Live gold spot — and what refiners actually pay
The number above is the spot price for one troy ounce of pure (.9999) gold, in USD — the LBMA gold fix set twice daily in London. Spot is the wholesale benchmark, the reference number bullion banks and refiners trade against. It's almost never what you'll get for jewelry, dental scrap, or inherited coins: refiners take a cut for assay, melt, and risk, and they buy by karat purity plus weight.
If you're sorting through a parent's jewelry box or weighing whether to part with a wedding band, the math below is the same one any reputable buyer uses. Walking in knowing it is the difference between a fair payout and a polite fleecing.
Pure gold vs alloys: the karat ladder
Gold for jewelry is alloyed for hardness and color. The karat number describes parts per 24 of pure gold by weight.
| Karat | Purity (fineness) | % gold | Common uses |
|---|---|---|---|
| 24K | .999 / .9999 | 99.9–99.99% | Bullion bars, coins (Maple Leaf, Buffalo) |
| 22K | .916 | 91.6% | Krugerrand, Sovereign, Indian jewelry |
| 18K | .750 | 75% | High-end jewelry, watches |
| 14K | .585 | 58.5% | US wedding bands, mid-market jewelry |
| 10K | .417 | 41.7% | Costume jewelry, US class rings |
| Gold-filled | (varies) | thin layer over base | NOT scrap gold — usually rejected |
| Gold-plated | (varies) | trace coating | NOT scrap gold |
A refiner's payout per gram = (spot/toz ÷ 31.1) × purity × payout_factor. Payout factors typically run 95–98% for sortable jewelry, 97–99% for sealed coins or bars, and as low as 80–90% for mixed-karat lots that need full assay.
What moves gold spot
- Real interest rates — when real rates fall (or are expected to), gold rises; when they rise, gold falls. The dominant macro driver.
- Central bank flows — ETF and central-bank net purchases drive a meaningful share of demand. Watch the World Gold Council data.
- USD strength — gold is priced in dollars; a stronger dollar makes gold relatively expensive globally and tends to push spot down.
- Geopolitical risk — flight-to-safety bids surface during equity drawdowns and conflict.
- Indian wedding season + Chinese New Year — physical demand cyclicality matters for short-term moves.
Selling gold scrap: the basics
- Weigh in grams, not pennyweights, ounces, or carats. Make sure the scale reads to 0.01 g.
- Karat-test before you sell. A jeweler's testing kit ($30) or an XRF gun (~$5,000+) confirms purity. If a buyer doesn't test on the spot, walk.
- Sort by karat. Mixed lots get assayed at the lowest karat in the bag.
- Weigh stones separately. Gem-set jewelry has a "stone-weight discount" that varies by buyer — get it in writing.
- Ignore "we pay 90% of spot" claims without reading the fine print. 90% of spot on pure gold equates to far less per gram of 14K — confirm the formula.
Coin and bullion sales
- Sealed government coins (Eagle, Maple Leaf, Krugerrand, Sovereign) sell at small premiums over spot at coin dealers. Don't melt these — they're worth more intact.
- Generic rounds and bars sell closer to spot but with fewer buyers; a coin shop pays better than a refiner.
- Damaged or scuffed coins get demoted to scrap and pay by weight × purity, losing the numismatic premium.
Frequently asked questions
Is the price on this page what I'll get?
No. This is spot — the wholesale benchmark. Your payout depends on karat, weight, refiner cut, and any stone-weight discounts. Expect 80–98% of spot equivalent depending on what you're selling and to whom.
Why is gold quoted in troy ounces, not regular ounces?
Troy ounces are a precious-metals convention (~31.1 g). Avoirdupois ounces (regular grocery-store ounces) are ~28.35 g. The unit mismatch is one of the easiest places to get short-changed if a buyer quotes in "ounces" without specifying.
Should I sell to a coin shop or mail-in refiner?
Coin shops pay slightly less but you walk out with cash same-day, no shipping risk. Mail-in refiners pay slightly more but require trust + insurance. For lots over $5,000, mail-in usually wins. For under $1,000, the local shop's premium is rarely worth the hassle.
Related
- Live silver price — companion precious metal, often paired in scrap lots
- Refining & selling guide — deeper dive on refiners, sorts, and what to expect
- Grades & purity guide — karat marks and how to read them
- Market & spot guide — what drives the day-to-day price