Scrap Price Calculator

Buyers quote scrap prices per gram, not per ounce. The Scrap Price Calculator converts the spot price into a fair dealer buy price for your karat. Enter the spot price and purity. You see what an honest offer looks like before anyone makes one.

This guide explains why dealers pay below melt, how the 85% rule works, and how to compare offers wisely. Two worked examples use the calculator's exact math. You will recognize a fair price instantly and reject a bad one confidently.

What a Scrap Buy Price Is

A scrap buy price is what a dealer pays per gram of your gold. It is always below the melt value. The gap covers refining, testing, and profit. Honest dealers quote it openly as a per-gram figure you can verify.

Buy prices move with the spot price every day. When spot rises, buy prices follow closely. When it falls, they drop too. The percentage of melt usually stays steadier than the dollar figure. That percentage is the number to watch carefully.

Different buyers pay different percentages of melt. Refiners pay the most for large lots. Pawn shops pay the least for speed. Jewelry stores fall somewhere in between. Knowing the typical range protects you from bad offers every time.

Why Dealers Pay Below Melt Value

Melting and refining cost real money. Assaying confirms the exact content. Furnaces consume energy around the clock. Chemicals purify the metal precisely. Each step has a price. The dealer passes these costs back through a lower offer.

Risk also justifies the discount. Gold prices can fall while metal sits in inventory. Testing can reveal lower purity than expected. Stolen-property laws create real compliance costs. Margins absorb all of this uncertainty for the dealer.

Profit is the final piece. Dealers are businesses, not charities. A fair margin keeps them operating and serving sellers. The question is never whether they profit, but how much. Reasonable margins run 5% to 20% below melt.

How Pawn Shops Differ From Refiners

Pawn shops and refiners serve different needs. Pawn shops offer instant cash for small lots. They pay the lowest percentages, often 60% to 75% of melt. Speed is their selling point, not price.

Refiners pay the highest percentages, often 90% to 95%. They need larger lots to bother. Minimums of several ounces are common. Payment takes days, not minutes. The trade-off is clear.

Gold buyers sit in the middle. They specialize in scrap and pay 80% to 90%. Many operate storefronts with same-day payment. For typical sellers, they offer the best balance. Know which type you are dealing with.

Match the buyer to your lot. A few grams belong at a gold buyer, not a refiner. A kilo belongs at a refiner, not a pawn shop. The right channel adds real dollars to your payout.

The 85% Rule of Thumb

Eighty-five percent of melt is a common fair offer from reputable buyers. It leaves the dealer room for costs and profit. It gives you most of your metal's value. Many reputable buyers cluster near this figure.

The rule is a starting point, not a law. Large lots can command 90% or more. Small lots may fetch only 80%. Location and competition shift the number. Use 85% as your baseline expectation.

The calculator bakes in this 85% figure. It multiplies melt value by 0.85 automatically. If a buyer offers far less, you will spot it. If they offer more, you have found a good deal.

How the Buy-Price Formula Works

The formula has three steps. First, convert spot to per-gram: divide by 31.1035. Second, adjust for purity: multiply by karat/24. Third, apply the dealer discount: multiply by 0.85.

In symbols: buy price = (spot/31.1035) × (karat/24) × 0.85. Each factor has a clear meaning. Unit conversion comes first. Purity adjustment comes second. The third is the dealer's share.

The result is dollars per gram. Multiply by your weight for the total offer. A 20-gram lot at $47.82 per gram brings $956.40. Per-gram figures make comparing buyers easy and fair.

How to Use the Scrap Price Calculator

1. Find the current spot price per troy ounce.
2. Type it into the first field.
3. Select your gold's karat.
4. Press Calculate to see the buy price per gram.
5. Multiply by your weight for the total.
6. Press Reset to start over.

Worked Example 1: $3,000 Spot, 14k Gold

Inputs

Spot price: $3,000 per troy ounce. Purity: 14 karat. The calculator assumes the standard 85% payout.

Calculation

Per-gram melt: $3,000 / 31.1035 = $96.45. Purity adjustment: $96.45 × 14/24 = $56.26. Dealer discount: $56.26 × 0.85 = $47.82.

Result

The estimated dealer buy price is $47.82 per gram. For 20 grams, that totals $956.40. Compare any offer against this baseline.

Worked Example 2: $2,400 Spot, 22k Gold

Inputs

Spot price: $2,400 per troy ounce. Purity: 22 karat. Higher purity this time, lower spot price.

Calculation

Per-gram melt: $2,400 / 31.1035 = $77.16. Purity adjustment: $77.16 × 22/24 = $70.73. Dealer discount: $70.73 × 0.85 = $60.12.

