How to Sell Gold Jewelry: Get the Best Price for Scrap

Why Selling Jewelry Is Different from Selling Bullion

Gold bullion sells at roughly spot price minus 1-3%. Gold jewelry sells at 20-90% of melt, depending on buyer type, purity, and condition. The gap reflects three realities about the jewelry market.

First, jewelry carries alloy content that bullion does not. A 14K gold chain is 58.3% gold, 41.7% other metals. A 10K ring is only 41.7% gold. Buyers test, calculate actual gold content, and pay accordingly. The stated karat determines the discount from spot.

Second, jewelry requires refining before the gold becomes fungible with bullion market supply. Refiners process scrap into .999 fine bars that enter the bullion supply chain. That refining costs money, which is extracted from the seller’s price rather than the buyer’s margin.

Third, jewelry buyers face adverse selection. A seller bringing in “14K gold” might have a piece that fails acid testing, contains solder at lower purity, or turns out to be gold-plated. Buyers protect themselves with wider spreads than bullion dealers need. The further down the chain you go (refiner to jeweler to pawn shop), the more defensive the pricing becomes.

The result: selling a 1 oz American Gold Eagle at a bullion dealer might yield $3,450 when spot is $3,500. Selling a 1 oz equivalent of 14K jewelry (1.71 oz gross weight at 14K) might yield $2,800 at a refiner, $2,100 at a jeweler, or $1,400 at a pawn shop. Same gold content, wildly different outcomes.

What Is Your Jewelry Actually Worth?

Start with the melt calculation. Every jewelry piece can be valued as gold content at current spot plus any demonstrable premium for brand, design, or stones. Our melt value calculator runs the numbers against live spot prices for any karat and weight.

Gold Content by Karat

Karat	Gold Purity	Multiplier vs Pure
24K	.999+	1.00
22K	.9167	0.9167
18K	.750	0.75
14K	.583	0.583
10K	.417	0.417
9K (UK, Australia)	.375	0.375

For unmarked pieces or conversions between karat and fineness, the karat calculator handles the math in both directions.

Melt Value Formula

Melt value equals gross weight in troy ounces, times karat multiplier, times current spot price.

A 20-gram 14K gold chain:

• 20 grams equals 0.643 troy ounces
• 14K multiplier: 0.583
• Pure gold content: 0.643 × 0.583 = 0.375 troy ounces
• At $3,500 spot: 0.375 × $3,500 = $1,312 melt value

This is the starting number. Your actual sale price will be some percentage of this melt value, depending on where you sell.

Stones, Brand, and Design Premiums

Diamonds, colored stones, and brand-name pieces can carry value beyond the gold melt. A Tiffany & Co. chain with no stones might sell at 2-3x melt value if sold through a luxury resale platform. A diamond engagement ring’s gold value is almost irrelevant; the stone drives the price, and gold-buying channels typically pay only the gold melt (discarding or returning stones).

For pieces with substantial stone or brand value, sell through specialized channels:

• Diamonds: I Do Now I Don’t, WorthyNow, Blue Nile, or local estate jewelers
• Luxury brands: The Real Real, 1stDibs, Fashionphile (for branded pieces)
• Antique and period pieces: Sotheby’s, Christie’s (for high-value), or specialist estate jewelers

The rest of this guide focuses on selling the gold content itself, the scenario where melt value is the ceiling.

Where to Sell: Real Payout Percentages

Refiners (70-90% of Melt)

Refiners are the top of the food chain. They accept scrap gold, melt and refine it into .999 fine bars, and sell those bars into the bullion market. Their margin is the difference between what they pay you and the refined gold price, minus refining costs and fees.

Best for: Larger quantities (usually 1+ oz of gold content), sellers willing to ship and wait, sellers comfortable with online transactions.

Typical process:

1. Request a shipping kit (FedEx or USPS insured)
2. Ship jewelry with insurance
3. Refiner receives, photographs, weighs, tests
4. Offer presented via email or phone
5. Accept or request return shipment
6. Payment via ACH, wire, or check within 1-5 business days

Reputable refiners:

• Midwest Refineries (Liberty Group): Long-established, 80-90% of melt on gold, transparent pricing, returns stones
• Manhattan Gold & Silver: NYC-based, dealer-facing but accepts individual sellers
• Garfield Refining: 95+ years in business, online gold buyer service pays 80-90% of melt on larger lots
• Specialty Metals Smelters & Refiners (SMSR): Industrial-focus, high payouts on bulk quantities

Refiners pay lower percentages on:

• Very small quantities (under 1 oz gold content)
• Mixed lots with uncertain purity
• Pieces that might contain fillers, solder, or plating
• 10K jewelry (higher refining cost per gram of recovered gold)

They pay higher percentages on:

• Larger quantities (5+ oz gold content often hits 90%+)
• Higher karat pieces (22K, 24K)
• Pure scrap (cut-off chains, broken unidentifiable pieces with no stones)

Online Jewelry Buyers (50-75% of Melt)

Companies like Cash for Gold USA, Express Gold Cash, CashforGoldMailer, and similar services operate between refiners and consumers. They take refiner pricing, mark it up, and cover marketing costs. Payouts typically run 50-75% of melt, though headline offers sometimes reach 80% for larger shipments.

