Scrap gold is really any gold that is not wanted or which can be turned into cash or profit. Scrap gold can include gold jewelry, gold chains, gold fillings (dental), nuggets and bars. In fact anything that is made of gold or has gold in it.
Consumers should not expect to receive the current per ounce price of gold. Most gold purchasers will pay 50-80% of the current gold “spot price,” depending on the amount being traded in. The rule of thumb is, the more you trade (by weight), the more you will be paid per ounce.
If you sell gold jewelry for its scrap value, you'll lose much of its retail value, perhaps 75% or more. The scrap price is based on the value of the metal alone and doesn't reflect the craftsmanship or any aesthetic or antique value, let alone emotional attachment you or family members may have to the piece.
There is a formula which scrap gold dealers use and when calculating the value of scrap gold. Separate the gold you have into their various karat fineness. Some will be 10 karat, some 14 karat, 18 karat, 22 karat or 24 karat, the purest. You might need to examine detailed numbers stamped on the gold or if there are none then have the gold examined or tested by a reputable dealer.
You should keep in mind that some testing may involve the loss of some gold so this is only recommended where you have a decent amount. If it is just a ring or small chain it may not be worthwhile having it tested. It is possible that some gold is simply gold plated and therefore would hardly be worth while selling as gold.
Any gold coins should be looked at separately. They can have what is called a numismatic value. That is to say, the rarity, age, condition and other factors can have a bearing on the value of the gold coin. In some cases the gold coin value as a rare gold coin can be much more than the value of the gold it contains.
Most people use grams for these calculation but many scrap gold buyers use pennyweight (DWT) instead of grams. There are 20 pennyweights in a troy ounce. So in this case you can substitute 20 for 31.1 to calculate pennyweight in our formula. You can also multiply a pennyweight by 1.555 to get an equivalent gram weight or divide a gram weight by the same 1.555 to get pennyweight.
Scrap gold dealers generally will not give you top value for gold. However in these uncertain times many are looking for gold themselves so are likely to pay for gold and usual If you are selling scrap gold you might be better off selling privately or by auction, depending on the amount you have to sell.