How to Calculate What Your Gold Is Worth

The Formula

There is only one formula, and every gold buyer in the world uses it: melt value equals weight in grams multiplied by purity as a decimal multiplied by the spot price per gram. A 10 g piece of 18K gold at a $77 per gram spot price is worth 10 × 0.750 × 77, or about $578 in metal.

Three inputs. That is the entire calculation a dealer performs. Everything else (their offer, the retail price, the insurance value) is derived from this number.

Step 1: Weigh It Accurately

Use a digital jewelry scale that reads to 0.01 g; they cost around $15. Kitchen scales are too coarse for small items.

Remove everything that isn't gold before you weigh, or at least account for it. Gemstones, pearls, enamel, glue, clasps made of a different metal and the steel pins in watch straps all add weight that a buyer will not pay for. Reputable dealers deduct stone weight; less reputable ones quietly weigh it as gold when buying and deduct it when selling.

Note that gold is priced in troy ounces, not the standard avoirdupois ounce of 28.35 g. Mixing them up overstates value by about 10%.

Step 2: Establish the Purity

Convert the karat or hallmark to a decimal:

If there is no hallmark, get the piece tested before you rely on any number. See how to determine your karat. Assuming a karat is the single most expensive mistake people make here.

Step 3: Get the Spot Price Per Gram

Spot price is quoted per troy ounce, defined internationally as exactly 31.1034768 grams. To convert:

Price per gram = Spot price per troy ounce ÷ 31.1035

So a spot price of $2,400/ozt is $77.16 per gram. Gold moves continuously during market hours, so use a live figure: the app tracks current rates across multiple currencies.

Worked Example 1: A 14K Chain

• Weight: 22.4 g
• Purity: 14K = 0.585
• Spot: $2,400/ozt = $77.16/g

22.4 × 0.585 × 77.16 = $1,011 melt value.

A scrap buyer paying 80% of melt would offer around $809. A pawn shop might offer $600–700. A refiner buying in bulk might pay 92–95%.

Worked Example 2: A 22K Bangle in Tola

• Weight: 2 tola = 23.33 g
• Purity: 22K = 0.916
• Spot: $2,400/ozt = $77.16/g

23.33 × 0.916 × 77.16 = $1,649 melt value.

In an Indian or Gulf retail context, you would then add making charges of 8–25% when buying, and lose most of that when selling back.

Worked Example 3: An 18K Ring With Stones

• Gross weight: 6.8 g, of which roughly 0.9 g is a diamond and setting stones
• Net gold weight: 5.9 g
• Purity: 18K = 0.750
• Spot: $2,400/ozt = $77.16/g

5.9 × 0.750 × 77.16 = $341 melt value for the gold.

The diamond is valued separately and may be worth far more than the metal, or, for small melee stones, essentially nothing to a scrap buyer. This is exactly why you should never scrap a stone-set piece without a separate gemstone opinion.

What Buyers Deduct, and Why

• Refining margin (5–15%). Real cost of melting, assaying and re-refining.
• Dealer profit (10–25%). Their business model. Negotiable, especially on larger lots.
• Stone and non-gold weight. Legitimately deducted; ask them to show you the net weight.
• Solder and findings. Clasps and joins are often a lower karat than the body of the piece.
• Testing risk. If a piece is unhallmarked and untested, buyers price down to protect against being wrong.

Melt Value Is Not the Only Value

Three situations where the formula understates what you have:

• Bullion coins. Krugerrands, Sovereigns and Eagles trade at a premium over melt because of recognizability and liquidity. See our coins and bars guide.
• Numismatic and antique pieces. A rare date or a documented provenance can be worth multiples of the metal. Get a specialist opinion before anything goes in a melting pot.
• Designer and branded jewelry. Cartier, Van Cleef and Bulgari pieces sell on the secondary market well above metal value. Selling one for scrap is a costly error.

If any of these might apply, stop and get an appraisal. Melting is irreversible.

Frequently Asked Questions