1. What is Gold Melt Value?

The gold melt value represents the intrinsic value of gold based on its weight, purity, and the current spot price of gold. It's the theoretical value if the gold were to be melted down and sold at market prices.

2. How Does the Calculator Work?

The calculator uses the gold melt equation:

Where:

• \( Weight \) — Weight of gold in troy ounces (oz)
• \( Purity \) — Purity of gold as a decimal (e.g. 0.999 for 99.9% pure)
• \( GoldSpot \) — Current gold spot price in USD per troy ounce

Explanation: The equation calculates the actual gold content value by multiplying the total weight by the purity percentage, then multiplying by the current market price.

3. Importance of Melt Value Calculation

Details: Knowing the melt value is essential for investors, jewelers, and collectors to understand the intrinsic value of gold items, separate from any artistic or collectible value.

4. Using the Calculator

Tips: Enter weight in troy ounces, purity as a decimal (e.g. 0.750 for 18k gold), and current gold spot price. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between melt value and retail value?
A: Melt value is just the gold content value, while retail value includes craftsmanship, brand value, and other factors.

Q2: How do I find the current gold spot price?
A: Check financial news websites or precious metals exchanges for real-time gold prices.

Q3: What purity should I use for different karats?
A: 24k = 0.999, 22k = 0.916, 18k = 0.750, 14k = 0.585, 10k = 0.417.

Q4: Does this work for gold coins and bars?
A: Yes, as long as you know the exact weight and purity of the item.

Q5: Why use troy ounces instead of regular ounces?
A: Precious metals are traditionally measured in troy ounces (1 troy oz = 31.1035 grams).