Bullion Scrap Melt Value Calculation
Determines the intrinsic scrap metal market value of scrap gold, coins, or jewelry based on live spot price per troy ounce and karat purity.
\[ V_{melt} = m_{total} \cdot \left(\frac{K}{24}\right) \cdot \left(\frac{P_{spot}}{31.1034768}\right) \]
Plain Text Formula:
Melt_Value = Total_Mass * (K / 24) * (Spot_Price_per_ozt / 31.1035)
📐 Variable Definitions & Parameters
| Symbol | Variable Name | Standard Unit | Physical Definition |
|---|---|---|---|
| \[ V_{melt} \] | Intrinsic Melt Value | USD ($) | Total spot bullion dollar value of the metal |
| \[ m_{total} \] | Gross Weight | grams (g) | Measured weight of the items on digital scales |
| \[ K \] | Alloy Karat | karat | Gold karat (e.g. 10K, 14K, 18K) |
| \[ P_{spot} \] | Gold Spot Price | $/oz t | Current COMEX / LBMA spot price per troy ounce |
💡 Worked Engineering Example
Problem Statement:
Calculate the scrap melt value of 28.0 g of 18K gold when spot gold is $2,700 / oz t.
Step-by-Step Solution:
- Calculate price per pure gram: $2,700 / 31.1035 = $86.806 / g
- Pure gold weight: 28.0 g * (18 / 24) = 21.0 g
- Melt value: 21.0 g * $86.806 = $1,822.93
🎯 Result: The intrinsic scrap melt value is $1,822.93.