Have you ever wondered how the price or market value of gold coins or coins is being determined? Do you want to know the spot price of your precious metal or gold scrap? Then, this post is for you.
With a gold calculator, you can determine the most recent gold price. It will also assist you with deciding your gold’s worth. You can use an ordinary computerized scale to know the weight of the gold coins or bars. Next, input your gold item’s weight into the gold melt value calculator. The importance of this calculator is that the values can be estimated in ounces, pounds, and kilograms.
Gold Melt Value Overview
Intrinsic value or melt value refers to the worth of your gold coins or bars or gold value which is not completely fixed by the amount of gold they contain. Even if the gold item’s standard weight is increased based on the gold spot price, the melt value in bullion bars or coins remains unfixed. For instance, if the gold spot price of 0.8 oz gold is $1,600, then its melt value is $1,280.
Gold Scrap Value Overview
Gold scrap value refers to the estimated gold worth from either salvaging or selling. If you own unused old gold jewelry, you can sell it for scrap value. In other words, the jewelry will be melted down to become bullion.
But please note that it is critical to determine what sort of gold jewelry you own before selling it. You can consult a reliable and professional jewelry appraiser to get an idea regarding your precious metal’s value.
A karat refers to the unit of comparative measurement for the gold purity in metal alloys. The percentage of gold found in jewelry, bar, or coin is usually expressed in karats in parts per 24. Generally, if an item is stamped 24k, it is considered to contain a gold purity of 99.9% or higher.
Here are some of the most common karat stamps:
6K – 25% pure gold
8K – 33.33% pure gold
9K – 37.5% pure gold
10K – 41.67% pure gold
11K – 45.83% pure gold
12K – 50% pure gold
13K – 54.17% pure gold
14K – 58.33% pure gold
15K – 62.5% pure gold
16K – 66.67% pure gold
17K – 70.83% pure gold
18K – 75% pure gold
19K – 79.17% pure gold
20K – 83.33% pure gold
21K – 87.5% pure gold
21.6K – 90% pure gold
22K – 91.67% pure gold
23K – 95.83% pure gold
24K – 99.9% pure gold
Calculating Gold Melt Value
Pure gold bars and coins are worth exactly what they are worth in gold’s intrinsic value or melt value. The nominal weight of the gold coins or bars is multiplied by the current gold price to know their melting value.
To calculate the melting value of gold jewelry, multiply its weight in grams by its purity % and current gold per gram price. When estimating a piece of a gold ring’s melt value, determine its purity % of gold, approximate weight in grams, and the gold per gram price as of the date of estimation.
Since the low purity of a precious metal can determine its spot market value, you will know exactly how much of a premium you are paying.
Factors to Consider When Calculating the Current Gold Price Melt Value
Here are the things you should consider when determining the current gold price melt value:
Troy ounce is the gold’s standard unit of measurement, which is equivalent to 31.1 grams and is 10% heavier than an avoirdupois ounce. Gold bullion bars come with their weight and gold purity or weight stamped on them, particularly those struck by official mints.
The gold bullion’s refined quality is a measure of its gold and karat purity. Typically, gold bullion is 99% pure, and its melt value is more than gold in various forms, such as jewelry, coins, etc. An ounce of gold bullion value must have the same value as an ounce of gold at the spot price. Then, it is quoted in dollars per pure gold ounce.
Gold Spot Price
Anyone interested in determining the current gold price should consult reliable precious metals magazines, such as the Financial Times and Bloomberg. Remember, the gold price has considerable variation. If you want to have a long-term gold investment, you must not worry too much about the spot gold price’s short-term wings.
How to Calculate Gold Melt Value with a Calculator
Below is how you can calculate the gold coin melt value using a gold calculator in different situations:
- First, enter the gold weight in grams. You can use the gold weight calculator if you know the gold’s dimensions but have no proper scale.
- Choose the gold purity.
- The calculator automatically sets the gold purity.
- Enter the gold’s current market price.
- The gold melt calculator displays the gold’s possession value.
Gold Trade Exchange
- The spread increased the asking price and decreased the bid price based on the provided % margin.
- The asking price refers to the price that sellers will be willing to accept.
- The bid price refers to the price the buyers will be willing to pay.
Gold Spot Price Melt Value Vs. Value in Circulation
Now, you may wonder whether the gold sport price melt value is always more than its value in circulation.
The answer is NO. Gold melt value and market value do not always correspond perfectly, depending on the object in question. For example, an intricate-looking heirloom or well-made antique can offer a price premium much higher than the melt value of old scrap gold.
Also, gold price and melt value do not always have the highest estimate. For example, an item can have the same high intrinsic worth as gold. However, it can have a low market value because it is considered difficult to melt down into its component metals and is extremely unattractive.
