The Gold Melt Value Formula
Every gold transaction at a pawn shop starts with this calculation:
MELT VALUE FORMULA
Weight (grams) × Purity % × Spot Price ($/gram) = Melt Value
The pawn shop then pays 50–80% of this melt value.
The spot price is the current market price for pure (24K) gold, quoted per troy ounce. To convert to grams: divide by 31.1035. As of early 2026, gold spot is approximately $4,490 per troy ounce (~$144 per gram). Check the live price on Kitco before visiting.
Gold Purity by Karat
| KARAT | PURITY | HALLMARK | MELT VALUE / GRAM* | PAWN SHOP PAYS* |
|---|---|---|---|---|
| 10K | 41.7% | 417 | ~$60 | $30–$48 |
| 14K | 58.3% | 585 | ~$84 | $42–$67 |
| 18K | 75.0% | 750 | ~$108 | $54–$86 |
| 24K | 99.9% | 999 | ~$144 | $72–$115 |
*Based on approximate $4,490/oz ($144/gram) gold spot price. Values fluctuate — check Kitco for today's price.
Worked Example: Calculating Your Gold's Value
EXAMPLE CALCULATION
Item: 14K gold chain, 15 grams
Step 1 — Melt value: 15g × 0.583 × $144/g = $1,259
Step 2 — Pawn shop range (50–80%): $630–$1,007
Realistic offer: $750–$900 at a competitive shop
If you're offered less than $630, you're below 50% — get a second quote.
Why Pawn Shops Don't Pay Full Melt Value
Pawn shops must cover real costs between buying your gold and converting it to cash:
- Refining fees: Scrap gold must be sent to a refiner to be melted, purified, and assayed. Refiners charge 2–5% of the melt value.
- Testing and labor: The pawnbroker spends time testing purity (acid test or XRF scanner), weighing, and processing paperwork.
- Spot price risk: Gold prices fluctuate. If the shop buys today and the price drops before they refine or resell, they absorb the loss.
- Operating costs: Rent, insurance, staff, and compliance costs are factored into every transaction.
The gap between melt value and pawn offer is not arbitrary — it's the cost of doing business. Shops in competitive markets with high volume can afford to offer higher percentages because they process more gold.
Pawn Shops vs. Other Gold Buyers
| BUYER TYPE | TYPICAL PAYOUT | SPEED | BEST FOR |
|---|---|---|---|
| Pawn shop | 50–80% of melt | Same day cash | Immediate cash needs |
| Dedicated gold buyer | 70–90% of melt | Same day | Higher payout, in-person |
| Online refiner | 80–95% of melt | 5–10 business days | Maximum value, can wait |
| "We Buy Gold" storefront | 40–65% of melt | Same day | Convenience only |
What Types of Gold Do Pawn Shops Accept?
- Solid gold jewelry (rings, chains, bracelets, earrings) — the most common; any condition accepted including broken pieces
- Gold coins and bullion (American Eagles, Krugerrands, bars) — priced near spot; see our coin buyers category
- Dental gold (crowns, bridges) — typically 10K–18K; accepted by most shops
- Gold watches — valued for both metal content and watch value; see our luxury goods category
- Gold-filled (GF) — minimal gold content; expect very low offers
- Gold-plated (GP) — essentially no gold content; most shops decline
How to Get the Best Price for Your Gold
- Check the spot price on Kitco right before your visit. Know the per-gram price for your karat.
- Weigh your gold at home on a kitchen scale (grams). This lets you calculate your own melt value estimate. Use an online gold melt value calculator for precision.
- Separate by karat. Don't bring a mixed bag. Sort 10K, 14K, and 18K pieces separately — this speeds up the appraisal and signals you know what you have.
- Get quotes from at least 2 shops. Use Pawn Spots to find gold buyers near you. Quotes can vary 20%+ for the same gold.
- Sell during price peaks. If you're not in a rush, check gold's weekly trend. Selling on a high day can net you 3–5% more.
- Sell, don't pawn. If you don't need the gold back, selling always pays more. See our pawn vs. sell guide.
For more strategies that apply to all items, read 12 negotiation tips for pawn shops.
Frequently Asked Questions
How much do pawn shops pay for 14K gold per gram?
Typically $42–$67 per gram (50–80% of ~$84 melt value). Competitive urban shops pay toward the higher end. Always check the live spot price on Kitco before visiting — gold prices change daily.
Do pawn shops pay spot price for gold?
No — they pay 50–80% of melt value (which is derived from the spot price). The gap covers refining fees, testing, labor, and profit margin. Online refiners pay closer to spot (80–95%) but require shipping and waiting.
Is it better to sell gold to a pawn shop or a gold buyer?
Dedicated gold buyers and online refiners often pay more (70–95% of melt). Pawn shops pay less (50–80%) but give you same-day cash with no shipping or waiting. If speed matters, pawn shops win. If maximizing dollars matters and you can wait, an online refiner pays more.
How do I know what karat my gold is?
Look for stamps: 10K/417, 14K/585, 18K/750, 24K/999. Check inside rings, on clasps, and on the backs of earrings. If no stamp is visible, the pawn shop will test it with an acid test or electronic tester at no charge.
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