How Much Is Scrap Platinum Worth?

Platinum, a rare and valuable precious metal, is integral to many industries and consumer goods due to its unique properties. Its resistance to corrosion, high melting point, and excellent catalytic capabilities make it highly sought after. When items containing platinum reach the end of their useful life, they become a source of “scrap” platinum, which retains significant value. This article explores the various origins of scrap platinum, the factors determining its worth, methods for assessing its value, and the process of selling it.

Sources of Scrap Platinum

Scrap platinum originates from a diverse array of items and industrial processes. Jewelry, such as rings, necklaces, and watch cases, represents a common source, often containing platinum alloys for enhanced durability and luster. These pieces typically maintain a high purity level, making them valuable for recycling.

Beyond personal adornments, industrial applications contribute substantially to the supply of scrap platinum. Catalytic converters in vehicles, particularly diesel models, utilize platinum to reduce harmful emissions. These converters often contain between three and seven grams of platinum per unit.

The chemical and petroleum refining industries employ platinum as a catalyst in processes like nitric acid production, silicone manufacturing, and high-octane gasoline creation. Platinum components are also found in laboratory equipment, including crucibles and electrodes, due to their resistance to high temperatures and chemical corrosion. The electronics sector uses platinum in components such as sensors, contacts, and hard drives.

Platinum’s biocompatibility and electrical conductivity make it suitable for various medical devices. Pacemakers, defibrillators, catheters, and stents frequently incorporate platinum components. Dental fillings and prosthetics, while less common now, historically contained platinum alloys.

Fundamental Value Drivers

The value of scrap platinum is driven by three factors: the global spot price, its purity, and its weight. The global spot price represents the current market value of one troy ounce of platinum for immediate delivery. This price constantly fluctuates based on supply and demand, influenced by economic indicators, geopolitical events, and industrial usage trends.

The purity of platinum material directly impacts its intrinsic value. For jewelry, purity is often expressed in millesimal fineness, such as “950 Plat” indicating 95% pure platinum or “Pt900” for 90% purity. Industrial scrap, like catalysts or labware, has a specific percentage of platinum content.

Weight is the third determinant of value, as precious metals are traded by mass. Platinum is measured in troy ounces or grams. A troy ounce is slightly heavier than a standard avoirdupois ounce, equaling approximately 31.103 grams. Combining the spot price, assessed purity, and precise weight allows for a preliminary calculation of the material’s value.

Accurately Measuring Value

Determining the value of scrap platinum involves accurately assessing both its purity and weight. For platinum jewelry, visual inspection for hallmarks is a primary step. Common hallmarks include “950 Plat,” “PT950,” or “950” within a specific shape, indicating 95% platinum purity. Other marks like “900 Plat” or “850 Plat” denote 90% or 85% purity, respectively.

When hallmarks are absent or unclear, a professional assessment is advisable. Basic at-home acid testing kits can provide a preliminary indication of platinum’s presence, but they involve corrosive chemicals and require strict safety precautions. For more precise purity determination, professionals often use X-ray fluorescence (XRF) scanning, which provides a non-destructive analysis of the elemental composition and an accurate percentage of platinum.

Precise weighing is equally important. Use an accurate digital scale designed for precious metals. These scales often measure in increments of 0.01 grams or better, with capacities suitable for small items up to several hundred or even a thousand grams. Ensure the scale is calibrated and measures in troy ounces or grams for consistency with market pricing. Record the weight to the highest decimal point the scale allows to maximize accuracy.

Navigating the Selling Process

Once you have an estimated value for your scrap platinum, understanding the selling process is the next step. Several types of buyers exist, each with different advantages. Precious metal refiners often offer the best rates for larger quantities or industrial scrap, as they directly process the material to extract pure platinum. Local jewelers might purchase platinum jewelry, providing convenience, while pawn shops offer quick cash but typically at a lower percentage of the market value. Online buyers can provide competitive rates and convenience, though they require shipping the material.

Obtain quotes from multiple buyers to compare offers and account for any deductions. Buyers commonly apply fees for assaying (testing purity), refining costs, and a commission or spread to cover operational expenses and profit margin. These deductions can vary, ranging from 5% to 30% of the calculated precious metal value, depending on the buyer and the material’s form and purity.

When selling, particularly to online buyers, proper documentation and secure shipping are important. Maintain detailed records of the item’s weight and purity, and consider insured shipping options. Selling scrap platinum is considered the sale of a capital asset by the Internal Revenue Service (IRS). Any profit realized from the sale is subject to capital gains tax. Maintaining accurate records of your cost basis (original purchase price plus associated costs) is essential for calculating any taxable gain.