How to Calculate Gold Melt Value
How-To Guides
Learning how to calculate gold melt value puts real power in your hands, because once you know the simple formula you will never have to wonder whether a buyer's offer is fair again. Melt value is the worth of the actual gold in a piece, and it sets the floor for what your jewelry is worth.
What "Melt Value" Actually Means
Melt value is the raw value of the pure gold content in an item, ignoring craftsmanship, brand, or gemstones. It is the price you would get if the piece were melted down to its metal. Solid gold jewelry almost never sells below melt, so this number is your safety net when selling.
The Three Numbers You Need
- Weight in grams (see how to weigh your jewelry at home)
- Purity as a decimal, from the karat stamp (see how to read gold hallmarks)
- Current gold spot price per troy ounce, which you can watch on our live charts or at Kitco
The Melt Value Formula
Here is the whole thing in plain steps:
- Convert the spot price per troy ounce to a price per gram: spot price divided by 31.103.
- Multiply the price per gram by the purity (as a decimal) to get the value of one gram of your gold.
- Multiply that by the weight in grams.
In one line: Melt value = (spot price / 31.103) x purity x weight in grams.
Karat-to-Purity Reference
| Karat | Purity (decimal) |
|---|---|
| 24K | 0.999 |
| 22K | 0.916 |
| 18K | 0.750 |
| 14K | 0.583 |
| 10K | 0.417 |
A Worked Example
Let's say you have a 14K gold chain weighing 20 grams, and gold is trading at $2,400 per troy ounce.
- Price per gram: 2,400 / 31.103 = about $77.16 per gram of pure gold.
- Adjust for purity: 77.16 x 0.583 = about $44.98 per gram of 14K gold.
- Multiply by weight: 44.98 x 20 = about $899.60.
So the melt value of that chain is roughly $900. A scrap buyer will typically offer somewhat less than melt to leave room for their profit and refining costs, so an offer around $720 to $810 (80 to 90 percent of melt) would be reasonable, while anything far below that is a lowball.
Why Your Number Changes Daily
Gold prices move every single trading day, sometimes by a lot. That means the same chain can be worth $880 one week and $930 the next. Always run the math against the current spot price rather than an old quote. Our live charts make it easy to grab today's number before you calculate or sell.
Skip the Math With a Calculator
If arithmetic is not your thing, our scrap gold calculator does every step automatically. Just enter the weight and karat and it pulls the current price for you. To see the whole process applied to a common item, read how much a 14k gold ring is worth.
How BigStash Helps
BigStash.app stores the weight and purity of every gold item you own and recalculates melt value automatically as prices move, so your collection's worth is always up to date without you lifting a calculator.
Frequently Asked Questions
Will I get the full melt value when I sell?
Usually not quite. Buyers pay a percentage of melt (often 80 to 90 percent for scrap) to cover refining and profit. Melt value is your baseline, not the final offer.
Does melt value include gemstones?
No. Melt value is metal only. Diamonds and other stones are valued separately and can add significant worth on top.
Which gold price should I use?
Use the current spot price per troy ounce. Check our live charts or a source like Kitco right before you calculate, since the price changes daily.