How to Calculate the Value of Your Scrap Gold in 2026
With gold above $5,000/oz, that broken necklace in your drawer might be worth far more than you think. Here's the exact formula refiners use — with real examples.
March 1, 2026
Gold just shattered records. With the spot price exceeding $5,100 per troy ounce in early 2026 — more than double its price just two years ago — that broken necklace in your jewelry box might be worth far more than you think. Whether you have a single ring or a shoebox full of old chains, understanding exactly how scrap gold value is calculated puts you in control before you walk into any buyer's shop.
The three-variable formula every seller needs to know
Every piece of scrap gold on Earth is valued using the same simple equation:
Scrap Gold Value = Weight (troy oz) × Purity (karat ÷ 24) × Spot Price per troy oz
Three variables. Your item's weight, its gold purity expressed as a fraction of 24, and the current market spot price. The spot price is the real-time global trading price for one troy ounce of pure gold.
One critical note: gold is measured in troy ounces, not regular ounces. One troy ounce equals 31.1035 grams — slightly heavier than a standard ounce (28.35 grams). Confusing the two will throw off your calculation by about 10%.
Understanding karat purity
The karat stamp on your jewelry tells you exactly what fraction is pure gold:
| Karat | Pure Gold % | Value per Gram (at $5,100/oz spot) |
|---|---|---|
| 24K | 99.9% | ~$164.00 |
| 22K | 91.6% | ~$150.25 |
| 18K | 75.0% | ~$123.00 |
| 14K | 58.3% | ~$95.61 |
| 10K | 41.7% | ~$68.39 |
14K gold is the most common karat in American jewelry, meaning most scrap gold sellers are working with metal that's 58.3% pure. Look for small stamps like "585" (14K), "750" (18K), or "417" (10K) on clasps, inner bands, or tags.
A real-world example at today's prices
Say you have a 14K gold bracelet weighing 20 grams and today's spot price is $5,100 per troy ounce.
- Convert grams to troy ounces: 20 ÷ 31.1035 = 0.643 troy oz
- Calculate purity fraction: 14 ÷ 24 = 0.583
- Multiply: 0.643 × 0.583 × $5,100 = $1,911.74 melt value
At 2024 prices (~$2,300/oz), that same bracelet was worth roughly $862. Today's market has more than doubled the melt value of every piece of gold jewelry in the country.
Why you'll never receive 100% of melt value
No buyer pays full melt value. Refining costs, assay fees, business overhead, and profit margins all take a cut. Here's what to realistically expect:
- Professional refineries: 85–95% of melt value
- Reputable online dealers: 75–90% of melt value
- Local jewelry stores and coin dealers: 70–85%
- Pawn shops: 40–60%
A reputable buyer paying 80% on that 14K bracelet would offer roughly $1,529. A pawn shop at 50% would offer $956. That gap — $573 on a single piece — is why calculating your own melt value before selling is essential.
Three tips to maximize your payout
Get a digital scale. A jeweler's scale accurate to 0.1 grams costs under $15 and pays for itself immediately.
Separate by karat. Mixing 10K and 18K pieces gives dishonest buyers an excuse to price everything at the lower karat. Sort by stamp before you sell.
Get multiple quotes. Obtaining at least three offers is the single most effective way to ensure a fair price. Online mail-in refiners often beat local shops by 10–20%.
Sources
- JM Bullion, Gold Price Charts: jmbullion.com/charts/gold-price/
- World Gold Council, Gold Demand Trends Full Year 2025: gold.org
- APMEX, How to Sell Scrap Gold: learn.apmex.com
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