When you sell gold, you're mostly selling the metal inside it. A good buyer works out exactly how much pure gold your piece contains, then pays you based on that day's market price. Here's how that math works, so you know what to expect.
1. Purity: what the karat stamp means
Pure gold is 24 karat. Jewelry is almost always mixed with other metals to make it stronger, and the karat stamp tells you how much of it is gold.
| Stamp | Also marked | Gold content |
|---|---|---|
| 10K | 417 | 41.7% |
| 14K | 585 | 58.5% |
| 18K | 750 | 75.0% |
| 22K | 916 | 91.6% |
| 24K | 999 | 99.9% |
Stamps can be worn off or wrong, so buyers test the metal with acid or an electronic tester. Gold-plated and gold-filled pieces (often stamped GP, GF, or HGE) contain very little gold.
2. Weight: grams, pennyweights, and troy ounces
Gold is weighed on a precise scale. You'll hear three units:
- Gram (g): what most scales show.
- Pennyweight (dwt): 1.555 grams, common in the jewelry trade.
- Troy ounce (ozt): 31.1 grams. The market price is quoted per troy ounce, which is heavier than a regular ounce (28.35 g).
Stones, clasps, and springs that aren't gold are taken out of the weight, or estimated if they can't be removed.
3. The spot price
The spot price is the market price of one troy ounce of pure gold right now. It changes throughout the day, and every buyer starts from it. Silver has its own spot price.
4. Putting it together: melt value
Melt value is what the pure gold in your piece is worth at spot:
Melt value = weight in grams ÷ 31.1 × purity × spot price
Example (illustrative numbers only): a 14K chain weighing 10 grams, with gold at a spot price of $4,000 per troy ounce: 10 ÷ 31.1 × 0.585 × $4,000 ≈ $752 melt value.
5. Why offers are below melt value
A buyer has to refine the gold or resell it, and both cost money and take time while the price moves. So offers for scrap and everyday jewelry are a percentage of melt value. What matters is that the buyer tests and weighs in front of you and explains the number.
When a piece is worth more than its gold
- Collectible coins can be worth far more than their metal.
- Designer and branded jewelry may sell as jewelry, not scrap.
- Large diamonds and gemstones are valued separately from the metal.
Silver works the same way
Sterling silver (stamped 925 or STERLING) is 92.5% silver. US dimes, quarters, and half dollars dated 1964 and earlier are 90% silver. Silver is worth far less per ounce than gold, so it takes more of it to add up.
Tips before you sell
- Check the spot price on the day you sell.
- Separate pieces by karat if you can.
- Bring a photo ID; Georgia requires it for every purchase.
- If you might want it back, ask about a pawn loan instead.
This guide is general information, not legal advice. Rules change; ask us at the counter or check the official source if you're unsure.