When you check gold rates online, you always see a higher price.
But when you go to sell your old gold, the buyer offers a lower price.
Many people think they are being cheated, but that’s not always true.
The scrap gold price is different from the market gold price because both follow different calculations.
Scrap gold includes old jewelry, damaged pieces, broken chains, or gold with stones and all of this affects its value.
What Is Market Gold Price?
The market price (also called spot price or live gold rate) is the global price of pure 24K gold per gram or ounce.
This price does not include labor, melting cost, impurities, or dealer profit.
It is the price you see on websites, Google, or gold charts.
What Is Scrap Gold Price?
Scrap gold price is the value of old or used gold after:
Removing stones, hooks, or other metals.
Checking purity (8K, 10K, 14K, 18K, 22K).
Melting and refining the gold That means the gold buyer has to clean, melt, and purify your gold before selling it again.
So the price drops.
Why Scrap Gold Price Is Lower? (Main Reasons)
Purity Loss Your jewelry is not 24K pure.
Lower purity = lower payment. Melting & Refining Cost Dealers pay for melting and purifying the gold. For example, a common piece like a 10k gold ring contains only 41.7% pure gold.
Business Profit Margin Gold buyers keep a small margin to resell and make profit.
Market Fluctuation Gold price changes every minute, buyers take safe margin.
Extra Materials Stones, alloys, design weight are not counted.
Example Calculation (Easy to Understand)
Market price of gold (24K) = $70 per gramYour jewelry purity = 22K (91.6% pure)Actual pure gold value = $70 × 0.916 = $64.12Melting & dealer margin = $4 to $6Final price you get = around $58 – $60 per gram
This is why the scrap price is always lower.
If you are planning to sell, it is important to know how to get the best price for your gold.
How to Get the Best Price for Your Scrap Gold
If you’re planning to sell gold jewelry or other scrap gold items, understanding how its value is determined is your most important first step.
This practical guide will walk you through how to secure a fair, competitive offer and sell your gold with confidence.
Step 1: Research and Accurately Value Your Gold
Being an informed seller is your greatest advantage.
Before you meet with any gold buyer or jeweler, take these steps to estimate your gold’s market value.
Determine the Live Market Price: Begin by checking the current spot price for 24K gold.
This global benchmark is the foundation for all calculations. For accuracy, use a trusted gold purity valuation tool.
Carefully inspect your pieces for hallmarks like 14K, 18K, or 22K, which indicate the gold content.
If you’re unsure, a gold purity guide can help clarify what these markings mean.
If a hallmark is missing or worn, assume a lower purity for a conservative estimate.
Calculate the Exact Weight: Use a precise digital gram scale to weigh your items. Knowing the exact weight helps you create a baseline for any offer you receive.
Step 2: Select a Reputable Gold Buyer
Not all gold-buying services offer the same experience or price. Investing time in choosing the right buyer is crucial for a satisfactory transaction.
Compare Multiple Gold Buyers: Obtain quotes from several reputable sources, such as local jewelers, dedicated gold buyers, or trusted pawn shops. Significant discrepancies between offers can be a warning sign.
Verify Credibility and Reviews: Research the buyer’s reputation. Read online customer reviews and seek personal recommendations to gauge their fairness and professionalism.
Choose Transparency Over Pressure: A trustworthy gold dealer will openly explain their entire valuation process, how they apply the market price, assess purity, and account for refining fees without using high-pressure tactics.
Step 3: Prepare Your Items for Appraisal
A little preparation ensures the evaluation process is smooth and that you present your items in the best light for an accurate assessment.
Organize Your Gold by Purity: Group your jewelry and other gold items by their karat value (e.g., all 18K pieces together).
This simplifies the appraisal and reduces the chance of error.
Remove Any Non-Gold Components: Detach gemstones, pearls, or other non-metal attachments beforehand.
While these aren’t part of the scrap gold value, you may be able to keep or sell them separately.
Step 4: Evaluate and Negotiate the Final Offer
When you receive a formal offer, engage with the process. A legitimate buyer will welcome your questions.
Request a Detailed Price Breakdown: Ask, “Can you walk me through your calculation?” A clear breakdown should include the daily gold price, the purity assessment, and any deducted fees.
Clarify All Deductions and Fees: Ensure you fully understand any charges for refining, handling, or the buyer’s margin.
There should be no hidden costs.
Feel Empowered to Decide: If something feels off, the explanation is unclear, or you feel rushed, politely decline.
Trust your instincts; there are always other buyers available.
Selling your gold doesn’t have to be daunting.
By taking these steps to sell gold jewelry wisely, you transform from a casual seller into a prepared one, ensuring you get the best price for your gold and achieve a secure, transparent transaction.
Final Tip Before Selling Scrap Gold
✅ Check today’s live gold rate
✅ Know your purity (karat)
✅ Compare 2–3 gold buyers✅ Avoid selling in a hurry
Do all gold buyers follow the same rate?
Do all gold buyers follow the same rate?
No. Every buyer has different margin and refining charges, so you may get different prices from different shops.
Can I calculate scrap gold price at home?
Yes. You only need:
✅ Today’s 24K gold rate
✅ Your gold purity (karat)
✅ Weight in gramsThen multiply:24K rate × purity % × weight
Do I get more money if my gold is hallmarked?
Yes, most buyers trust hallmarked gold, so they give better rates and lower deductions.
Does gold price change daily?
Yes, gold price changes every day, sometimes every hour, depending on world market rates.
Why do pawn shops pay the lowest price?
Because pawn shops work on loan-based value and keep a big safety margin in case you don’t return to reclaim the item.
Can I get the full value if I sell gold coins or bars?
Gold coins and bars usually get higher payout than jewelry because they are already pure, often 24K, and don’t need melting.
Is it better to sell gold when prices are high?
Yes. If global gold rates are high, you get more money. Gold is like a commodity — timing matters.
How much is 14 karat scrap gold worth per gram
The value of 14K scrap gold is typically 60-70% of the daily gold spot price per gram, minus any refining fees.