What Is Gold Melt Value?
Melt value (also called “intrinsic value” or “scrap value”) is the value of the pure gold inside a piece of jewelry, coin, or bar — independent of design, craftsmanship, or brand. If you melted the item down, refined the gold to pure bullion, and sold it at the spot price, melt value is what you'd theoretically receive.
Why does it matter? Because it's the only objective benchmark for what your gold is actually worth. Pawn shops, jewelers, and cash-for-gold stores often quote prices that sound reasonable until you compare them to melt. Knowing your melt value protects you from getting underpaid.
The Melt Value Formula
Melt Value = (Weight ÷ 31.1035) × Karat Purity × Spot Price
- Weight is in grams. (1 troy ounce = 31.1035 grams)
- Karat purity is the fraction of pure gold in the alloy (see table below).
- Spot price is the live gold price per troy ounce in USD.
Karat Purity & Per-Gram Melt Value (at $3,000/oz spot)
| Karat | Purity | Melt $/gram | Common Use |
|---|---|---|---|
| 10K | 41.7% | $40.21 | Class rings, costume jewelry |
| 14K | 58.3% | $56.26 | Most US fine jewelry |
| 18K | 75.0% | $72.34 | High-end jewelry, watches |
| 22K | 91.6% | $88.35 | Indian/Middle Eastern jewelry |
| 24K | 99.9% | $96.45 | Bullion bars, coins |
Per-gram values shown at a hypothetical $3,000/oz spot price. Multiply by your weight to get full melt value. Live spot prices fluctuate daily — use the live gold price for current numbers.
Worked Example: A 10-Gram 14K Gold Necklace
Weight: 10 grams
Karat: 14K (58.3% pure)
Spot price: $3,000 / troy oz
Step 1: 10g ÷ 31.1035 = 0.3215 troy oz
Step 2: 0.3215 × 0.583 = 0.1875 troy oz of pure gold
Step 3: 0.1875 × $3,000 = $562.60 melt value
Reputable online buyer pays 90% of melt → $506.34
Pawn shop pays 50% of melt → $281.30
Melt Value vs Resale Value
Melt value is the floor — but some items are worth significantly more for reasons beyond gold content:
- Numismatic coins (graded or rare) can sell at 1.5-10x melt.
- Branded jewelry (Tiffany, Cartier, Bulgari) holds 30-70% of original retail.
- Vintage / antique pieces can have collector premiums.
- Designer signatures on watches or bracelets add measurable value.
For these items, sell to a specialty dealer or auction — never to a melt-only buyer.
Why Buyers Pay Below Melt
No buyer pays 100% of melt. Here's why, and what fair pricing looks like:
| Cost | Typical Impact |
|---|---|
| Refining (alloy separation) | 2-4% |
| Assay / XRF testing | 0.5-1% |
| Insurance & shipping | 0.5-1% |
| Buyer profit margin | 3-7% |
| Total deduction | 5-15% |
That's why 85-95% of melt is the fair-pricing range. Pawn shops paying 40-60% are charging you 30-50% extra for “immediate cash convenience.”
How to Get Closest to Melt Value
- Use online buyers — they consistently pay 85-95% because they have lower overhead.
- Insist on XRF testing — acid tests undervalue gold by 2-5% on average.
- Verify spot price on day of sale — buyers should use today's spot, not yesterday's.
- Sort by karat before sending — mixed-karat lots can get averaged down to the lowest karat.
- Get 2 quotes from different online buyers for any sale over $1,000.
- Skip pawn shops and gold parties — they almost never pay above 60% of melt.
Frequently Asked Questions
What is the melt value of gold?
Melt value is the value of the pure gold content in an item — calculated using weight, karat purity, and the live spot price. It's the floor of what your gold is worth.
How do you calculate gold melt value?
(Weight in grams ÷ 31.1035) × Karat Purity % × Spot Price. Example: 10g of 14K at $3,000/oz = (10 ÷ 31.1035) × 0.583 × $3,000 = $562.60.
Why don't buyers pay full melt value?
Buyers pay 85-95% of melt because they incur refining, testing, overhead, shipping, insurance, and need profit margin. Anything below 80% means you're being underpaid.
Is melt value the same as resale value?
Not always. Numismatic coins, branded jewelry, and vintage pieces can sell for 1.5-10x melt. For ordinary scrap or jewelry, melt is the realistic ceiling.
What's the melt value of 14K gold per gram in 2026?
At $3,000/oz spot, 14K gold has a melt value of approximately $56.26 per gram. This changes daily with spot prices.