Selling Scrap Gold – Everything You Need to Know
12/09/2025Daniel Fisher
Scrap gold can be a hidden treasure
Many of us have unused or forgotten pieces of gold lying around at home. In many cases, it’s jewellery inherited from grandparents or family members that has lost its lustre over the years. Although old gold jewellery may look tarnished or outdated, it still holds significant market value.
With “cash for gold” adverts regularly appearing on television and online, the temptation is there to gather up that unused gold, put it in an envelope, and send it off for some quick money. But before you rush to sell, it’s vital to understand how the process works and how to avoid being underpaid for your gold.
This guide covers everything you need to know about selling scrap gold safely and for the best possible price.
1. Understand Market Prices
The value of gold is based on the spot price, which represents the market price per troy ounce at a given moment. (A troy ounce equals 31.1 grams, slightly more than a standard ounce). It’s important to understand two concepts;
- This is only a live benchmark price. A starting point from where gold items are priced. Generally speaking, dealers will pay a discount to this spot price to buy your scrap gold.
- This price is based on 24 karat gold. If your gold is a lower purity, the value will also be lower.
- If your gold is not coins or bars, most dealers will be slightly lower again to cover the cost of scraping the metal (possibly melting it down)
- If you are trying to sell gold coins are bars, then dealers are more likely to provide a price based on them being able to resell the item. The value of historical coins such as the Queen Victoria Gold Sovereign can be above the live spot price due to it’s collectability.
By checking the live gold price online before heading to a dealer, you’ll at least have a base price to calculate a ballpark figure for your gold. Without this knowledge, some dealers may try to undervalue your items.
2. Get Your Gold Valued
Before selling, determine whether your items have more value as scrap or in their current form.
- Coins and collectables – Some coins may carry a premium due to rarity or numismatic interest, making them worth far more than their gold weight. Read our ultimate guide to coin collecting.
- Jewellery – Designer or antique jewellery may be more valuable as a complete piece rather than melted down as scrap.
A reputable dealer or appraiser can give you guidance. Always get more than one opinion if you’re unsure.
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3. Timing Matters
Gold prices fluctuate daily and are influenced by global economic conditions, inflation, and demand from investors. If possible, avoid selling in a hurry – monitor trends and aim to sell when prices are higher.
You may also find our article on When to sell gold helpful.
4. Weigh Your Gold
Gold is weighed in troy ounces (not standard ounces). Having an idea of the weight before visiting a dealer will help you avoid being short-changed. Portable jewellery scales are widely available and inexpensive.
5. Check the Purity
Gold items come in different purities, measured in karats:
- 24k = 99.9% pure
- 18k = 75% pure
- 14k = 58.5% pure
- 10k = 41.7% pure
You’ll only be paid for the pure gold content – not the alloys mixed in. Be cautious if a dealer lumps all your items together, as they may calculate everything at the lowest purity.
6. Clean Your Gold
Although cleaning won’t change the value of the gold itself, it can improve its appearance and may make it easier to identify hallmarks or purity stamps.
- Use warm water, mild dish soap, and a soft brush.
- Avoid harsh chemicals that could damage delicate jewellery.
7. Choose a Reputable Dealer
Not all gold buyers are equal. To avoid scams:
- Shop around – Compare offers from multiple buyers.
- Postal services – If posting gold, use insured and tracked delivery. Photograph your items beforehand.
- Reputation – Look for established gold dealers with clear reviews and transparent terms.
- ID checks – Legitimate buyers will ask for proof of identity.
8. Alternatives to Selling Scrap Gold
Before committing, consider whether there may be better options:
- Refining into new jewellery – Some jewellers can melt your old gold and create a new piece.
- Investment options – Converting scrap gold into bullion bars or coins such as Gold Sovereigns or Gold Britannias can preserve long-term value.
- Gifting or inheritance – Sentimental pieces may be worth keeping in the family.
9. Tax Considerations
In the UK, selling scrap gold is generally not subject to Capital Gains Tax if you’re selling personal possessions with a lifespan of less than 50 years. However, higher-value foreign coins or bullion may be taxable. Some investment coins, like Gold Britannias and Sovereigns, are CGT-free for UK investors.
Learn more about tax implications for gold and silver.
Final thoughts – don’t rush into it
Selling scrap gold can be a great way to unlock hidden value from unused items. But to avoid being underpaid:
- Check the live gold price
- Verify purity and weight
- Get independent valuations
- Always deal with reputable buyers
Speak to our Experts
Our precious metals advisory team is here to help you make an informed decision. We can assess whether your items should be sold as scrap or preserved as collectables, and guide you through the process.
📞 Call us on 020 7060 9992 or contact us online today.
Frequently Asked Questions About Selling Scrap Gold
How much is scrap gold worth per gram in the UK?
Scrap gold is priced according to the current market spot price. In the UK, buyers typically quote prices per gram based on purity (9k, 14k, 18k, 22k, or 24k). To get an accurate figure, check the live gold price and multiply by the weight and purity of your gold.
Is it better to sell scrap gold or keep it?
It depends on your situation. If you need cash immediately, selling may be the best option. However, if you see gold as a long-term investment, keeping it or converting it into bullion coins such as Gold Sovereigns or Gold Britannias could offer better value and tax advantages.
Where is the best place to sell scrap gold in the UK?
The best place to sell scrap gold is through a reputable gold dealer or bullion specialist. Avoid selling to buyers with unclear pricing or poor reviews. Always compare offers and ensure the transaction is transparent.
How do I test the purity of scrap gold at home?
You can use a gold testing kit with acid solutions or an electronic tester. Another method is to check for hallmarks stamped on the item, which indicate purity. For the most reliable results, visit a trusted gold dealer.
Do I pay tax when I sell scrap gold in the UK?
In most cases, personal scrap gold sales under £6,000 are not subject to Capital Gains Tax (CGT). However, higher-value items could be taxable. UK legal tender coins such as Sovereigns and Britannias are CGT-free for UK investors.
Should I clean my scrap gold before selling?
Yes. While cleaning won’t change the gold’s intrinsic value, it helps identify hallmarks and improves appearance, making the selling process smoother.
Is posting gold to online buyers safe?
It can be safe if you use an insured, tracked postal service and choose a reputable dealer. Always photograph your items before sending and read the terms and conditions carefully.
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