Result

The estimated dealer buy price is $60.12 per gram. Notice how higher purity outweighs the lower spot. Purity matters enormously.

Factors That Move the Percentage

Lot size is the biggest factor. Refiners pay more for larger lots. Fifty grams earns a better rate than five. Volume reduces their per-gram costs. Sellers benefit directly.

Competition is the second factor. Three buyers on one street bid against each other. A lone buyer in town sets the terms. Urban sellers usually do better. Rural sellers should get mail-in quotes too.

Payment speed matters as well. Instant cash costs the buyer more to provide. Bank transfers a few days later can earn better rates. If you can wait, ask about it. Patience sometimes pays.

The Role of Assay in Final Pricing

Assay is the scientific test of metal content. Fire assay melts a sample for precise analysis. X-ray fluorescence reads content without damage. Either method gives an exact purity number.

Buyers assay before finalizing large purchases. The assay can confirm or contradict the stamp. Honest discrepancies are small. A 14k stamp assaying at 13.8k is normal manufacturing variance.

Large gaps signal problems. Plated items fail assay dramatically. So do heavily soldered repairs. This is why buyers test rather than trust. The assay protects their margins.

Ask to see assay results on large lots. Reputable buyers share them freely. The numbers should roughly match your own testing. Transparency here separates professionals from opportunists.

Comparing Buyers the Smart Way

Always compare the per-gram price, not the total. Totals hide weight tricks. Per-gram figures are transparent. Ask each buyer for their per-gram rate directly.

Get quotes on the same day. Spot prices move daily. A quote from Monday cannot compare to Friday's. Same-day quotes keep the playing field level. Note the spot price with each quote.

Watch for fee games. Some buyers quote high then deduct testing fees. Others quote slightly lower with no fees. The net payout is what counts. Ask for the final number in writing.

Mail-In Buyers: What to Expect

Mail-in services let you sell from home. You request a kit, ship your gold insured, and receive payment. Reputable services publish their payout percentages. The process takes about a week door to door.

Read reviews before choosing. Look for consistent payout complaints or praise. Check how they handle disputes. A good service photographs your items on arrival. That protects both sides.

Insurance is critical. Insure the shipment for full melt value. Use trackable shipping only. Keep copies of everything you send. These steps make mail-in selling nearly as safe as in person.

Compare mail-in percentages to local offers. Sometimes local wins on small lots. Mail-in shines for mid-size lots in areas with few buyers. Run the calculator for both scenarios before deciding.

How Gold Testing Protects Sellers

Testing is not just for buyers. Sellers benefit too. Knowing your exact purity prevents underpayment. A buyer cannot claim 10k when your test shows 14k. Facts level the playing field.

Home testing is affordable. Acid kits cost less than a restaurant meal. They handle the common karats reliably. Practice on known pieces first. Confidence comes quickly.

Document your test results. Photograph the test streaks alongside the pieces. Bring the photos to buyer meetings. Prepared sellers signal that lowballing will fail. Most buyers adjust accordingly.

Testing also catches surprises. That "14k" bracelet might be 12k. Better to learn at home than at the counter. Adjust your expectations before negotiating. Knowledge prevents disappointment.

Common Mistakes When Accepting Offers

The biggest mistake is accepting the first offer. First offers are rarely the best. They test whether you did homework. Prepared sellers get second, better offers. Always pause before agreeing.

Another mistake is ignoring the percentage. A $900 offer means nothing alone. Is it 85% of melt or 70%? Calculate the percentage every time. The calculator makes this trivial.

People also forget to verify weights. Some buyers round down aggressively. Watch your metal on their scale. Better yet, weigh it at home first. Disputes are rare when both sides measured.

Tips for Getting Top Dollar

1. Calculate the fair buy price before visiting buyers.
2. Get three or more quotes on the same day.
3. Ask each buyer their percentage of melt.
4. Weigh your gold at home first.
5. Watch all testing in person.
6. Negotiate politely but firmly.

Building a Long-Term Selling Strategy

One-time sellers just need a fair price today. Repeat sellers should think bigger. Building a relationship with one good buyer pays off. They learn your material. You learn their percentages. Trust grows.

Track every sale in a log. Record weight, karat, spot price, and payout percentage. Over time, patterns emerge. You will see which buyers treat you best. Data beats memory for these decisions.

Time larger sales to strong markets. There is no rush to sell scrap in a dip. Gold keeps indefinitely without degrading. Waiting for better prices costs nothing but patience. The metal will not spoil.

