Designer items or items which may be resold will typically earn a higher price.
The truth is, gross margins on scrap gold are typically small. So small, in fact, that if you get multiple offers, they will probably be within 10% to 15% of each other. If a buyer is paying you, for example, 60% to 70% of the melt value, the buyer’s gross revenue is only 30% to 40%. Which means their net revenue (what they keep after they deduct their expenses) is a 1/3 to 1/4 of that, or about 7% to 10% net. The gold market can move between 7% to 10% in a single day. So, as stated, gross margins are typically small.
Whereas, margins on new jewelry being sold in a retail jewelry store or website, are very different. Most retail businesses like clothing, electronics, or furniture companies, buy an item wholesale, let’s say for $1.00, and sell it at retail for $3.00, $4.00, or more, earning them 300% or 400% or greater gross revenue, rather than 30% to 40% on scrap jewelry. Again, scrap margins for the buyer can be quite small.
Using any online scrap gold calculator, you can calculate 100% of the melt value. Keep in mind that when gold is melted down, some small percentage of the gold and its various alloys are lost in the process. What companies offer will differ from dealer to dealer, based on their costs of doing business and the profit margin earned on the transaction.
