Course Content
Precious Metals Foundations
Learn the core basics of the precious metals industry, including metals, products, pricing, and how the market works.
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Types of Precious Metals
Spot Price and Market Basics
Common Products for Precious Metals Dealers
What Is Hedging?
Karats
Industry Terminology You Must Know
Valuation & Authentication
Learn how to correctly value and verify precious metals using real-world methods and tools.
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Calculating Melt Value
Understanding Premiums and Spreads
Basic Testing Methods
Sigma and XRF Testing
Spotting Fakes and Red Flags
Negotiation & Sales
Develop the skills to present offers, handle objections, and close deals with confidence in real-world situations.
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Understanding Your Customer
Presenting an Offer Clearly
Handling Price Objections
Building Trust Fast
Closing the Deal
Hedging Like a Pro
Communication
Calculating Melt Value Understanding Premiums and Spreads Basic Testing Methods Sigma and XRF Testing Basics Spotting Fakes and Red Flags
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Communicating on the Phone Like a Pro
Qualifying Callers
Giving Quotes Over the Phone
Face-to-Face Customer Service
Explaining Testing and Pricing in Person
Handling Difficult Clients
Digital Communication
Compliance, Security & Professionalism
Understand legal basics, risk awareness, security practices, and the professional standards employers expect.
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Legal Basics and Recordkeeping
Fraud and Suspicious Behavior
Store Security Awareness
Ethics in the Precious Metals Industry
What Employers Actually Look For
Safes and Vaults
BONUS
EXTRA BONUS LESSONS
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Handling Coins
Protected: Precious Metals Career Accelerator

Calculating Melt Value

Precious Metals Foundations

The spot price of gold is the live market price of gold per troy ounce. When someone refers to the melt value of a gold necklace or a gold tooth, they are referring to the value of that item’s gold content as if it were being sold on the live spot market, expressed in dollars.

The Formula

MV = Purity × Weight × Spot Price
MV
Melt Value, expressed in dollars
Purity
The decimal expression of the item’s gold content (e.g., 0.583)
Weight
The weight of the item in troy ounces
Spot Price
The current market price of gold per troy ounce

In the examples below, a spot price of $5,000 per troy ounce is used for illustration purposes only. Always use the current live spot price when calculating actual melt values.

Examples

Example 1 — Gold Necklace

A gold necklace that is 0.583 pure weighs 2 troy ounces.

MV = 0.583 × 2 × $5,000 = $5,830

Example 2 — 18K Gold Ring

An 18K gold ring weighs 0.5 troy ounces.

MV = 0.750 × 0.5 × $5,000 = $1,875

Example 3 — 10K Gold Bracelet

A 10K gold bracelet weighs 1.25 troy ounces.

MV = 0.417 × 1.25 × $5,000 = $2,605

Example 4 — Gold Bar

A gold bar weighs 10 grams and is 0.9999 pure. Since the formula requires weight in troy ounces, first convert: 10 grams ÷ 31.1035 = 0.3215 troy ounces.

MV = 0.9999 × 0.3215 × $5,000 = $1,607.34

Example 5 — Gold Ingot

A gold ingot is 0.6543 pure and weighs 3 troy ounces.

MV = 0.6543 × 3 × $5,000 = $9,814.50

For quick melt value calculations using live spot prices, use ScrapIt! by Kitco.

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