Most people who sell gold have no idea how the number on the offer sheet is built. That gap is exactly why lowball offers work. If you have ever searched how much do gold buyers pay, or wondered how much is my gold worth, the answer is not a mystery or a mood. It is a formula.
Every gold selling price comes down to four levers: the spot price of gold, the purity of your piece, its weight, and the buyer’s margin. Once you know how each one works, no buyer can fudge the number. This guide covers all four, explains how buyers test gold, works through a simple example, and finishes with practical steps for getting a fair deal.
How Much Do Gold Buyers Pay? The Short Answer
A gold buyer’s offer equals the fine gold content of your item (karat purity × weight) × the live spot price × the buyer’s payout percentage.
In other words, what gold buyers pay depends on four inputs every legitimate buyer uses:
- Spot price: the live market price of pure gold
- Karat (purity): how much of your piece is actually gold
- Weight: measured in grams, after stones and non-gold parts are set aside
- Dealer margin: the percentage of melt value the buyer pays out
Brand names, sentimental value, and what you originally paid rarely move a scrap offer. The buyer is paying for the gold inside the piece, not the story around it.
Step 1: The Live Spot Price of Gold
The spot price is the global benchmark for pure gold, quoted in US dollars per troy ounce. It changes throughout the trading day as markets react to news, interest rates, and demand. Every buyer starts from this number, which is why you should too.
In Canada, the price moves for two reasons. Gold itself rises and falls, and so does the CAD/USD exchange rate. A weaker Canadian dollar raises the gold price in CAD even when gold is flat in US dollars. For that reason, always check a live CAD figure and not a US one.
Most offers are built per gram, so it helps to convert. One troy ounce equals 31.1035 grams. Divide the ounce price by 31.1035, and you have the 24k gold price per gram. That is the baseline for the gold price per gram you should expect any buyer to reference before purity and margin are applied. For a reliable view of how the benchmark is set, the London Bullion Market Association publishes reference pricing information.
Step 2: Purity and How Karat Decides Most of Your Value
Purity is the biggest single lever. Gold karat measures how much of a piece is pure gold, out of 24 parts. Pure gold, 24K, is about 99.9% gold. It is soft, so jewellery is usually mixed with other metals such as copper, silver or zinc. Those alloy metals have almost no melt value, so a lower karat piece is worth less per gram.
Understanding gold purity and karat value takes the guesswork out of any offer. Here is the reference table:
| Karat | Purity (fineness) | Fine gold content | Typical use |
| 24K | 999 | 99.9% | Bullion bars and coins |
| 22K | 917 | 91.7% | Coins, some imported jewellery |
| 18K | 750 | 75.0% | Fine jewellery |
| 14K | 585 | 58.5% | Everyday jewellery |
| 10K | 417 | 41.7% | Budget jewellery; Canada’s minimum legal gold standard |
Most pieces carry a hallmark stamp, such as 14K or 585. Buyers still test, because stamps can be worn, misapplied, or faked. A stamp tells the buyer where to start. A test tells them what is true.
Step 3: Weight and the Unit Tricks to Watch
Weight is a quiet place where sellers lose money, usually through units.
Troy ounce versus regular ounce. Gold is priced in troy ounces (31.1035 g), while a regular avoirdupois ounce is about 28.35 g. Mixing them up is roughly a 10% error. If a buyer quotes in “ounces,” confirm which kind.
Grams versus pennyweight (DWT). Some buyers quote in pennyweights, where one DWT is about 1.555 g. The unit is traditional and legitimate, but it can make it hard to compare offers. Ask for the quote per gram so you can line buyers up fairly.
Stones, clasps and settings. Only gold content is paid. Gemstones, glue, steel springs and non-gold clasps are deducted from the weighed total. Ask to see the net gold weight, not just the gross figure.
Step 4: The Buyer’s Margin and Why It Exists
This is the number sellers distrust most, mainly because nobody explains it.
