How scrap gold melt value is calculated
Gold jewelry is an alloy. Karat describes how many parts of 24 are pure gold — 14K gold is 14 ÷ 24 = 58.33% gold. To find melt value:
Pure gold (ozt) = weight (g) ÷ 31.1035 × (karat ÷ 24) Melt value = pure gold (ozt) × spot price ($/ozt)
Worked example — 5g of 14K gold
| Step | Calculation | Result |
|---|---|---|
| Gross weight | — | 5.00 g |
| 14K purity | 14 ÷ 24 | 58.33% |
| Pure gold | 5.00 × 0.5833 ÷ 31.1035 | 0.09377 ozt |
| Melt at $4,134.80/ozt | 0.09377 × $4,134.80 | $387.73 |
| At 80% of melt (dealer) | $387.73 × 0.80 | $310.18 |
Karat purity reference
| Karat | Hallmark | Purity | Common use |
|---|---|---|---|
| 24K | 999 or 9999 | 99.99% | Gold bars, bullion coins (e.g., Gold Buffalo) |
| 22K | 917 | 91.67% | US Gold Eagle, Krugerrand |
| 18K | 750 | 75.00% | Fine jewelry, watches |
| 14K | 585 | 58.33% | Most US jewelry |
| 10K | 417 | 41.67% | Budget jewelry; US legal minimum for "gold" |
| 9K | 375 | 37.50% | Common UK, Australian jewelry |
Weight unit conversions for gold
| Unit | Grams | Troy oz | Pennyweight (dwt) |
|---|---|---|---|
| 1 troy oz | 31.1035 g | 1.0000 ozt | 20 dwt |
| 1 pennyweight | 1.5552 g | 0.0500 ozt | 1 dwt |
| 1 gram | 1.0000 g | 0.0322 ozt | 0.6430 dwt |
| 1 avoirdupois oz | 28.3495 g | 0.9115 ozt | 18.23 dwt |
Important: always use troy ounces (or grams converted correctly) for gold. Never use avoirdupois ounces — they are lighter and will understate the result.
What dealers actually pay
Most walk-in gold buyers pay 70–90% of spot melt value. Online refiners and mail-in services vary from 80–95%. Knowing your melt value before you go gives you a baseline — if an offer is below 70% of melt, shop around.