How do I know if a gold buyer is paying a fair price?
Updated October 2026: you know a gold offer is fair when you can check it against the melt value: the weight of the gold in grams, times its purity (14K is 58.5 percent), times the live spot price per gram. A fair buyer weighs and tests the gold in front of you, shows that math, and pays a stated share of it; an offer that will not show its numbers, or lands far below melt, is not fair. At Cash 4 Gold Trading Post every piece is XRF and acid tested in front of you and weighed on a certified scale at all 8 Central New Jersey stores, and the offer is shown as that calculation.
Key takeaways: judging a gold offer
- Melt value = grams of gold x purity x the live spot price per gram. It is the one number every fair offer is built from.
- Purity is fixed by the stamp: 10K is 41.7 percent gold, 14K is 58.5 percent, 18K is 75 percent, 22K is 91.7 percent, 24K is 99.9 percent.
- A troy ounce is 31.1035 grams; a pennyweight is 1.5552 grams. Compare quotes in the same unit.
- No buyer pays full melt; a fair one states its share and shows the math, so two quotes can be compared.
- Testing and weighing belong in front of you. Out of sight is the first red flag.
- Signed, antique and stone-set pieces can be worth more than melt: ask before anything is priced as scrap.
How do I check a gold offer myself?
- Sort by karat stamp. Look for 10K, 14K, 18K or 417, 585, 750 inside rings and on clasps. Keep each karat in its own pile so nothing is priced at the lowest karat in the lot.
- Weigh each pile in grams. A kitchen scale reading to a tenth of a gram is close enough for an estimate. Take off stones, springs and non-gold parts first, or expect the buyer to deduct them.
- Read the live price per gram. Gold spot right now is $4,155.49 per troy ounce. A 14K gram is worth $78.16 in metal, a 10K gram $55.71 and an 18K gram $100.20.
- Multiply. Grams times the per-gram figure for that karat is the melt value of the pile. Add the piles together. That total is the ceiling every buyer works below.
- Compare the offer to melt. Ask the buyer what share of melt they are paying. A buyer who answers with a number is one you can compare; a buyer who will not answer is telling you the offer does not survive the comparison.
Our gold melt calculator and the scrap gold value per gram table run steps 3 and 4 against the live price for you.
What does a fair gold buyer do?
| A fair buyer | A buyer to walk away from |
|---|---|
| Tests the gold in front of you (XRF analyzer, acid test) | Takes your gold to a back room to test it |
| Weighs on a certified scale facing you, in grams or pennyweights it names | Weighs out of sight, or switches units mid-quote |
| Quotes from the live spot price and shows weight times purity | Gives one lump number and will not break it down |
| Weighs each karat separately | Weighs mixed karats together at the lowest one |
| Looks for designer, antique or collector value before melting | Prices a signed or vintage piece as scrap without looking |
| Lets you leave with your gold and the quote, no pressure | Pushes a decision now, or the offer "expires" today |
| Is a licensed dealer with a fixed address and public reviews | Mail-in envelope, pop-up hotel event or no storefront |
Why is a fair offer below the melt value?
No buyer pays the full melt value, because the gold still has to be refined, and refining, testing, insurance and the store itself cost money. What makes an offer fair is not that it equals melt but that the gap is stated, small for the size of the lot, and the same whether or not you ask. Larger lots and higher karats usually earn a smaller margin, because the cost of handling them does not grow with their value.
Two offers can only be compared on the same basis: the same weight unit, the same karat sorting, and the same live price at the time of the quote. A per-pennyweight number is about 1.55 times a per-gram number for the same gold, which is why a quote can sound higher and still be lower.
How do I make sure I get the most for my gold?
Get a second quote from a buyer who shows the math, so you are comparing two numbers built the same way. Bring pieces as they are: broken chains are worth the same per gram as whole ones. Point out anything signed, antique or set with large stones, since those can be worth more than their metal. And sell on a day you choose, not the day a buyer tells you to.
