Scrap Gold: What It Is, How It Works, and Why It Matters

In a world where sustainability and smart investing are becoming increasingly important, scrap gold has emerged as a valuable asset for both individuals and industries. Whether you're cleaning out old jewelry or navigating the precious metals market, understanding what scrap gold is — and how to profit from it — can pay off in more ways than one.

What Is Scrap Gold?

Scrap gold refers to any gold item that is no longer wanted in its current form and is destined to be melted down and recycled. This can include broken jewelry, old dental work, gold coins, electronics components, or even industrial byproducts. While the aesthetic or functional value of these items may be lost, the intrinsic value of the gold remains.

How Is Scrap Gold Processed?

The value of scrap gold depends on its karat (purity) and weight. Here’s how the process typically works:

Sorting and Testing: Items are sorted by karat value — 24K being pure gold, and anything less containing a mix of other metals. Acid tests, electronic testing, or X-ray fluorescence (XRF) are used to determine purity.

Weighing: Gold buyers or refiners weigh the item to determine how much pure gold it contains.

Refining: The gold is melted down and refined to separate it from other metals and impurities. The result is pure, reusable gold that can be repurposed for new jewelry, electronics, or investment products.

How Much Is Scrap Gold Worth?

Scrap gold is priced based on the current spot price of gold, which fluctuates daily due to global market trends. However, sellers typically receive a percentage of this price — often between 60% and 90% — depending on the buyer, quantity, and purity of the gold.

We pay 80% to 85% for all prepared scrap gold, with higher rates available for larger quantities.

Selling Scrap Gold: What to Know

If you're looking to sell scrap gold, here are some tips to maximize your return:

Sort Your Scrap Gold: Sort what you are looking to sell. If karat markings are present, sort into like groups.

Check the Market Price: Always be aware of the current spot price of gold before selling.

Find A Trustworthy Buyer: Read reviews as reputation matters. Choose a buyer who is transparent and trustworthy.

More Questions?

Visit our store for a free appraisal with no obligation to sell. Find out why we are the #1 gold buyer in the San Francisco North Bay.

Rinkor Rare Coins, LLC
2600 Mendocino Avenue, Suite C
Santa Rosa, CA 95403
707-546-2575