What Is Gold Melt Value and Why Does It Matter?
Melt value is what your gold jewellery would be worth if melted down to extract the pure gold and sold at today's spot price. It excludes making charges, GST, brand premiums, and any sentimental value.
Melt value matters when you're: selling gold (don't accept less than melt value minus refining costs), taking a gold loan (melt value is the baseline for LTV calculation), filing insurance claims (insurers pay based on intrinsic value, not purchase price), or valuing your estate.
Hallmarked gold with a BIS HUID provides certified purity. Non-hallmarked gold requires XRF assaying for accurate melt value determination. Acid tests are approximate and can undervalue your gold by 5–10%.
How Is Melt Value Calculated for Different Gold Purities?
The formula is consistent across purities: Melt Value = Net Weight × Purity × 24K Rate/gram
- 24K (99.9%): Weight × 0.999 × Rate ≈ Weight × Rate
- 22K (91.6%): Weight × 0.916 × Rate
- 20K (83.3%): Weight × 0.833 × Rate
- 18K (75.0%): Weight × 0.750 × Rate
The table above shows melt values for common weights at all purities using the current 24K rate.
How Do Indian Jewellers and Banks Assess Gold Value Differently?
Jeweller buyback: 95–98% of melt value minus making charges. Bank gold loan: Melt value × LTV (60–75%). Pawn shop: 50–70% of melt value.
The gap between your melt value (from this calculator) and what a lender offers is the lender's margin. Use our Pawn vs Melt Value Calculator for a detailed comparison.