Gold Jewelry Melt Value
If a piece of gold jewelry has a specific precious metal percentage in its synthesis, it is marked with a virtue stamp that displays the corresponding karat value. The stamps in purity levels can be between 6K (almost pure gold) and 24K (pure gold).
A gold stamped 18K is considered 75% pure gold. This is because 18 is divided by 24 and it is equal to 0.75. Then, it is multiplied by 100.
If you divide 14 by 14, you will get 0.583. Then, it is multiplied by 100, giving you 58.3% pure gold, silver coins, etc., in a piece of jewelry. Please note that the melting value of copper, scrap gold, and silver in US dollars is directly tied to the gold value.
Using Gold Melt Value When Buying or Selling Gold
When you purchase gold, you can assume you do not pay more than the general gold value. If some of the gold bullion comes with a higher numismatic value, you can make a profit from the sale. Meanwhile, if you purchase gold coins at their numismatic value, expect that they may lose value in the long run.
Remember, gold price determined by its melting point is the gold commonly used by the gold IRA funds. If gold and silver coins have decorative elements, they are produced by different countries as investment vehicles.
Using Gold Melt Value Testing Kit for 10K, 14K, and 18K Values
You can use a gold testing kit to know the worth of your gold spot price at home.
In sell and purchase pawn shops, the silver and copper melting prices per gram or ounce, as well as the gold bid and spot prices, usually fluctuate. However, some markets place a monetary value on gold based on its density measured in ounces or grams.
A gold testing kit comes with a nitric acid bottle that has different karat stamp concentrations, such as 24K, 21K, 18K, etc. Make sure to read the directions before starting the test using this kit.
Calculating the Gold Jewelry Melt Value Using a Calculator Manually
You can use the formula below to calculate the gold value:
G = M x (Q ÷ 100) x P
Please consider the terms below for a better understanding:
- G – refers to the gold value in one’s possession
- M – refers to the amount of one possesses
- Q – refers to the gold purity percentage
- P – refers to the price per ounce
Note: Both the gold and its price are expressed as a mass.
The Importance of Melt Value
Knowing the melt value is critical as it impacts the selling and buying prices. An item priced at $600 but only worth $500 when the gold is melted down is an excellent example of paying a premium over the true value of the item,
If you know the amount an item will be worth when melted down, you will have a great starting point if you plan to sell it in the future. You must not sell an item for less than it will cost if melted down if you wish to make a direct profit through its gold value.
Furthermore, if you plan to sell an item for less than its gold value, melting it down can give you more money. But this is not always the case. In most cases, the item’s melting-down cost outweighs the financial benefits. This makes it more practical to sell it instead,
Melting Values of the US Gold Coins
Gold value usually depends on its gram weight. If you are curious about the in-demand US gold coins’ melting values as well as the current gold price (spot price), check out the following:
Gold Eagle $5 – 1/10 Ounce (1986 – Date)
- Metal content – 91.67%
- USD or Value in Dollar – $197.61
Indian Head $10 Coins (1907 – 1933)
- Composition As Per Weight – 90% gold
- Metal Value in Dollar – $955.94
Saint Gaudens Gold $20 Double Eagle (1907 – 1933)
- Metal Content – 10% Copper; 90% Gold
- Weight – 33.44 grams
- Denomination – $20.00
- Metal Value – $1918.9092
Coronet Head Gold $20 Double Eagle (1849 – 1907)
- Metal Content – 10% Copper; 90% Gold
- Weight – 33.44 grams
- Denomination – $20.00
- Melt Value – $1918.9092
A precious metal investment’s worth depends on several factors, including the metal melt value. Gold and other precious metal investments come with a risk of decline in value if the price of the gold decreases, like any other investment. So, before making a precious metal investment, ensure to talk to a reputable financial advisor. Hopefully, this post helped familiarize you with the gold melt value calculator.
Frequently Asked Questions
What is gold’s melting point?
Pure gold melts at 1,945 degrees Fahrenheit, around 1,336 K or 1,063 degrees Celsius. This precious metal boils at 2,700 degrees Fahrenheit, which is almost 1,755.3 K or 1,482 degrees Celsius. In comparison, an average cooking fire reaches as high as 700 degrees Fahrenheit. If you need to melt your gold at home, you will need a propane torch.
How pure is my 14K gold?
The purity of 14K gold is 58.33%. This means if it is melted and its weight is calculated, you will get 58.33% pure gold. Then, the rest will be other impurities and elements.
What is a 10K gold melt value of 1 gram at $2000 per troy ounce?
The value of 10K gold weighing 1 gram at $2,000 per troy ounce is $27.79. This value is obtained using the formula; Value of Gold = Weight of Gold x (Quality of Gold / 100) x Price per Unit Mass of Gold