How to calculate gold value
melt value = weight (troy oz) × karat purity × spot price
Example: 14K ring weighing 5 grams (gold at $2,350/oz)
- Convert weight: 5g ÷ 31.1035 = 0.1608 troy oz
- Apply karat purity: 0.1608 × 0.583 (14K = 58.3% gold) = 0.0937 troy oz pure gold
- Multiply by spot price: 0.0937 × $2,350 = $220.20 melt value
- Dealer offer (~70%): ~$154
Gold karat chart
| Karat | Purity | Stamp | Typical use |
|---|---|---|---|
| 24K | 99.9% | 999 | Pure gold. Too soft for most jewelry; used in bullion, coins, some wedding bands in Asia. |
| 22K | 91.7% | 916 | Common for gold bullion coins (Krugerrand, Sovereign) and traditional Indian/Middle Eastern jewelry. |
| 18K | 75.0% | 750 | High-end jewelry. Durable and resistant to tarnish; popular for engagement rings and luxury watches. |
| 14K | 58.3% | 585 | Most common US jewelry standard. Good balance of gold content and durability. |
| 10K | 41.7% | 417 | Minimum karat legally marketable as 'gold' in the US. Very durable but less intrinsic value. |
Silver purity chart
| Grade | Purity | Typical use |
|---|---|---|
| .999 Fine silver | 99.9% | Pure silver bullion, coins, investment bars. |
| Sterling .925 | 92.5% | Standard for silver jewelry and flatware. Stamped 'STERLING' or '925'. |
| Coin silver .900 | 90.0% | Pre-1965 US silver coins. Stamped '900' or labeled 'coin silver'. |
| Britannia .958 | 95.8% | UK high-grade silver, used in Britannia coins and some flatware. |
| European .800 | 80.0% | Continental European silver from 19th–early 20th century. Marked '800'. |
What affects the gold price
- Inflation — gold is a classic inflation hedge. When the dollar weakens or inflation expectations rise, gold tends to rally.
- Interest rates — gold has no yield, so high real rates make bonds more attractive. Falling rates usually boost gold.
- US dollar strength — gold is priced in USD. A weaker dollar makes gold cheaper for foreign buyers, boosting demand.
- Geopolitical risk — wars, financial crises, and political instability drive safe-haven buying.
- Central bank activity — central banks (China, Russia, India) buying gold to diversify reserves puts upward pressure on prices.
- Mining supply — relatively slow-moving; annual global mine production changes by 1–2% and doesn't dominate price action.
Scrap gold selling tips
- Get multiple quotes — visit at least 3 buyers. Offers often vary by 30–50% for the same item.
- Know the karat and weight — weigh pieces at home on a gram scale, identify stamps. Arrive informed.
- Separate by karat — don't let a buyer lump 18K with 10K and pay the 10K rate for everything.
- Remove stones — gemstones don't count toward gold value. Keep them separate unless selling mounted jewelry.
- Avoid mail-in services — TV/internet "cash for gold" companies often pay 30–50% of melt. Always worse than local.
- Check today's spot price — verify the buyer is using a current price, not an old one.
- Consider a refiner — for more than 10 ounces of scrap, direct-to-refiner (Midwest Refineries, etc.) pays the most but requires shipping and 1–2 week wait.
Gold hallmark stamps explained
Hallmarks are tiny stamps inside rings, on chain clasps, or on the backs of earrings indicating purity:
999 = 24K (99.9% pure)
916 = 22K (91.6% pure)
750 = 18K (75.0% pure)
585 = 14K (58.5% pure)
417 = 10K (41.7% pure)
375 = 9K (37.5% pure, UK)
Watch for plated items: "GE", "HGE" = gold electroplate (negligible gold). "GF" = gold filled (5% or 10% gold by weight, worth some value). "Vermeil" = sterling silver base with gold plating.
Frequently asked questions
How do I calculate the value of my gold?
Convert the weight to troy ounces, multiply by the karat purity percentage, then multiply by the current gold spot price. Formula: value = (weight in troy oz) × (karat purity as decimal) × (spot price per troy oz). Example: a 5-gram 14K ring = 5 × 0.583 × (1/31.1035) × $2,350 = $220 in pure gold content. Scrap buyers typically offer 60–90% of this melt value. Use our gold calculator to run the math instantly.
