Monday, May 5, 2025

How Much Is My Scrap Gold Worth?

(Mike Maharrey, Money Metals News Service) With gold setting record after record, people are scrambling to cash in by selling scrap gold and jewelry.

Selling gold tucked away in a jewelry box or gathering dust on a shelf can certainly put extra cash in your wallet, but you should manage your expectations. How much you’ll get for your gold will vary wildly depending on its purity.

Gold Selling Frenzy

According to Financial Times article, pawnbrokers in England report a surge in people inquiring about the value of gold items for sale or pawning.

Sutton & Robertsons operates four pawn shops in London, along with an online service. Managing director Jim Tannahill told the FT that he’s seen a 30 percent increase in first-time pawnbroking customers. He said about 90 percent of the pawnbroker’s loans are secured by gold, luxury watches, and jewelry.

Meanwhile, H&T, Britain’s biggest pawnbroker, reported record profits in its full-year report released in March. A spokesperson said record gold prices have boosted the number of new customers to an all-time high.

This is a testament to gold’s enduring value and the fact that it is recognized as money around the world.

Tannahill said many of his customers are business owners and entrepreneurs, and they are aware they can currently borrow more against their gold than ever before.

While many people use their gold as collateral for loans, others are selling gold outright. Tannahill said his company has seen a 105 percent increase in gold purchases since last September.

According to the FT, one of the biggest trends is collectors selling coins. Tannahill noted that profits from selling British sovereigns and Britannias made by the Royal Mint have the advantage of exemption from capital gains tax.

Certain gold and silver bullion coins provide tax advantages in the U.S.

How Much Will I Get for My Gold?

If you’re thinking about selling your gold, your first question is probably: How much money will I get for it?

The answer is that it depends on the purity.

You’re going to get a lot more for a .999 percent pure 1-ounce gold bullion coin than you will for a 1-ounce 14-karat chain.

Gold purity is measured in karats. Each karat represents 1/24th of the whole. In other words, an 18-karat gold ring is 18 parts gold and 6 parts other metals, or 75 percent gold.

Ten karat gold is the minimum standard in the U.S., representing 41.7 percent gold.

This system is mainly used in jewelry. For bullion and coins, purity is often expressed in decimal form (e.g., .999 or .9999 fine gold, which means 99.9 percent or 99.99 percent pure).

Most jewelry, especially if sold in the U.S., is 10, 14, or 18 karats. That means it has a much lower gold content than a bullion coin.

Other metals are mixed with gold to make jewelry to make it harder and more durable. Gold is a relatively pliable metal, and pure gold jewelry can be easily bent.

Twenty-four karat jewelry is much more common in Asia, where it is viewed much differently in the West. It is seen as not only an adornment but also an investment. For instance, much Indian jewelry is made from pure 24-karat gold, as opposed to the 14 and 18-karat pieces more common in the U.S. and Europe. Many Indian families use gold jewelry as savings.

The bottom line is that a dealer will determine the value of your gold based on both its weight and its purity. And of course, the buyer is going to collect a premium on the sale. After all, that’s how the dealer makes his living. Keeping this in mind, you should shop around to find the lowest premiums when you’re seeking to sell.


Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.

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