How is scrap gold value calculated?

Scrap gold value = weight × purity fraction × current spot price per gram. This gives you the melt value. Buyers then pay a percentage of that melt value, typically 80–98% depending on the buyer type.

Who pays the most for scrap gold?

Refineries pay the most (92–98% of melt value) but usually require minimum quantities. Specialist gold dealers pay 85–92%, jewellers 75–88%, and pawn shops 50–75%. Getting multiple quotes is always worth the effort.

Is 22k scrap gold worth more than 18k?

Per gram of scrap, yes. 22k scrap is 91.67% pure and 18k is 75% pure. At $100/g spot: 22k scrap is worth $91.67/g melt value, 18k is worth $75/g. The karat stamp on your piece determines which rate applies.

Scrap gold explainer

Scrap gold value explained

Scrap gold value is the estimated market value of the pure gold content in a piece of jewellery, broken item, or old gold that you intend to sell. It is calculated from weight, purity, and the live spot price — and it is nearly always higher than what a buyer will actually pay. Understanding the gap between melt value and payout is the most practically useful thing to know before approaching any scrap buyer.

The calculation

How to estimate scrap gold value before you walk into a shop

The formula is simple: scrap value = weight in grams × purity fraction × live spot price per gram.

For example: 20 grams of 18k gold (75% pure) with a spot price of approximately USD 102.88 per gram (April 2026 pricing) = 20 × 0.75 × 102.88 = USD 1,543.20 in pure-gold melt value. A typical scrap buyer might offer 80-88% of that figure, which comes to USD 1,234.56-1,357.62. That spread is what pays for testing, refining, smelting costs, and the buyer's margin. The better the refinery and the faster the transaction, the closer to 90% you will get. Slower buyers may offer only 70-75% of melt value.

Weigh the piece in grams using a digital scale accurate to 0.1g. Kitchen scales are not accurate enough.
Identify the karat from the hallmark stamp: 999 = 24k, 916 = 22k, 750 = 18k, 585 = 14k, 417 = 10k.
Look up the live gold price per gram in your local currency (approximately USD 102.88 per gram at April 2026 spot).
Multiply: weight × purity fraction × spot price = melt value. This is your baseline negotiation point.
Expect a payout of 70-92% of melt value depending on the buyer type, location, and market conditions.

Purity levels and their fractions

Karat marks and what they mean for scrap valuation

24k / 999

99.9% pure — the benchmark. Payout fractions are highest for 24k bullion because refining cost is minimal and fraud risk is low.

22k / 916

91.6% pure — common in Indian and Gulf jewellery. Multiply weight by 0.916 to get the pure gold content before applying the spot price.

18k / 750

75% pure — common in European jewellery. Often carries a higher payout percentage than lower karats because it is easier to verify and refine.

14k / 585 and 10k / 417

58.5% and 41.7% pure. Lower gold content means a lower melt value, and payout fractions can be slightly lower because refining cost per gram of gold recovered is higher.

Payout reality

Why scrap buyers rarely pay the full melt value — and what the range looks like

A scrap buyer is not just paying for metal content. They also cover testing costs, refining fees, fraud risk (not all pieces have accurate purity stamps), handling, and their own margin. The typical payout range by buyer type is:

Refineries (direct): 92–98% of melt value — the highest payout, but usually require minimum quantities and involve more process.
Specialist gold dealers: 85–92% of melt value — a practical middle ground for most sellers.
Jewellers buying scrap: 75–88% — depends heavily on the shop and the market.
Pawn shops: 50–75% — typically the lowest payout because the business model is built on wide spreads.

These ranges are approximate and vary by country, market conditions, and individual negotiation. The key point is to calculate your melt value first so that any offer can be evaluated against a real number rather than an impression.

Before you sell

Three things worth checking before approaching a scrap buyer

Collector or antique value: Some pieces are worth more whole than as scrap — especially signed jewellery, vintage pieces, or items with stone settings that have independent value. Do not sell for melt if the piece has collector value.
Accurate weight: Remove all stones and non-gold components before weighing if possible. Some buyers will weigh the full piece and assume a purity that works against you.
Get multiple quotes: The first offer is rarely the best one. Two or three quotes take less than an hour and can move the payout significantly, especially for larger amounts.

Payout ranges by buyer type

Why offers vary so widely depending on where you sell

The biggest surprise to first-time scrap sellers is that different buyers offer radically different payouts for the exact same gold. A refinery might pay 92-98% of melt value, while a pawn shop might pay only 50-70%. This is not necessarily fraud — it reflects different business models. A refinery often buys in large quantities with quick turnaround and direct refining capability. A pawn shop is a small retail business with lower volume, longer hold times, and less refining infrastructure. Both are legitimate, but the payout reflects their costs.

Direct refineries: 92-98% of melt value. Highest payout but usually require minimum quantities (50g+) and involve bureaucratic process. Best for serious sellers.
Specialist bullion/coin dealers: 85-92% of melt value. Professional operators, fair testing, good for most scrap amounts. Mid-range convenience and payout.
Independent jewellery shops: 75-88% of melt value. Highly variable depending on the shop's size and buy frequency. Ask for multiple quotes.
Pawn shops: 50-75% of melt value. Lowest payout, but immediate cash. Often used by sellers who need money urgently. Not recommended unless desperate for cash.

Real-world example

How a 22k Indian gold bracelet is valued and what different buyers pay

Suppose you have an old 22k gold bracelet weighing 15 grams from India (purity: 91.6% / 0.916). At April 2026 spot price of approximately USD 102.88 per gram, the pure gold content is 15 × 0.916 × 102.88 = USD 1,413.32 in melt value. Different buyers might offer:

Specialist dealer (88% payout): USD 1,413.32 × 0.88 = USD 1,243.72. You walk away with this amount.
Jewellery shop (80% payout): USD 1,413.32 × 0.80 = USD 1,130.66. Slower process but familiar touchpoint.
Pawn shop (65% payout): USD 1,413.32 × 0.65 = USD 918.66. Quick cash but significant loss compared to specialist.
The difference: Between specialist dealer and pawn shop, you leave USD 325 on the table — a 26% gap for the exact same gold.

Before you sell: critical checks

Three things that can dramatically change your scrap gold value

Collector or antique value: Some pieces are worth far more whole than as scrap. A signed designer bracelet, a vintage Cartier ring, or a piece with rare gemstones might fetch 3-10x melt value to a collector. Get an appraisal before melting it down. Even a simple Google search on the brand can sometimes reveal significant value beyond the gold content.
Non-gold components affect weight and purity: If your gold contains diamonds, sapphires, or enamel work, some buyers will not weigh those components separately. Always request that stones be removed before weighing, or insist on separate weighing of gold only. Some unscrupulous buyers may deliberately weigh the entire piece to artificially lower the gold content fraction.
Multiple quotes make a huge difference: A single quote from a pawn shop might be 20-30% below the market rate. Getting three quotes from different dealers (a specialist, a jeweller, and a bullion dealer) typically takes one hour and can increase your payout by USD 100-500 on a 20-gram piece. Always shop around.

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