Broken Gold
Also: Scrap Gold, Old Gold, Melt Gold
Broken gold refers to damaged, deformed, or incomplete gold items that no longer serve as jewellery or functional objects and are primarily intended for the smelting process.
Broken gold is the collective term for gold items that have lost their original purpose — broken chains, bent rings, single earrings, damaged bracelets, or retired dental gold crowns. What matters is not the appearance, but the gold content: every piece of broken gold carries its fineness in the form of an alloy that, after smelting and refining, can be processed back into fine gold or a new alloy. The current gold price directly determines the achievable proceeds.
What Counts as Broken Gold?
Not every defective gold item is broken gold in the economic sense. Collectibles, rare coins, or objects of historical significance should be assessed by a specialist before smelting. Items that typically qualify as broken gold include:
- Damaged or old gold jewellery with no collector value (rings, chains, pendants, brooches)
- Dental gold (crowns, bridges, inlays) from dental alloys with a typical fineness of 585–750
- Individual parts and fragments — broken clasps, spring rings, loose granules
- Raw gold and nuggets from private sources
- Gilded objects with a sufficiently thick gold coating (rarely worthwhile)
Determining Fineness — Reading Hallmarks
The fineness of a gold piece is stamped in the hallmark. The following stamps are common in Germany and Europe:
| Hallmark | Karat | Fineness | Fine Gold Proportion |
|---|---|---|---|
| 999 | 24 kt | 99.9% | almost pure gold |
| 750 | 18 kt | 75.0% | 3/4 gold |
| 585 | 14 kt | 58.5% | slightly more than ½ |
| 375 | 9 kt | 37.5% | just under 2/5 |
| 333 | 8 kt | 33.3% | 1/3 gold |
If no hallmark is present — for example on very old pieces or jewellery made abroad — the fineness can be determined by a streak test, acid test, or X-ray fluorescence analysis (XRF). Reputable buyers carry out this analysis free of charge.
Calculating the Melt Value
The melt value (also: material value or intrinsic value) is the theoretical lower bound of a broken gold item's worth — i.e. what the contained fine gold would be worth on the spot market. The calculation is straightforward:
Melt Value = Gross Weight (g) × Fineness × Current Gold Price (€/g)
Example: 10 g ring, 585 gold, gold price €85/g
→ 10 × 0.585 × 85 = €497.25
The melt value calculator determines this value in real time based on the current market price. The result serves as a basis for negotiation with buyers.
Buying — What Dealers Pay
No buyer pays the full melt value: smelting, refining, analysis, and margin are deducted. The so-called buying factor indicates what percentage of the melt value the buyer pays out. Typical market ranges:
| Buyer Type | Buying Factor (typical) |
|---|---|
| Specialist online buyer | 90 – 97% |
| Local gold buyer / jeweller | 75 – 92% |
| Pawnshop | 50 – 75% |
| Refinery (direct, from ~50 g) | 95 – 99% |
The buying price calculator can be used to check whether a specific offer is in line with the market. For larger quantities, the direct route to a refinery is worthwhile — it smelts the broken gold, analyses it, and pays out proceeds based on the actual fineness.
Dental Gold as a Special Case
Dental gold often contains palladium, platinum, or silver alongside gold. Dental alloys are not standardised — the gold content can vary between 40 and 90%. Without XRF analysis, a reliable estimate of value is hardly possible. The dental gold calculator provides orientation once the approximate gold proportion is known.
Tax Notes
In Germany, gains from the sale of private broken gold are generally subject to the one-year speculative holding period (§ 23 EStG). If the gold is held for more than twelve months, the sale proceeds are generally tax-free. Below the tax-free allowance (currently €1,000 total gain per year from private disposal transactions), no tax liability arises. This is not tax or investment advice — please consult a tax adviser if in doubt.
For cash sales from €2,000 (precious metals), the identification requirement under anti-money laundering law applies; the buyer is obliged to record the identity card details and personal information.
Sustainability: Recycling Instead of New Mining
Broken gold is an important component of global gold recycling. According to the World Gold Council, around 25–30% of annually available gold comes from secondary sources — including jewellery, electronics, and dental gold. Smelting scrap gold requires only a fraction of the energy needed for primary extraction from ore, and avoids the use of chemicals such as cyanide. Those who sell broken gold thereby contribute to the circular economy.
In Brief
Broken gold has no aesthetic value, but a clearly measurable material value. Read the hallmark, calculate the melt value, compare offers — those who master these three steps will achieve a fair price when selling. The melt value calculator and buying price calculator provide the necessary foundation.