The payout percentage is the share of your item’s melt value that the buyer offers you. If your piece has a melt value of $500 and the buyer pays 80%, your offer is $400.
A margin exists because buying gold is not free. Buyers pay for assay equipment, refining or shipping costs, staff, insurance, and the risk that the gold price drops before they resell. A buyer paying 100% of melt would be working for nothing, so be wary of anyone who claims to.
Payout levels vary by buyer type. These ranges are commonly quoted as a general guide and shift with the market, volume, and the item:
| Buyer type | Typical payout (% of melt value) |
| Pawn shops | Roughly 50% to 70% |
| Jewellery stores and general dealers | Roughly 65% to 80% |
| Specialist gold and bullion buyers | Roughly 80% to 95% |
Treat these as ballparks, not promises. What matters is that any buyer can tell you the exact percentage they are using.
How Buyers Test Your Gold
Many sites name the tests but never explain them. Here is what each one does.
Acid test. A small scratch is made on a testing stone and treated with acids of known strength. The reaction shows the approximate karat. It is cheap and common, and slightly destructive, though the mark is tiny.
Electronic or XRF analyser. An X-ray fluorescence analyzer reads the exact metal composition without damaging the piece. It is more accurate than acid, especially for mixed or plated items, and is common with larger or more professional buyers.
What an honest test looks like. The test happens in front of you. The weight and karat are shown openly on a scale or screen, and the buyer explains the result. If your gold disappears into a back room, that is worth questioning.
Working It Out Yourself: A Simple Example
Here is the whole formula, end to end, for 10 g of 14K gold jewelry.
- Fine gold content: 10 g × 0.585 = 5.85 g of pure gold
- Melt value: 5.85 g × the spot price per gram
- Offer: melt value × the buyer’s payout percentage
Say, purely for illustration, that spot gold is $100 per gram in CAD. The melt value is 5.85 × $100 = $585. At an 80% payout, the offer is $468.
These figures are illustrative only and not a current price. Real numbers move with the live market, so plug in today’s rate. A scrap gold calculator or gold value calculator can do this in seconds, and it is the quickest way to estimate how much your gold is worth before you speak to anyone. Comparing the result with current scrap gold prices shows you whether an offer is in a sensible range.
How to Sell Gold for the Best Price
If you are wondering how to sell gold for the best price, it comes down to preparation and comparison. Whether you search for where to sell gold or a gold buyer near you, the same steps apply to any buyer.
- Check the live spot price before you go anywhere
- Know your karat and rough weight in advance
- Get more than one offer, and ask each buyer to show the spot price and payout percentage they are using
- Separate collectible or designer pieces from scrap. They may be worth more than melt value
- Watch for red flags: pressure to decide now, refusal to test openly, quotes in odd units, or lumping mixed karats together
Conclusion
Know the formula, and you control the conversation. Work out your melt value first, then choose a buyer who shows their numbers openly and tests your gold in front of you. This article is general information and not financial advice.
Frequently Asked Questions About Selling Gold
It varies by buyer type, but most pay somewhere between half and the mid-nineties as a percentage of melt value. Pawn shops tend to sit at the low end and specialist gold buyers at the high end. Ask for the exact percentage so you can compare offers.
Multiply the live spot price per gram by your karat purity (for example, 0.585 for 14K). That gives melt value per gram. A buyer will then pay a percentage of it. Because prices move daily, always use a live figure.
Look for a hallmark such as 10K, 14K, 18K, or numbers like 417, 585, and 750. A buyer can confirm it with an acid or XRF test. If there is no stamp, ask for a test in front of you.
No. Only the gold content is paid. Gemstones, non-gold clasps and other parts are removed from the weighed total, so ask to see the net gold weight.
Spot price is for pure gold in bulk. Buyers cover assay, refining, overhead, and price risk, so they pay a percentage of melt value. That margin is normal as long as it is disclosed.
Check the live price, know your karat and weight, and collect several offers. Ask each buyer for their spot price and payout percentage, and avoid anyone who pressures you.