Broken Gold
Also: Scrap gold, Melting gold
Broken gold refers to damaged, deformed or incomplete gold items that no longer serve as jewellery or usable objects 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 discarded dental gold crowns. What matters is not appearance but 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 with historical significance should be appraised by a specialist before melting. Typical broken gold, on the other hand, includes:
- Damaged or old gold jewellery without collector's value (rings, chains, pendants, brooches)
- Dental gold (crowns, bridges, inlays) made of 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 coating (rarely worthwhile)
Determining fineness — reading hallmarks
The fineness of a gold item is stamped in the hallmark. Common marks in Europe are:
| Mark | Carat | Fineness | Fine gold share |
|---|---|---|---|
| 999 | 24 kt | 99.9% | almost pure gold |
| 750 | 18 kt | 75.0% | 3/4 gold |
| 585 | 14 kt | 58.5% | just over ½ |
| 375 | 9 kt | 37.5% | just under 2/5 |
| 333 | 8 kt | 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 or intrinsic value) is the theoretical lower limit of the broken gold's worth — that is, what the fine gold it contains 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 determines this figure to the second 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: melting, refining, analysis and margin are deducted. The so-called purchase factor indicates what percentage of the melt value the buyer pays out. Common market ranges:
| Type of provider | Purchase factor (typical) |
|---|---|
| Specialised online buyer | 90 – 97% |
| Local gold buyer / jeweller | 75 – 92% |
| Pawnbroker | 50 – 75% |
| Refinery (direct, from ~50 g) | 95 – 99% |
With the purchase price calculator, you can check whether a specific offer is fair to the market. For larger quantities, going directly to the refinery pays off; it 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 reliably estimated. The dental gold calculator gives an orientation once the approximate gold share is known.
Tax notes (United Kingdom)
Gains from the sale of private broken gold may be subject to Capital Gains Tax (CGT) in the UK if they exceed the annual exempt amount. The gain is calculated as disposal proceeds minus acquisition cost. Note: gold bars and non-legal-tender items do not benefit from the CGT exemption reserved for UK legal-tender coins from The Royal Mint. There is no German-style one-year speculation period. This is not tax or investment advice — please consult a qualified tax adviser if in doubt.
When selling for cash, buyers dealing in high-value goods must comply with the UK Money Laundering Regulations, which require customer due diligence and identity verification.
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 gold available each year 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. Anyone selling broken gold thus contributes 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 purchase price calculator provide the necessary basis.