Best for: Mid-size lots ($500-$5,000 in melt value), sellers who value convenience over maximum return.

Process: Same as refiners, with prepaid insured shipping kit, online appraisal, and offer. Most offer 10-30 day offer holds and return shipping if declined.

Reputable online buyers:

• Cash for Gold USA: Founded 2007, A+ BBB rating, transparent karat testing
• Express Gold Cash: 24-hour turnaround on payment, moderate payouts
• Gold Rush Online: Positive BBB record, competitive on small lots
• Reliable Gold: Established buyer, typical mid-tier payout

Red flags for online buyers:

• No published offer hold period
• No return shipping option if offer is declined
• Payment only by check (precludes chargeback)
• Recent name change or limited BBB history
• Aggressive time pressure (“offer expires in 24 hours”)

The scam pattern: buyer receives jewelry, offers a lowball price, buyer pressures seller to accept, seller rejects and buyer returns “the jewelry” (sometimes with pieces missing or substituted). Stick with buyers that have extensive BBB history and third-party reviews (Trustpilot, Google) spanning multiple years.

Local Jewelers (40-70% of Melt)

Independent jewelers often buy scrap gold as a sideline. They send accumulated scrap to refiners periodically, capturing the refiner’s payout minus their markup. Typical payouts range from 40-70% of melt depending on the jeweler’s customer base, local competition, and the specific piece.

Best for: Small lots ($100-$1,000), sellers who want immediate cash and face-to-face transactions, pieces with potential resale value the jeweler might pay a premium for.

Process: Walk in, hand over piece, wait for testing (5-15 minutes), receive offer, accept or decline. Payment typically in cash or check on the spot.

What to expect:

• Jeweler will test with acid or XRF gun
• Weigh on a calibrated scale (ask to see the weight)
• Calculate melt based on their “buy price per gram”
• Apply their margin (30-60% below melt)

Get multiple offers. Jeweler pricing varies widely even within a few blocks. A piece worth $1,000 melt might get $400 at one shop and $700 at another. Jewelers that specialize in estate jewelry or operate in affluent areas typically pay higher percentages than mall chain stores or strip mall walk-ins.

Chain stores (Zales, Kay, Jared) generally pay at the bottom of the jeweler range, often 30-50% of melt. Their business model depends on retail jewelry sales, not scrap buying.

Pawn Shops (20-50% of Melt)

Pawn shops buy gold jewelry, but their pricing reflects their capital costs, hold periods, and the possibility the seller returns to redeem a pawn loan. Outright buys (not pawns) typically pay 20-50% of melt.

Best for: Emergency cash, pieces the seller has already failed to sell elsewhere, or pawn loans where the seller intends to reclaim.

A $1,000 melt piece might yield $200-$500 at a pawn shop. Pawn loans against the same piece might offer $300-$600 with 10-25% monthly interest, and return of the piece on repayment.

Pawn shops are the last resort for gold jewelry sales by payout percentage. The tradeoff is speed and convenience: cash in hand immediately, no shipping, no waiting.

Documentation and Testing

Before shipping or walking into a buyer, document everything.

Pre-Sale Documentation

• Photograph each piece individually against a plain background
• Weigh on a jewelry scale (0.1 gram precision) and record
• Check for hallmarks: karat stamps (10K, 14K, 18K, 22K, 24K, 375, 585, 750, 917, 999), country of origin marks, maker’s marks
• Measure dimensions for pieces that might carry brand/antique value
• Keep receipts if you have them (establishes cost basis for tax purposes)

Testing Methods Buyers Use

Acid testing: Drop of nitric acid on a scratched sample. Different karats react differently. Cheap, destructive, generally accurate to within 2 karats.

Electronic testers: Conductivity-based devices. Quick, non-destructive, accurate to within 1 karat on most pieces. Models: Sigma Metalytics Precious Metal Verifier, Tri Electronics GXL-18 Gold Tester.

XRF analyzers: X-ray fluorescence guns. Most accurate, non-destructive, reads exact alloy composition. Standard at refineries and high-end jewelers. Cost: $15,000-40,000 per unit, explaining why many smaller buyers use acid or simple testers.

Stamp verification: Buyers check karat stamps and compare against test results. A piece stamped “14K” that tests at 10K indicates misrepresentation or an aftermarket stamp; buyers discount or reject.

You can test your own pieces before selling. Inexpensive acid test kits run $15-30 and include stone, acids for different karats, and instructions. This lets you verify stamps and catch counterfeits before bringing pieces to a buyer who might offer a lower price based on “actual” testing.

What to Bring or Include

For in-person sales: government ID (required by most jurisdictions under anti-money-laundering rules), the jewelry in its cleanest condition (gently wash with mild soap, avoid harsh cleaners), and any documentation of brand or provenance.

