, staffing, insurance, and business expenses. Transportation and insurance to move gold to the refinery adds cost. A dealer paying 80% of melt value on a $500 piece keeps $100 gross. After refining ($15), shipping/insurance ($5), and overhead allocation ($30), the actual profit is approximately $50 per transaction.

Weighing Your Gold Accurately at Home

Use a digital kitchen scale that measures in grams (accurate to 0.1g is ideal). Remove any non-gold components first: gemstones, glass beads, leather cord, or stainless steel clasps add weight but not gold value. Weigh items by karat group - put all 14K pieces on the scale together, then all 18K separately. An average woman 14K gold ring weighs 2-4 grams. A men 14K wedding band: 4-8 grams. A 14K necklace chain: 5-30 grams depending on thickness and length. A 14K bracelet: 8-20 grams. Knowing the approximate weight before visiting a dealer prevents being underquoted on the scale.

What Types of Items Contain Gold Worth Selling?

Rings (wedding bands, class rings, cocktail rings), necklaces and chains, bracelets, earrings, pendants, brooches, and watch cases. Dental gold (crowns, bridges) is typically 16K equivalent and has meaningful value. Gold-filled items (marked "GF" or "1/20 12K GF") contain a thin layer of gold bonded to base metal - the gold content is minimal (2-5% by weight) and most scrap dealers will not buy them. Gold-plated items ("GP," "HGE," "EP") contain virtually no recoverable gold. If a magnet sticks to any part of the piece (other than the clasp mechanism), it is likely plated, not solid gold.

Getting Multiple Quotes Before Selling

Prices vary dramatically between buyers. A gold chain with $400 in melt value might receive offers ranging from $240 (pawn shop at 60%) to $340 (competitive dealer at 85%). Visit at least three local buyers and get one online quote. Reputable local dealers include independent jewelers, coin shops, and established precious metal businesses. Online options like Kitco and Cash for Gold Mail send you a prepaid shipping kit and make an offer after receiving and testing the items. You can typically reject the online offer and get your gold returned at no charge, making it a low-risk way to establish a baseline price.

Red Flags When Selling Scrap Gold

"We Buy Gold" signs on street corners and pop-up shops in strip malls frequently offer 40-60% of melt value, well below established dealers. Sellers who claim they need to "send it to the lab" before quoting delay the transaction and sometimes lowball after you have already committed psychologically. Any buyer who weighs gold in pennyweights (dwt) instead of grams may be using the unfamiliar unit to obscure the true weight and value. A pennyweight is 1.555 grams - the conversion can confuse sellers into accepting lower offers. Insist on seeing the scale, knowing the weight in grams, and calculating the value yourself before agreeing to any price.

Tax Implications of Selling Gold

Gold is classified as a collectible by the IRS. Profits from selling gold held over one year are taxed at a maximum 28% capital gains rate (higher than the standard 15-20% long-term capital gains rate for stocks). Gold held less than one year is taxed as ordinary income. Your cost basis is the original purchase price. For inherited gold, the basis steps up to fair market value on the date of the decedent death. Many people selling old jewelry have no documentation of the original purchase price, making the entire sale amount potentially taxable. Keeping receipts when buying gold - even jewelry - creates the documentation needed to establish a cost basis and reduce future tax liability.

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