---
title: "What Is Scrap Gold and How Is It Valued?"
source: "https://goldealers.co.uk/knowledge/gold/what-is-scrap-gold-valued"
date: "2025-12-02"
---

# What Is Scrap Gold and How Is It Valued?

Not all gold is sold as coins or jewellery; "scrap gold" refers to any gold items sold for their material value rather than their form. In this article, we clarify what counts as scrap gold – from broken necklaces to outdated jewellery – and how its value is calculated.

> **Quick Summary:** Scrap gold value is determined by multiplying the item's pure gold content (based on carat and weight) by the current gold price, with a small deduction for refining costs. At Goldealers, we value scrap gold using real-time pricing in GBP per gram.

## Defining Scrap Gold

Scrap gold includes any gold items sold for their precious metal content rather than their design or craftsmanship:

- Damaged or broken jewellery
- Outdated or unwanted gold pieces
- Dental gold and gold crowns
- Gold flakes or small fragments
- Mismatched earrings
- Broken chains and clasps

> Even if your gold jewellery is broken or damaged, it still has value based on its gold content. The appearance doesn't affect the scrap value.

## Purity and Hallmarks

The purity (carat) of gold determines what percentage of the item is actual gold. UK hallmarks provide this information:

| Hallmark | Carat | Gold Content |
|----------|-------|--------------|
| 375 | 9ct | 37.5% |
| 585 | 14ct | 58.5% |
| 750 | 18ct | 75% |
| 916 | 22ct | 91.6% |
| 999 | 24ct | 99.9% |

[Complete guide to understanding gold hallmarks](/knowledge/gold/gold-purity-hallmarks)

### Finding Hallmarks

Hallmarks are usually stamped on:
- Inside of rings
- Clasp of necklaces and bracelets
- Back or inside of earrings
- Edge of bangles

## Weight and Units

Gold is weighed in grams or troy ounces (1 troy oz = 31.1035g). Dealers convert all items to calculate the weight of pure gold content.

### Example Calculation

For a 10g piece of 9ct gold:
- Weight: 10 grams
- Purity: 37.5% (9ct)
- Pure gold content: 10g × 0.375 = 3.75g pure gold

If gold is £50 per gram, the pure gold value would be: 3.75g × £50 = £187.50

## Market Price (Spot Price)

Scrap gold value is tied to the live market price of gold. The global spot price (per ounce) is converted to a per-gram price in GBP for UK sellers.

### How Spot Price Works

The spot price represents:
- The current global market price for immediate delivery
- Pure 24ct/999 gold value
- Fluctuates 24/7 based on trading
- Influenced by supply, demand, and economic factors

[Learn how gold prices are determined](/knowledge/gold/gold-prices-determined)

> Goldealers uses real-time pricing feeds, so you benefit from up-to-date rates rather than stale fixed prices.

## Dealer Offers

A reputable dealer like Goldealers will pay a percentage of the melt value to cover processing costs:

**Typical Offers:**
- Common scrap (9ct-18ct): 90-95% of pure gold value
- High purity items (22ct-24ct): 95-98% of pure gold value
- Large quantities: May receive higher percentages

### Why Not 100%?

The slight deduction covers:
- Refining and melting costs
- Melt loss (impurities that burn off)
- Testing and processing
- Business operating costs

## Complete Example Calculation

Let's value a 20g 18ct gold chain:

**Step 1: Calculate Pure Gold Content**
- Weight: 20g
- Purity: 75% (18ct = 750)
- Pure gold: 20g × 0.75 = 15g

**Step 2: Apply Current Gold Price**
- Current price: £50/gram (example)
- Gross value: 15g × £50 = £750

**Step 3: Apply Dealer Percentage**
- Dealer offers: 92% of melt value
- Your payment: £750 × 0.92 = £690

> Use Goldealers' online calculator to get an instant estimate based on current live prices for your specific items.

## Factors That Don't Affect Scrap Value

The following **do not** increase scrap gold value:
- Design or appearance
- Brand names (unless antique/collectable)
- Condition (broken vs intact)
- Cleaning or polishing
- Original purchase price
- Sentimental value

## Frequently Asked Questions

**Q: What is scrap gold and how is its value determined?**  
A: Scrap gold is any gold item sold for its metal value rather than craftsmanship. Its value is determined by the item's pure gold content (based on carat/hallmark and weight) multiplied by the current gold price, with a small deduction for refining costs.

**Q: Does the condition of my gold affect its scrap value?**  
A: No, scrap value is based purely on gold content. A broken chain has the same value as an intact chain of the same weight and purity.

**Q: How do I know if my hallmark is accurate?**  
A: Reputable dealers like Goldealers verify hallmarks using professional XRF testing equipment that confirms the actual gold content regardless of stamps.

**Q: Can I get paid the full spot price for my scrap gold?**  
A: Dealers typically pay 90-95% of the pure gold value to cover refining costs and business expenses. Offers above 95% are rare and should be verified carefully.

## Next Steps

Understanding scrap gold valuation empowers you to make informed selling decisions and recognize fair offers.

**Useful Resources:**
- [How to get the best price for your scrap gold](/knowledge/gold/best-price-scrap-gold)
- [How dealers test gold purity](/knowledge/testing/how-is-gold-tested)
- [Understanding melt value and melt loss](/knowledge/gold/gold-melt-value-loss)

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*Published by Goldealers Ltd · https://goldealers.co.uk/knowledge/gold/what-is-scrap-gold-valued*