Legal
How We Price Your Gold — Pricing Disclaimer
We believe a fair price starts with you understanding exactly how it's calculated. Here is the whole formula, in plain terms — no fine print that contradicts the headline.
What "spot price" means
The spot price is the live, worldwide market price for one troy ounce (about 31.1 grams) of pure, 24-karat gold. It changes every few seconds during market hours. Everyone — banks, refiners, and buyers — references the same spot price. We tie your offer to it so the number is transparent and verifiable.
What "up to 90% of spot" means
We pay up to 90% of the spot value of the actual pure-gold content of your item. Two words matter most:
- "Up to" — 90% is our maximum payout. The exact percentage depends on the item, the metal, and current refining costs.
- "Pure-gold content" — we pay for the gold that is actually in your item, not its total weight. Most jewelry is an alloy, not pure gold.
The remaining margin covers refining, assaying, insured shipping, secure handling, and our operating costs.
Why your item is not 100% gold
Karat tells you how much pure gold is in the alloy:
| Karat | Pure gold |
|---|---|
| 24k | 99.9% |
| 22k | 91.7% |
| 18k | 75.0% |
| 14k | 58.5% |
| 10k | 41.7% |
A 14k chain is only 58.5% gold — the rest is other metals. We pay for the gold, so purity is the single biggest factor in your payout.
The formula
Payout = (gross weight × purity %) × spot price per gram × payout rate (up to 90%)
We also exclude non-gold parts — gemstones, clasps, and settings are not weighed as gold.
Worked example
Say spot is about $133 per gram of pure gold (≈ $4,140/oz) and you have a 14k chain weighing 20 grams:
- Pure gold content: 20 g × 58.5% = 11.7 g of fine gold
- Spot value of that gold: 11.7 g × $133 = ~$1,556
- Payout at up to 90%: ~$1,400
Why you might expect more — and get less than you imagined
Many sellers assume: "20 grams of gold × spot price = my payout." That math treats the whole item as pure 24k gold, which it almost never is. In the example above:
- Imagined value (20 g treated as pure at spot): 20 × $133 = ~$2,660
- Actual fair payout: ~$1,400
That's roughly 65% of the imagined number — and the difference is not a hidden cut. It comes from honest, verifiable factors:
- Purity — your 14k item is only 58.5% gold (the largest factor).
- Non-gold parts — stones, clasps, and settings carry no gold value.
- Refining and processing — turning scrap jewelry into pure metal has a real cost.
- The daily spot price — gold moves every day, so the final number is set on the day of the transaction.
For lower-karat items (e.g., 10k) the effective percentage of the "gross weight at spot" figure is naturally lower; for higher-karat items (e.g., 22k–24k) it is higher. The payout rate against your item's true fine-gold value stays up to 90% in every case.
Preliminary estimates vs. the final offer
Any number from our online calculator, quiz, or a pre-shipment video call is a preliminary estimate based on what you tell us. The final offer is issued only after we physically inspect your item, confirm purity with XRF (X-ray fluorescence) and acid testing, and weigh it on a calibrated scale — in your presence in our store, or live on a video call. The final offer can be higher or lower than the estimate, and it is tied to the spot price at the time of the transaction.
No obligation
Every estimate and offer is free and carries no obligation. If you don't like your final offer, we return your items at no cost.
Questions about how your price was calculated? Call or text (305) 372-1585 — we'll walk you through the math.