What is the difference between 14K and 18K gold?
Both describe the purity of gold in an alloy. 24K is pure gold (99.9%); other karats mix in metals like copper, silver, or nickel for durability. 14K is 58.3% gold, 41.7% other metals. 18K is 75% gold, 25% other metals. 18K has more intrinsic gold value and richer color but is softer (scratches easier). 14K is harder, more durable for daily wear, and about 60% of the value of equivalent weight 18K.
How much is scrap gold worth?
Scrap gold is worth roughly 60–90% of its melt value, depending on the buyer. Melt value = weight × purity × spot price. A 10-gram 14K piece at $2,350/oz gold = ~$440 melt. A scrap dealer might offer $300–$400 (60–90%). Pawn shops pay the least (40–60%); refiners pay the most (85–95%); local jewelers are in between. Always get 2–3 quotes before selling.
What is a troy ounce vs regular ounce?
A troy ounce is the standard for precious metals: 1 troy oz = 31.1035 grams. A regular (avoirdupois) ounce is smaller: 1 oz = 28.3495 grams. A troy ounce is about 10% heavier than a regular ounce. Gold and silver are ALWAYS quoted in troy ounces — when you hear 'gold is $2,350/oz', that's per troy ounce. Don't confuse the two when weighing jewelry.
Where can I find the current gold spot price?
Real-time spot prices are available at kitco.com, apmex.com, goldprice.org, or your financial news app (CNBC, Bloomberg). Prices fluctuate continuously during market hours (Sun 6PM ET – Fri 5PM ET). Our calculator lets you enter today's spot price manually — check before selling to ensure you're using a current number. Spot prices are in USD per troy ounce by convention.
How much do gold buyers typically pay?
It varies by buyer type: pawn shops pay 40–60% of melt value (most profit taken); jewelry stores 50–75%; 'cash for gold' stores 55–75%; online buyers like APMEX or JM Bullion 85–95% for quantities over a few ounces; direct-to-refiner 90–98% but usually requires 10+ ounces. For small quantities (under 1 oz), a local jeweler or reputable precious metals dealer offers the best combination of convenience and payout.
What does 585 stamped on gold mean?
585 is the European-style hallmark for 14K gold (58.5% pure gold). Other common stamps: 375 = 9K, 417 = 10K, 585 = 14K, 750 = 18K, 916 = 22K, 999 = 24K. The numbers represent parts per 1000 of gold. US jewelry is often stamped with karat number (14K, 18K) instead. Plated items are usually stamped 'GE' (gold electroplate), 'HGE' (heavy gold electroplate), or 'GF' (gold filled) — these have minimal gold content.
Is 10K gold worth selling?
Yes, 10K gold has real scrap value — it's 41.7% pure gold. A 10-gram 10K piece at $2,350/oz gold = ~$314 melt value. However, since 10K has lower gold content, many buyers offer lower percentages (55–70% of melt rather than 85%+). Break-even point for selling: if the item has sentimental value or can be repurposed (resized, reset stones), keep it. For broken or unwanted pieces, selling scrap is worth the effort.
How do I weigh gold at home?
Use a digital gram scale with 0.01g precision (available for $10–20 on Amazon). Calibrate it with a known weight first. Weigh individual pieces separately if they're different karats. Remove stones if possible (gemstones don't count toward gold value). Convert grams to troy ounces by dividing by 31.1035. Our calculator accepts weight in grams, troy ounces, regular ounces, pennyweights, or kilograms.
What is the gold-to-silver ratio?
The gold-to-silver ratio is the number of ounces of silver needed to equal the price of one ounce of gold. Historically it averaged around 50:1; modern ratios have ranged from 17:1 (1980) to 125:1 (2020). A ratio above 80:1 suggests silver is undervalued relative to gold; below 50:1 suggests gold is undervalued. Traders use this ratio to decide when to swap between metals. Current ratio can be calculated by dividing gold spot price by silver spot price.