Why nobody pays melt value
It is tempting to read a low offer as a rip-off. Sometimes it is. Often it is arithmetic. A buyer who takes your chain has to assay it, ship it, refine it, absorb a small refining loss, wait weeks for settlement, and carry the risk that gold falls while they hold it. That chain has to earn its keep at every step.
The useful question is not "why less than melt" but "how much less, and is that normal for this kind of buyer". The bands below are what the US market typically looks like.
Swipe the table sideways to see every column
| Buyer | Typical payout | Speed | Best for |
|---|---|---|---|
| Pawn shop | 40–60% | Cash today | Small amounts, urgent cash |
| Local jeweler / coin shop | 65–80% | Same day | Most sellers, most of the time |
| Mail-in buyer | 75–85% | 1–2 weeks | Larger lots, patient sellers |
| Refinery direct | 90–98% | 2–6 weeks | Substantial lots above their minimum |
Percentages inside a band vary with quantity. The same shop that pays 55% on a single earring may pay 72% on 200 grams, because their fixed costs stop mattering.
How a scrap transaction should go
- Sort by karat before you leave home. 10K in one pile, 14K in another, 18K in a third. Unsorted gold gets priced at the lowest karat in the pile.
- Weigh each pile and write it down. A 0.01 g jeweler's scale is worth the small cost if you are selling anything substantial.
- Pull anything that should not be melted. Signed pieces, antique work, anything with a stone you would miss.
- Calculate your melt value above, per karat, so you walk in with a number.
- Ask for the rate, not the total. "What are you paying per gram on 14K today?" is the question. A lump sum hides everything.
- Watch the scale. Ask to see the reading and confirm the unit. Grams and pennyweights differ by a factor of more than fifteen.
- Get three quotes. The first offer is rarely the best, and every shop knows you can walk.
Things that quietly cost you money
- Unit switching. A price quoted per pennyweight sounds far larger than the same price per gram. One dwt is 1.555 g.
- Combined weighing. Weighing 18K together with 10K and paying the 10K rate is the oldest trick in the trade.
- Generous stone deductions. Ask how much weight they are deducting and why. One carat is 0.2 grams, not one gram.
- "Testing" that damages the piece. Acid testing marks metal. If a piece might be worth more than scrap, do not let it be filed before you have decided.
- Selling on a spike headline. A record spot price does not mean a shop has repriced its offers that hour. Check the melt figure yourself.
- Shipping uninsured. If a mail-in parcel disappears without insurance, that is the whole loss.
When scrap is the wrong answer
Melting is final. Before anything goes in the pile, check for a maker's mark, an assay office hallmark, an unusual clasp or a period style. Cartier, Tiffany, Van Cleef, mid-century American studio work and Victorian mourning jewelry all routinely sell for multiples of their metal. A twenty-minute visit to an independent appraiser costs far less than discovering this after the fact.
Scrap gold questions
What is scrap gold?
Any gold item being sold for its metal content rather than as jewelry: broken chains, single earrings, worn wedding bands, dental gold, class rings. The buyer intends to melt and refine it, so design, brand and condition are irrelevant — only weight and purity matter.
How much do pawn shops pay for scrap gold?
Commonly 40–60% of melt value. They carry high overhead, offer cash on the spot, and often expect to resell the piece rather than refine it. It is the fastest option and the most expensive one.
Who pays the most for scrap gold?
A refinery, at 90–98% of melt — but they usually impose minimum lot sizes and a treatment fee, which makes them impractical for a few grams. For ordinary quantities, an established mail-in buyer or a local independent jeweler with a refiner relationship is normally the best realistic rate.
Should I sell scrap gold to a mail-in buyer?
They often quote well, but you are shipping metal to a stranger. Photograph and weigh everything before it leaves, insure the parcel for melt value, use a service with tracking, and confirm the buyer returns items free of charge if you reject their offer. Read that return policy before you post.
Do I need to remove gemstones first?
You do not have to, but stones are not paid for and their weight will be deducted — sometimes generously in the buyer's favour. If a stone has real value, have it removed by a jeweler first. If it is a small accent stone, it is usually not worth the labour.
Is dental gold worth anything?
Yes. Crowns and bridges are typically alloyed somewhere between 10K and 18K equivalent, often with palladium or platinum which also has value. Porcelain and any tooth material is deducted. Expect an assay rather than a stamp-based quote, since dental alloys are not hallmarked.
Do I need ID to sell scrap gold?
In most states, yes. Secondhand precious metal dealers are generally required to record your identification, and many states impose a holding period before items can be melted. Bring a government-issued ID and expect to sign something.