How Much Is Scrap Gold Worth Per Gram?

How Much Is Scrap Gold Worth Per Gram?

Scrap gold refers to any gold item that is no longer desired or usable in its original form but still holds intrinsic value due to its gold content. This includes items like broken jewelry, outdated gold pieces, dental gold, or some gold coins that lack numismatic value. Understanding its composition and market factors is essential for anyone considering a sale.

Understanding Gold Purity and Weight

The purity of gold is measured in karats, a system that divides gold into 24 parts. Pure gold is 24 Karat (24K). When gold is mixed with other metals to create an alloy for durability or color, the karat number indicates the proportion of pure gold present. For instance, 18K gold contains 18 parts pure gold and 6 parts other metals, making it 75% pure. Common purities for jewelry include 10K (41.7% pure), 14K (58.3% pure), and 18K (75% pure).

Another measure of purity is fineness, which expresses the gold content in parts per thousand, often used for investment-grade gold rather than jewelry. For example, 999 fineness indicates 99.9% pure gold, equivalent to 24K. When assessing scrap gold, weight is measured in grams, a metric unit used in the precious metals market. While a standard ounce (avoirdupois ounce) is common for everyday items, precious metals like gold are measured using a troy ounce, which is approximately 31.1035 grams. The global market price for gold is usually quoted per troy ounce.

Factors Influencing Scrap Gold Value

The primary determinant of scrap gold’s value is the current global spot price of gold, the real-time market price for one troy ounce of pure gold. This price fluctuates constantly due to factors like supply and demand, economic indicators, and geopolitical events. Financial news websites and precious metal dealer sites provide live updates on this spot price, usually quoted in U.S. dollars.

When selling scrap gold, buyers do not pay the full spot price. This difference accounts for the buyer’s operational costs, including testing equipment, labor, and the refining process required to extract pure gold from the alloys. Buyers also factor in their profit margins and the risks associated with market fluctuations. A reputable buyer will offer between 60% to 80% of the gold’s melt value, with higher percentages reserved for larger quantities of gold.

Calculating the Value of Your Scrap Gold

To estimate the value of your scrap gold, combine purity, weight, and the current market price. First, identify the karat stamp on each gold item, such as 10K, 14K, or 18K, which indicates its purity. Next, weigh your gold items using a digital scale that measures in grams; for accuracy, separate items by their karat value before weighing.

As of August 29, 2025, the approximate spot price for one gram of pure gold is around $111.00. To calculate the pure gold content in your item, divide its karat value by 24 and multiply by the item’s total weight in grams. For instance, if you have 10 grams of 14K gold, the pure gold content is (14 / 24) 10 grams = 5.83 grams.

Multiply this pure gold content by the current spot price per gram to determine the item’s theoretical melt value. Using the example above, 5.83 grams $111.00/gram equals approximately $647.13. Finally, apply a buyer’s payout percentage, ranging from 60% to 80%, to this melt value to estimate your offer. For example, if a buyer offers 70%, the estimated payout for the 10 grams of 14K gold would be around $452.99.

Selling Your Scrap Gold

Once you have estimated the value of your scrap gold, the next step involves finding a buyer. Common options include local jewelers, pawn shops, online gold buyers, or precious metal refiners. Obtain quotes from several different buyers to ensure you receive a competitive offer for your items.

During the transaction, the buyer will weigh your gold and may perform additional tests to verify its purity. You will be required to present a valid government-issued photo identification, such as a driver’s license. This is a common practice for precious metal transactions across the United States for record-keeping and regulatory compliance.

Payment methods include checks or direct electronic transfers, which offer a secure and traceable record of the transaction. While cash payments might be offered by some, a check or bank transfer is recommended for security and documentation purposes. Always ensure you receive a detailed receipt that outlines the weight, purity, and the price paid for your gold. Any significant gains realized from selling scrap gold, especially if the sale price exceeds your original purchase cost, may be subject to capital gains tax.