1. What is Gold Scrap Value?

The gold scrap value represents the actual monetary worth of gold items when accounting for purity, weight, current market price, and refining recovery rates. It's what refiners typically pay for gold scrap.

2. How Does the Calculator Work?

The calculator uses the gold scrap value formula:

Where:

• \( Weight \) — Weight in troy ounces (oz)
• \( Purity \) — Gold purity as decimal (e.g., 0.999 for 99.9%)
• \( Spot \) — Current gold spot price in USD/oz
• \( Recovery\ Rate \) — Refining recovery percentage as decimal (typically 0.95-0.99)

Explanation: The formula accounts for the actual recoverable gold content after refining losses.

3. Importance of Recovery Rate

Details: Recovery rate is crucial as no refining process recovers 100% of gold. Typical rates are 98-99% for high purity gold and lower for mixed materials.

4. Using the Calculator

Tips: Enter weight in troy ounces, purity as decimal (e.g., 0.585 for 14k gold), current spot price, and expected recovery rate (default is 0.98).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between troy ounce and regular ounce?
A: Troy ounce (31.1g) is the standard for precious metals, about 10% heavier than avoirdupois ounce (28.35g).

Q2: How do I determine gold purity?
A: Karat marks indicate purity (e.g., 24k=0.999, 18k=0.750, 14k=0.585). For unmarked items, professional testing is needed.

Q3: Where can I find current spot price?
A: Check financial news sites, commodity exchanges, or gold dealer websites for live spot prices.

Q4: Why is recovery rate important?
A: It accounts for inevitable small losses during refining. Higher purity gold typically has higher recovery rates.

Q5: Do all refiners use the same recovery rate?
A: Rates vary by refiner and material type. Always confirm rates before sending scrap for processing.