Scrap gold value is based on pure gold content, not gross jewelry weight. Multiply weight by purity, apply live 24K price, then adjust by buyer payout.
scrap value = weight × purity × 24K price per gram × payout %
Why scrap sells below spot
Buyers pay below spot because they must verify karat, remove non-gold parts, refine metal, cover margin, and absorb market risk. Typical ranges are often 70%–90% of pure-gold value.
Step-by-step
- Sort items by karat (417/585/750/916/999).
- Weigh each karat group separately.
- Calculate pure content:
weight × purity. - Apply live 24K price per gram.
- Apply buyer payout percentage.
Worked scenarios
| Item | Karat | Weight | Payout | Method |
|---|---|---|---|---|
| Broken chain | 14K | 8 g | 80% | 8 × 0.585 × spot × 0.80 |
| Ring | 18K | 4 g | 85% | 4 × 0.750 × spot × 0.85 |
| Mixed lot | 10K–14K | 25 g | 75% | Calculate each karat separately |
Payout comparison table (same item, different offers)
Suppose pure-metal value is $500 after weight and purity adjustment.
| Payout | Offer | Interpretation |
|---|---|---|
| 70% | $350 | Conservative offer, often high-margin retail buyer |
| 80% | $400 | Typical local scrap benchmark |
| 90% | $450 | Strong offer, often better assay confidence or competition |
| 95%+ | $475+ | Usually scale/refinery-style terms, not common small-lot walk-in pricing |
How pawn shops calculate value
Most buyers inspect hallmark, test purity, weigh, compute pure-gold content, then offer a payout below spot. Offer quality also depends on whether the piece is sold as jewelry or melted as scrap.
Common mistakes sellers make
- Accepting a blended offer for mixed-karat lots without separate weights.
- Not confirming whether quote is based on gross or net gold-bearing weight.
- Comparing offers at different timestamps in volatile sessions.
- Ignoring hidden deductions (testing fee, handling fee, settlement spread).
- Not asking for explicit payout % anchored to spot reference.
Before you sell
Sort by karat, weigh yourself, remove obvious non-gold parts, compare at least two offers, ask for payout %, and model 70/80/90% in Goldworth before deciding.
When to use scrap calculator vs melt calculator
Use the scrap calculator when you want a realistic buyer-facing estimate with payout discounts. Use the melt calculator when you want intrinsic metal value at 100% baseline.
FAQ
What is a fair payout for scrap gold?
Many real-world retail offers fall in the 70–90% range, but fair depends on assay confidence, lot size, and market competition.
Should I calculate mixed karats together?
No. Calculate each karat group separately, then sum totals.
Do pawn shops use the same formula?
Yes, broadly: purity-adjusted metal value with a payout discount and business spread.
Can old or broken jewelry still have value?
Yes. Condition matters less for scrap than pure metal content, unless item is resellable as jewelry.