Scrap Gold Calculator

Selling used jewelry or coins is an industry heavily reliant on information asymmetry. The buyer knows exactly how to calculate the chemical melt value, and usually, the seller has no clue. Once you understand the three levers that define value, you have leverage to negotiate.

1. The Correct Measurements (Troy Ounces)

Gold spot prices flashed on television (e.g. "$2,350 per ounce") are NEVER referring to standard grocery store ounces. They refer to Troy Ounces, which are heavier.

• 1 Standard Ounce = 28.349 grams
• 1 Troy Ounce = 31.103 grams
• 1 Pennyweight (dwt) = 1.555 grams

2. Calculating Exact Purity

If you have a 100-gram necklace, you do not have 100 grams of gold unless it is pure 24K bullion. Standard American jewelry is usually 14 Karat. "Karat" is simply a fraction indicating parts out of 24.

3. Spot Price vs Reality

The "Spot Price" shown in our calculator requires you to look up the LIVE commodities market. However, you will never get 100% of the spot price unless you represent a major commercial refinery. If a scrap buyer offers you 75% to 80% of the calculated melt value, that is considered a fair, ethical offer in the secondary market. Offers approaching 50% are predatory.