What is my gold worth? Three worked examples at today's price
Each line below runs the formula against the live market feed, so the figures move with the price. Use them as the melt ceiling to hold an offer against.
| Example | Gold weight and purity | Melt value per gram | How to get the lot's melt value |
|---|---|---|---|
| Broken 14K chain | 20 grams at 58.5 percent = 11.7 grams of pure gold | $78.16 | 20 x the 14K per-gram figure |
| 10K class ring | 12 grams at 41.7 percent = 5.0 grams of pure gold | $55.71 | 12 x the 10K per-gram figure |
| 18K wedding band | 6 grams at 75 percent = 4.5 grams of pure gold | $100.20 | 6 x the 18K per-gram figure |
| 24K bullion bar | 1 troy ounce = 31.1 grams at 99.9 percent | $133.47 | Close to the spot price; bullion trades on a small spread |
How is a fair price set for jewelry, coins, bullion and scrap?
| What you are selling | What a fair price is built on | What to ask |
|---|---|---|
| Scrap and broken gold jewelry | Melt value: weight, karat, live spot | "What share of melt are you paying, and did you weigh each karat separately?" |
| Signed, designer or antique jewelry | Resale value, which can be well above melt | "Did you check for a maker's mark before pricing it as scrap?" |
| Stone-set jewelry | Gold weight with stones removed, plus the stones valued on their own | "Are the stones deducted from the weight, and are they priced separately?" |
| Gold bullion coins and bars | The live spot price with a small dealer spread | "How far under spot is this, and what do you sell the same coin for?" |
| Collectible and rare coins | Numismatic value: date, mint mark, grade, certification | "Is this priced as a collectible or only for its metal?" |
What questions should I ask before accepting a gold offer?
- What did each piece weigh, and in what unit?
- What karat did each test as, and can I watch the test?
- What spot price is this offer based on, and when was it read?
- What share of melt value are you paying?
- Did anything get priced above melt for its maker, age or stones?
- Can I take this quote with me and come back?
- Are you a licensed dealer, and how do you pay: cash, check, or transfer?
What gold selling myths cost sellers money?
"My gold is worth the full spot price." Spot is the price of pure gold in bulk. Jewelry is an alloy, so its gold content is the weight times the karat's purity, and every buyer works below melt by a refining margin.
"A higher per-pennyweight quote is a better offer." A pennyweight is about 1.55 grams, so per-pennyweight numbers always look bigger. Convert to the same unit before you compare.
"All gold buyers pay about the same." They start from the same spot price but keep very different margins, which is why a second quote built the same way is worth the trip.
"Mail-in is just as good as walking in." With mail-in, your gold is weighed and tested where you cannot see it, and you are asked to accept or reject after it has left your hands.
Want the math done in front of you? Bring your gold to any of our 8 stores: free testing, a certified scale you can watch, and an offer shown as weight times purity times the live price.
Find your nearest storeFair gold price FAQs
How do I know if a gold buyer is paying a fair price?
Check the offer against the melt value: grams of gold times its purity times the live spot price per gram. A fair buyer tests and weighs in front of you, shows that math, and tells you what share of melt they pay.
What percentage of melt value is fair for gold?
It depends on the size and karat of the lot, since refining and handling costs do not grow with value. The test of fairness is that the buyer states the share and shows the math, so you can compare it with a second quote built the same way.
How is the price of my gold calculated?
Weight in grams, times purity (10K is 41.7 percent, 14K is 58.5 percent, 18K is 75 percent), times the live spot price per gram, which is the spot price per troy ounce divided by 31.1035.
Should I get more than one quote for my gold?
Yes. Two quotes built on the same weight unit, karat sorting and live price are the simplest way to see whether an offer is fair.
Is it a red flag if a gold buyer tests my gold out of sight?
Yes. Testing and weighing should happen in front of you, on equipment you can see, so the purity and weight the offer rests on are not in question.
Where can I get a fair price for gold in Central New Jersey?
Cash 4 Gold Trading Post buys gold at all 8 stores, in Aberdeen, Brick, East Brunswick, Farmingdale, Manalapan, Middlesex, Millstone and New Brunswick, with XRF and acid testing in front of you, a certified scale and the offer shown as the calculation.