For mail-in sales: tracking and insurance for shipped value, inventory list with weights and photographs, a note with contact information, and the shipping kit’s return authorization number. Photograph the sealed package before handing to the carrier.

Shipping Safely for Mail-In Sales

The shipping step carries the highest risk in mail-in transactions. Gold jewelry is untraceable once out of your possession and before it arrives at the buyer. Protection depends on documentation and insurance.

Insurance and Tracking

• USPS Registered Mail with insurance: Up to $50,000 coverage, chain-of-custody tracking. Most secure option for valuable shipments.
• USPS Priority Mail Express with insurance: Up to $5,000 coverage, signature required.
• FedEx insured shipping: Most refiners and online buyers provide FedEx insured labels. Coverage typically matches declared value.
• UPS Express with insurance: Similar to FedEx.

The declared value must match the buyer’s payout estimate, not the jewelry’s retail value. Over-insurance creates claim disputes; under-insurance leaves you exposed if the package is lost.

Packaging

Double-box with padding. Use plain boxes, not jewelry-branded boxes. Label only with the buyer’s address and the shipper’s address, not with any indication of contents. The outer label should look like a generic shipment. Most shipping kits from buyers include pre-printed shipping labels with tracking numbers.

Documentation at Drop-Off

• Weigh the sealed package at home and note the weight
• Photograph the sealed package from multiple angles
• Get a receipt at the shipping counter (not just a drop-off)
• Retain the tracking number until payment clears

Tax Implications of Selling Gold Jewelry

Gains on gold jewelry sales are subject to the same 28% collectibles capital gains rate that applies to gold bullion. The IRS treats all gold (jewelry, bullion, collector coins) as collectibles for tax purposes.

However, most jewelry sales result in a loss rather than a gain. The retail jewelry markup is typically 100-400% over the gold content. A $5,000 retail wedding ring likely contains $800-1,200 in gold and might sell for $600-800 scrap value. That’s a $4,200-4,400 loss.

Personal-use loss is not deductible. Gold jewelry worn and eventually scrapped is considered a personal-use asset, and losses are not allowed as tax deductions. However, if the piece was purchased as an investment (clearly documented, not worn), the loss may be deductible as a capital loss, subject to the $3,000 annual limit against ordinary income.

For gains (pieces that appreciated above purchase price), the 28% collectibles rate applies, and the sale is reportable on Schedule D.

Dealers report larger transactions (typically $10,000+ cash or $600+ reportable scrap) on Form 1099-B. For reporting thresholds in detail, see our reporting requirements guide.

Selling Order: Highest Payout Strategy

For most sellers, the optimal sequence is:

1. Identify pieces with non-gold value: Branded, antique, or diamond-bearing pieces go to specialty resale channels, not scrap buyers. These can yield 2-10x melt value.

2. Calculate total melt for remaining pieces: If total gold content is 1+ oz, refiners become viable. Under 1 oz, online buyers or jewelers are more practical.

3. Request quotes from multiple channels: Three refiner quotes, two online buyers, two local jeweler walk-throughs. Same pieces, same day.

4. Negotiate where possible: Refiners and jewelers often increase initial offers by 5-15% when a seller mentions competing quotes or hesitates.

5. Sell in one lot to the best offer: Splitting across buyers rarely improves the outcome. A buyer with all your gold can offer better pricing than two buyers splitting the lot.

6. Document the sale: Keep the final invoice, testing report (if provided), and payment record. These establish cost basis for any future tax reporting and prove the transaction chain.

Frequently Asked Questions

How do I know if my gold jewelry is real?

Check for hallmark stamps (10K, 14K, 18K, 22K, 24K, 585, 750, 999). Genuine gold jewelry should have these or a country-of-origin mark. Magnet test: pure gold is not magnetic. Acid test kits confirm karat. If the piece is unmarked or the stamp looks inconsistent with the appearance, have it professionally tested before selling.

Why do jewelers pay so much less than jewelry retail price?

Retail jewelry markup is typically 100-400% over material cost. A ring that sold for $2,000 retail might contain $400-600 in gold and stones. Jewelers selling scrap pay melt value or less, not retail. The retail markup funds marketing, store rent, inventory carrying costs, and craft labor, none of which have value in the scrap market.

Should I remove stones before selling gold jewelry?

Usually not, though it depends on the buyer. Refiners and most online buyers return stones on request. If you have valuable diamonds or gems, they are worth more in a settings-removed sale through a diamond buyer than bundled with the gold scrap. For pieces with CZ, synthetic stones, or stones under 0.25 carats, removing them is rarely worth the jewelry store fee ($10-50 per stone).

Can I sell gold jewelry for tax-free cash?

No. Sales are reportable to the IRS regardless of how the buyer pays you. Dealers file 1099-B forms for transactions above reporting thresholds. Cash payment does not avoid tax obligations. Failing to report is tax fraud.

How long does a mail-in gold sale take?

From shipping to payment: 7-14 days typically. One to two days in transit, two to five days for buyer testing and offer presentation, one to five days for payment processing. Refiners processing large lots may take longer, up to 21 days for complex mixed-karat shipments requiring detailed sorting and testing.