Jewelry: Gold Melt Value From Karat And Weight

Excel Formulas › Jewelry & Watch Repair

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Karat is a fraction: 24 is pure, so 14k gold is 14/24 or 58.3 percent gold by weight. Multiply the piece's weight by that fraction and you have grams of pure gold; multiply by the spot price per gram and you have melt value. Every scrap purchase, trade-in and insurance estimate starts from this number, and the buyer's offer is some percentage of it.


Quick formula: Weight times purity fraction times spot price:
=B2*C2/24*$B$6

A 12.4-gram 14k bracelet at $75 a gram spot: 12.4 × 14/24 = 7.233 g pure, times $75 = $542.50.

Functions used (tap for the full reference guide):

The example

Three pieces on the scale. The spot price lives in one cell below the table so it can be updated once a day and every row moves.

ABCDE
1PieceGramsKaratPure gramsMelt value
2Curb bracelet12.4147.233$542.50
3Wedding band8.0186.000$450.00
4Class ring3.2101.333$100.00
6Spot $/gram$75.00

The formula

Pure grams first — that number is useful on its own for refining — then dollars:

=B2*C2/24 then =D2*$B$6 // pure gold content, then melt value at spot

How it works

Three inputs, two multiplications:

  1. C2/24 converts karat to a purity fraction. 14/24 is 0.5833; 18/24 is 0.75; 10/24 is 0.4167.
  2. B2*C2/24 is grams of pure gold in the piece. A 12.4 g 14k bracelet holds 7.233 g of gold and 5.167 g of alloy.
  3. *$B$6 multiplies by the spot price per gram, held in one absolute-referenced cell. Spot is quoted per troy ounce; divide by 31.1035 to get per gram.
  4. Offer a percentage of that. Scrap buyers pay 70 to 90 percent of melt depending on volume and refining costs; the melt value is the anchor, not the offer.

Stones, clasps and steel springs are not gold. Weigh the piece with them removed, or subtract an estimate, before it goes in the grams column.

Try it: interactive demo

Interactive

Enter the weight, the karat stamp, and today's spot price per gram.

Variations

From spot per troy ounce

If you keep spot in dollars per ounce, divide by 31.1035 inside the formula.

=B2*C2/24*SpotPerOz/31.1035

Buy offer at a percentage of melt

Multiply by the percentage you pay. Keep it in its own cell so it can change with volume.

=ROUND(B2*C2/24*$B$6*PayPct,2)

Pitfalls & errors

The karat stamp is a claim, not a fact. Acid-test or XRF anything over a few grams before you pay on it; a plated piece stamped 14k has a melt value of roughly nothing.

Pennyweights (dwt) are still common in the trade: 1 dwt is 1.5552 g. If the scale reads dwt, convert in a helper column rather than in your head.

Do not use 14/24 as 0.58. The rounding error is 0.6 percent, which on a $5,000 buy is $30 — either given away or under-paid, and either way it is a number a customer will check.

Practice workbook

📊
Download the free Jewelry: Gold Melt Value From Karat And Weight practice workbook
Edit the yellow grams and karat cells and the spot price at the bottom; pure grams and melt value recalculate.

Frequently asked questions

Why is the spot price in a separate cell?
Because it changes every day and every row uses it. One cell with an absolute reference means one edit in the morning updates every quote on the sheet, and nobody has to remember which rows were priced yesterday.
Does this work for silver and platinum?
Same structure, different purity convention. Silver is stamped in parts per thousand (925 = 92.5 percent), so use B2*925/1000 instead of C2/24. Platinum is usually 950 or 900.

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Function references: PRODUCTROUND