Finally, keep learning. Markets evolve and so do buyer practices. A few minutes of reading each year keeps you sharp. Informed sellers consistently earn more. That edge compounds across every sale.

When to Reject an Offer

Reject any offer below 75% of melt without a good reason. That is pawn-shop territory. Your metal deserves better. Thank them and leave. Better buyers exist.

Reject vague offers too. "Around $800" is not an offer. Demand exact per-gram pricing. Demand the assay basis. Professionals quote precisely. Amateurs hedge with vagueness.

Reject pressure tactics outright. "This price expires in ten minutes" is manipulation. Real buyers let you think. Walk out calmly. The metal keeps its value while you decide.

Trust your preparation. You calculated the fair price. You know the percentage. If the numbers do not work, they do not work. Patience is the seller's greatest tool.

How Taxes Apply to Scrap Sales

Gold sales can trigger capital gains tax. The gain is your sale price minus your cost basis. For inherited gold, the basis is usually the value at inheritance. Keep careful records of both numbers for your files.

Collectibles face special rates in some countries. Gold held as an investment may be taxed higher than stocks. Rules vary widely by jurisdiction. A tax professional can clarify your situation.

Small personal sales often fly under the radar, but the law still applies. Large sales may generate reporting forms from the buyer. Honest reporting avoids penalties later. When in doubt, disclose.

Frequently Asked Questions

General Questions

1. What is the Scrap Price Calculator?

It estimates the per-gram price a fair dealer pays for scrap gold. You enter the spot price and karat. It applies the standard 85% payout. The result is your baseline for comparing real offers from buyers.

2. Why 85% of melt?

It is a common fair-dealer figure. It covers refining, testing, and profit while giving you most of the value. Large lots may earn more than 85%. Small lots may earn less. Treat 85% as a reasonable expectation.

3. Is the result guaranteed?

No. It is an estimate of a fair offer, not a promise. Real buyers vary by location, lot size, and market conditions. Some pay more, some less. Use the number to judge offers, not as a guarantee.

4. Does it work for all karats?

Yes. Select any karat from 10k to 24k. The formula adjusts automatically for each purity. Lower karats produce lower per-gram prices. The math handles every purity the same way.

5. What about platinum or silver?

The formula structure works, but the 85% figure is gold-specific. Other metals have different refining costs and dealer margins. Use a metal-specific calculator for those. Do not apply gold percentages blindly.

How the Calculation Works

6. What is the formula?

Buy price = (spot/31.1035) × (karat/24) × 0.85. Convert to per-gram, adjust for purity, apply the dealer share. Three multiplications give the answer. The calculator does all of them instantly.

7. Why divide by 31.1035?

That is the grams in a troy ounce. Spot prices quote per troy ounce. Division converts to per-gram pricing. It is the standard precious-metals conversion used worldwide.

8. Can the percentage change?

In reality, yes. This calculator fixes it at 85% for simplicity. To model 90%, divide the result by 0.85 and multiply by 0.90. The adjustment takes seconds with any pocket calculator.

9. How do I get the total offer?

Multiply the per-gram price by your weight in grams. At $47.82 per gram, 20 grams brings $956.40. Weigh accurately for a trustworthy total. A tenth of a gram matters at these prices.

10. Why is my offer lower than the result?

The buyer may use a lower percentage than 85%. Small lots and slow markets push offers down. Ask what percentage they pay of melt. If it is far below 85%, keep shopping around.

Practical Questions

11. Should I clean gold before selling?

A gentle wash helps accurate weighing. Dirt adds false weight to the scale. Avoid harsh polishing that removes actual metal. Clean enough to weigh honestly, nothing more than that.

12. Do I need an appointment to sell?

Refiners often prefer them for larger lots. Pawn shops take walk-ins anytime. Calling ahead saves time everywhere you go. Ask what to bring, usually just ID. Some places have minimum lot sizes.

13. How is payment usually made?

Cash, check, or bank transfer are all common. Large amounts may require a transfer for safety. Get a receipt showing weight, karat, and price. Good records protect both sides of the deal.

14. Can I sell gold by mail?

Yes, through insured mail-in services. They test on arrival and pay by the same percentages. Read reviews carefully before choosing one. Insure the shipment for its full melt value.

15. What ID do buyers require?

Most places require government photo ID by law. It deters stolen-property sales effectively. The requirement is normal and legitimate everywhere. Bring your ID to avoid a wasted trip.

CONCLUSION

The Scrap Price Calculator puts a fair number in your pocket. Enter the spot price and karat. You get the per-gram buy price a reasonable dealer pays. Compare every offer against it. Knowledge is the difference between a fair deal and a costly mistake you will regret.