Broken Gold
Also: Scrap Gold, Junk Gold, Melt Gold
Broken gold denotes damaged, deformed, or incomplete gold items that no longer serve as jewellery or a functional object and are primarily destined for the melting 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 melting 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. Collector's pieces, rare coins, or objects of historical value should be appraised by a specialist before melting. Typical broken gold, on the other hand, includes:
- Damaged or old gold jewellery without collector value (rings, chains, pendants, brooches)
- Dental gold (crowns, bridges, inlays) from dental alloys with a typical 585–750 fineness
- Individual parts and fragments — broken clasps, spring rings, loose granules
- Raw gold and nuggets from private sources
- Gilded objects with a sufficiently thick gold layer (rarely worthwhile)
Determining Fineness — Reading Hallmarks
The fineness of a gold item is stamped in the hallmark. Common stamps in Europe are:
| Hallmark | Carat | Fineness | Fine Gold Share |
|---|---|---|---|
| 999 | 24 ct | 99.9 % | almost pure gold |
| 750 | 18 ct | 75.0 % | 3/4 gold |
| 585 | 14 ct | 58.5 % | slightly more than ½ |
| 375 | 9 ct | 37.5 % | just under 2/5 |
| 333 | 8 ct | 33.3 % | 1/3 gold |
If a hallmark is missing — for example on very old pieces or jewellery made abroad — the fineness can be determined by a streak test, an acid test, or an 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 limit of the broken gold's value — that is, what the contained fine gold would be worth on the spot market. The calculation is simple:
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 can determine this value to the second based on the current market price. The result serves as a basis for negotiation with buyers.
Purchasing — What Dealers Pay
No buyer pays the full melt value: melting, refining, analysis, and margin are deducted. The so-called buying factor indicates what percentage of the melt value the buyer pays out. Common market ranges:
| Type of Provider | Buying Factor (typical) |
|---|---|
| Specialised online buyer | 90 – 97 % |
| Local gold buyer / jeweller | 75 – 92 % |
| Pawnshop | 50 – 75 % |
| Refinery (direct, from ~50 g) | 95 – 99 % |
With the buying price calculator you can check whether a specific offer is fair to market. For larger quantities, the direct route to the refinery is worthwhile, which melts down broken gold, analyses it, and reimburses the 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 an XRF analysis, the value can hardly be estimated reliably. The dental gold calculator provides orientation once the approximate gold share is known.
Tax Notes
In Malta, gains from the private sale of broken gold are generally not taxed: Malta levies no capital gains tax on the disposal of movable private property such as bullion, coins, or scrap. (In Germany, by contrast, a one-year speculative holding period under § 23 EStG applies — this does not apply in Malta.) This is not tax or investment advice — in case of doubt, please consult a qualified adviser.
When selling for cash, dealers in Malta are subject to anti-money-laundering rules and may require identification for larger transactions.
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 the annually available gold comes from secondary sources — including jewellery, electronics, and dental gold. Melting down scrap gold requires only a fraction of the energy needed for primary mining 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 no longer has aesthetic value, but a clearly measurable material value. Read the hallmark, calculate the melt value, compare offers — anyone who masters these three steps achieves a fair price on sale. The melt value calculator and the buying price calculator provide the necessary basis for this.