Where to Sell Scrap Gold and How to Get a Fair Price

Selling unwanted gold can provide a useful financial opportunity. This guide will walk you through the process of selling scrap gold, which refers to items like broken jewelry, old dental gold, single earrings, damaged pieces, or gold coins and bullion that do not hold collectible value. Understanding the process and factors that affect value can help you navigate the transaction effectively.

Understanding Your Gold’s Value

The value of your scrap gold is primarily determined by three factors: its purity, weight, and the current market price of gold. Gold purity is measured in karats, with 24 karats (24K) representing 99.9% pure gold. Common jewelry items often have lower karat ratings, such as 18K (75% pure), 14K (58.3% pure), or 10K (41.7% pure), indicating they are alloys mixed with other metals for durability. You can find stamps or hallmarks on your gold items, like “14K,” “.585,” “18K,” or “.750,” which denote their karat purity.

The weight of your gold is another important factor, typically measured in grams or troy ounces. One troy ounce is equivalent to 31.1035 grams; some buyers may also use pennyweights (dwt), where one troy ounce equals 20 pennyweights. The current market price, also known as the spot price, fluctuates daily based on global supply and demand and can be monitored on financial news websites. To estimate your gold’s melt value, multiply its weight by its purity percentage (e.g., 0.583 for 14K) and then by the current spot price per unit of pure gold.

Types of Buyers for Scrap Gold

Several types of establishments purchase scrap gold, each with distinct characteristics and potential benefits:
Local jewelers often buy gold, valuing some items for their potential resale as jewelry, not just melt value, and offer the convenience of an in-person transaction.
Pawn shops provide quick cash but typically offer a lower percentage of the gold’s melt value, as their primary business model involves short-term loans rather than direct purchasing for refining.
Online gold buyers offer convenience through mail-in kits and can provide competitive offers, though due diligence is necessary to ensure their reputation. You typically send your gold through an insured shipping service and receive an offer after their evaluation.
Gold refiners or bullion dealers often provide prices closer to the spot price, especially for larger quantities of gold, as they are equipped to directly process the metal.
Coin dealers might be relevant if your scrap gold includes old gold coins, as they can assess for numismatic value beyond the gold’s melt value, which could increase the payout for certain collectible pieces.

Preparing Your Gold for Sale

Before approaching a buyer, taking a few preparatory steps can help streamline the selling process. Sort your gold items, separating them from other metals or non-gold components like gemstones. Look for hallmarks, which are small stamps indicating the gold’s purity (e.g., “10K,” “14K,” “18K,” or corresponding millesimal fineness numbers like “417,” “585,” “750”). A simple magnet test can offer a preliminary indication of authenticity, as pure gold is not magnetic. If an item is strongly attracted to a magnet, it is likely not solid gold.

For cleaning, a soft cloth and mild soapy water can be used for jewelry; avoid harsh chemicals. When you are ready to sell, remember to bring a valid government-issued photo identification, such as a driver’s license or passport, as buyers are legally required to verify your identity for transaction security and to prevent illicit activities.

Steps to Selling Your Scrap Gold

Once your gold is prepared, the selling process typically involves several key steps when dealing with a buyer. You will present your gold items for evaluation, where the buyer will lay them out for inspection. Next, the gold will be weighed, often on a calibrated scale visible to you, to determine its weight in grams or troy ounces. Following weighing, the buyer will perform tests to ascertain the gold’s purity. Common methods include acid tests, which involve applying a small amount of acid to a discreet area, or X-ray fluorescence (XRF) analysis, a non-destructive method that provides an elemental breakdown.

After assessing the weight and purity, the buyer will formulate an offer based on the current market spot price and their operating margins. You have the opportunity to ask questions about how the value was calculated and potentially negotiate the price. Upon agreeing to an offer, payment is typically made via cash or check, and it is important to receive a detailed receipt that includes the weight, karat purity, price per unit, and the total payout.

Tips for a Fair Transaction

To ensure you receive a fair price for your scrap gold, several strategies can empower you during the selling process:
Obtain offers from multiple buyers, as prices can vary significantly between different establishments.
When weighing your gold, observe the process closely and understand the units of measurement being used, such as grams or pennyweights, to confirm accuracy.
Do not hesitate to ask questions about the testing methods, the calculation of the offer, and any potential fees.
Avoid feeling pressured to make an immediate decision; take your time to compare offers and consider your options.
Insist on a detailed receipt that clearly outlines the weight, karat purity, the price per unit, and the total amount you received.
Before visiting a buyer, check the current market spot price of gold from reliable financial sources. Being informed about the prevailing market rate provides a benchmark and helps you assess the fairness of any offer you receive.