We believe you deserve to know exactly how your gold’s value is calculated. No secrets, no hidden adjustments, just live data and straightforward math. This page breaks down our entire process.
The Pillars of an Accurate Gold Calculation
Our calculator’s accuracy rests on three key pieces of data: the live market price of gold, the weight of your item, and its purity.
1. The Live Gold Price
We don’t use yesterday’s price or a weekly average. Our tool connects directly to a leading financial data provider (Metals-API or a similar trusted source) for the real-time COMEX spot price of gold (XAU). This price is typically quoted in troy ounces, so we instantly convert it to a price per gram for our calculations.
2. Your Gold’s Weight & Purity
You provide the final two inputs: weight and purity (Karat). A Karat is a measure of the ratio of pure gold to other metal alloys, out of 24 parts. For the most accurate calculation, our tool converts Karats into their exact fineness percentage, as shown here.
(Purity Table – Placed in the right-hand column)
Design: A clean, simple table with dark blue headers and Lato font. This looks professional and is incredibly useful.
| Karat (k) | Fineness | Pure Gold % | Common In… |
|---|---|---|---|
| 24k | 999 | 99.9% | Bullion, Investment Coins |
| 22k | 916 | 91.6% | India, Middle East |
| 18k | 750 | 75.0% | Europe, High-End Jewelry |
| 14k | 583 | 58.3% | United States |
| 10k | 417 | 41.7% | United States |
| 9k | 375 | 37.5% | United Kingdom |
The Gold Conversion Formula
The formula for determining the melt value of gold is universal and simple. We take the weight of your item, multiply it by its purity percentage, and then multiply that by the live price of gold per gram.
Final Value = (Weight in Grams) × (Purity Percentage) × (Live Price per Gram)
Let’s Calculate Together
Let’s imagine you have a 14k gold chain that weighs 18.5 grams. Here is exactly how our calculator would determine its value, assuming a live spot price of $4,000 USD per troy ounce.
Step 1: Find the Price Per Gram
First, we convert the spot price from troy ounces to grams.
$4,000 / 31.1035 grams per troy ounce = **$128.6 per gram**
Step 2: Find the Pure Gold Content
Next, we find the weight of the pure gold in your 14k chain.
18.5 grams × 0.583 (58.3% purity for 14k) = **10.78 grams of pure gold**
Step 3: Calculate the Final Value
Finally, we multiply the weight of the pure gold by the price per gram.
10.78 grams × $128.6 per gram = **$1,386.3**
Our gold calculator would show you a melt value of $1386.3. It’s that simple and transparent.
What This Number Means For You
The value shown by our calculator is the 100% full melt value of the raw precious metal on the open market. This number is your most powerful tool in any negotiation.
It is not the cash offer you will receive from a gold buyer. Any reputable buyer must account for their own business costs—refining, insurance, shipping, and profit. Typically, offers for scrap gold range from 70% to 90% of the melt value. By knowing the 100% value beforehand, you are in a position of strength to evaluate offers and ensure you are getting a fair price.