How to Calculate the Scrap Gold Value of Your Jewellery
Two numbers give you the metal floor of any solid gold piece: its weight in grams and its karat. Here is the arithmetic, worked through.
The metal value of a solid gold piece is its weight in grams, multiplied by its karat proportion, multiplied by the current gold price per gram. Everything else is negotiation.
Key takeaways
- Metal value equals grams multiplied by karat proportion multiplied by price per gram.
- You will be offered less than that figure, because refining costs money and buyers take a margin.
- Stones, clasps and any non-gold parts are excluded from the weight that counts.
- The calculation only works for solid gold. Plated and filled pieces have no meaningful recoverable metal.
What Vanhess does and does not do
Vanhess is a jewellery shop in Coquitlam, British Columbia. We sell solid gold jewellery. We do not sell bullion, bars, coins or wafers, we do not buy or broker investments, and we are not financial advisors, tax advisors or a bullion dealer. Everything on this page is general information to help you understand how gold is priced and valued. It is not financial, investment or tax advice. Speak to a licensed advisor or an accountant before making a decision about your money.
Step by step
Step one: weigh it. Gold is priced by mass. Jewellery is normally weighed in grams. If a piece has stones, a buyer will estimate and deduct their weight, because they are not buying the stones as gold.
Step two: find the karat. Look for a stamp inside a ring band, on a clasp, or on a small tag near a chain's fastening. It will read something like 14K, 585, 18K or 750. The three digit numbers are the same information as a decimal: 585 means 58.5 percent, 750 means 75 percent.
Step three: convert the karat to a proportion. Divide the karat number by 24.
| Mark | Also stamped as | Multiply the weight by |
|---|---|---|
| 24K | 999 | 0.999 |
| 22K | 916 | 0.9167 |
| 18K | 750 | 0.750 |
| 14K | 585 | 0.5833 |
| 10K | 417 | 0.4167 |
| 9K | 375 | 0.375 |
Step four: multiply by the current price per gram. Gold is quoted per troy ounce, and one troy ounce is 31.1035 grams. Divide the per ounce price by 31.1035 to get the price per gram. For a live quote, use the LBMA price feed rather than any retailer, including us.
A worked example
Take a 14K gold chain weighing 20 grams, with no stones.
| Step | Working | Result |
|---|---|---|
| Weight | As measured | 20 g |
| Karat proportion | 14 divided by 24 | 0.5833 |
| Pure gold content | 20 multiplied by 0.5833 | 11.67 g of gold |
| Price per gram | Ounce price divided by 31.1035 | Use a live quote |
| Metal value | 11.67 multiplied by the price per gram | The floor for this piece |
Worth knowing
Notice that the chain's design, brand, age and original purchase price appear nowhere in this calculation. A refiner is buying grams of gold.
Why the offer is lower than your number
The figure you calculate is the raw metal value. Anyone buying your gold has to test it, hold it while the price moves, ship it, pay a refiner to process it, and make a margin. So offers land below the calculated value, and how far below varies between buyers.
Be careful
This is exactly why it pays to know your weight and karat before you walk into any shop. A buyer who knows you have not done the arithmetic has no reason to open near their best price. Get more than one offer.
Frequently Asked Questions
How do I calculate the value of my gold jewellery?
Weigh it in grams, find the karat mark, divide the karat by 24 to get the proportion, multiply the weight by that proportion to get the grams of pure gold, then multiply by the current gold price per gram. One troy ounce is 31.1035 grams, so divide a per ounce quote by 31.1035 first.
What does 585 mean on gold jewellery?
It means the alloy is 58.5 percent gold, which is the European style marking for 14K. Similarly 750 means 75 percent, or 18K, and 375 means 37.5 percent, or 9K.
Do stones count toward the gold weight?
No. A buyer paying for scrap gold is buying metal, so the weight of any stones is estimated and deducted. Stones may have their own value, but that is a separate conversation and for most small stones it is close to nothing.
Will I be paid the full calculated value?
No. The calculated figure is the raw metal value. Buyers pay below it to cover testing, refining, price risk and their own margin. The calculation is still worth doing, because it tells you the ceiling and lets you compare offers sensibly.