What melt value is
Melt value is what the gold in an item is worth as metal, if it were melted down and sold at today’s spot price. It ignores brand, design and condition, which is why it is the number a scrap buyer starts from. It is also the number you should know before anyone makes you an offer.
The formula
Spot price is quoted per troy ounce (31.1035 grams), so a weight in grams must be divided by 31.1035 first. The calculation has three parts:
- Weight. Weigh the piece and subtract anything that is not gold.
- Purity. Turn the karat into a fraction: 14K = 14 ÷ 24 = 0.5833. See the gold karat chart for every karat.
- Price. Use the current spot price. Right now it is $4,072.10 per troy ounce.
Worked example 1: a 14K chain weighing 20 grams
- Pure gold: 20 g × 14 ÷ 24 = 11.667 g
- In troy ounces: 11.667 ÷ 31.1035 = 0.3751 ozt
- Melt value: 0.3751 × $4,072.10 = $1,527.41
Worked example 2: pennyweights
Pawn shops and refiners often weigh in pennyweights (dwt), where 1 dwt is 1.55517 g and 20 dwt make a troy ounce. For 5 dwt of 18K gold:
- Weight in grams: 5 × 1.55517 = 7.776 g
- Pure gold: 7.776 × 18 ÷ 24 = 5.832 g
- Melt value: 5.832 ÷ 31.1035 × $4,072.10 = $763.52
A shortcut: 5 dwt is a quarter of a troy ounce, so 18K melt value is 0.25 × 0.75 × spot. The pennyweight calculator does these conversions for you.
Worked example 3: a ring with a stone
A 14K ring weighs 12 g in total and holds a 2 carat stone. Two carats is 0.4 g (0.2 g per carat), so the gold weight is 11.6 g.
- Pure gold: 11.6 × 14 ÷ 24 = 6.767 g
- Melt value: $885.90
- If you forgot the stone and used 12 g, you would get $916.45, an overstatement of $30.55.
Stone weight is usually estimated, so treat the result as a close figure and not an exact one. The gold calculator has a stone and non-gold weight deduction under More options.
The mistakes that cost sellers money
- Mixing up the ounces. A household ounce is 28.35 g and a troy ounce is 31.10 g. Weigh a 1 oz piece of 14K gold on a kitchen scale and multiply by spot as if it were troy ounces, and you get $2,375.39. The true melt value is $2,165.07. Weigh in grams to avoid this.
- Using the 24K price for everything. Spot is the price of pure gold. A 14K piece is worth 58.33% of it.
- Including the stones. Gemstones, clasp springs and watch movements have no melt value.
- Trusting a stamp on plated pieces. GP, GF and HGE marks mean a thin layer of gold over base metal. See is my gold real?
- Treating melt value as the offer. It is the starting point, not the price you will be paid.
From melt value to a real offer
Buyers pay a percentage of melt value. These are illustrative ranges, not quotes, applied to the 20 g 14K chain in example 1 ($1,527.41 melt value):
| Buyer | Typical payout | On this chain |
|---|---|---|
| Pawn shop | 40–60% | $611–$916 |
| Local jeweler or coin shop | 65–80% | $993–$1,222 |
| Mail-in or online buyer | 75–85% | $1,146–$1,298 |
| Refinery | 90–98% | $1,375–$1,497 |
Get at least two or three quotes, and ask each buyer for their payout as a percentage of spot so you can compare like with like. How to sell scrap gold explains the process.
Before you sell: a checklist
- Weigh each piece in grams on a scale accurate to 0.01 g.
- Read the karat or fineness stamp. Set aside anything marked GP, GF or HGE.
- Estimate and subtract the weight of stones and non-gold parts.
- Work out the melt value with the gold calculator or the karat calculators: 10K, 14K, 18K, 22K, 24K.
- Collect quotes and compare them as a percentage of that melt value.
Frequently asked questions
How do you calculate the melt value of gold?
Multiply the weight in troy ounces by the purity (karat ÷ 24) and by the spot price per troy ounce. If you weigh in grams, divide by 31.1035 to get troy ounces first. Deduct the weight of any stones or non-gold parts before you start.
Is melt value what I will be paid?
No. Melt value is what the metal is worth. Buyers pay a percentage of it to cover refining, testing and risk: typically 40–60% at pawn shops, 65–80% at jewelers and coin shops, 75–85% from mail-in buyers and 90–98% from refineries, before fees.
Should I use the spot price or a dealer price?
Use the spot price to value your metal, then compare buyers by the percentage of spot they offer. Dealer buy prices already include the dealer's margin, so using one in the formula double-counts it.
Do I include the weight of stones?
No. Gemstones, pearls, watch movements and non-gold parts have no melt value, and a refiner will not pay for them. Subtract their weight first. One carat of stone weighs 0.2 grams.
Why is my result 10% too high?
You probably used standard ounces (28.35 g) as if they were troy ounces (31.10 g). Gold is priced per troy ounce, and the difference is about 9.7%. Weigh in grams to avoid the mistake.
Does colour or style change melt value?
No. Melt value depends only on the weight of gold in the piece, which comes from its total weight and karat. Brand, craftsmanship or design can add resale value above melt, but a scrap buyer prices the metal.