Labs lose thousands of dollars a year selling scrap at low prices
Noble-metal scrap isn't waste — it's an asset. But if you don't know the real composition and weight of your alloy, the refiner has the edge and you lose money.
$2,400+
dollars a year the average lab loses by not sorting and classifying scrap before selling it
85-95%
of melt value is what an honest refiner pays. Below 80%, you're leaving money on the table
40%
of labs don't know the exact composition of the alloy they're selling as scrap
How it works
From scrap to real dollar value
The value of your alloy depends on three things: composition, weight, and the spot price of each metal at market.
1
Classify: high noble, noble, or base
High noble: 60%+ gold, platinum, or palladium (with at least 40% gold). Noble: 25%+ combined noble metals. Base: under 25% noble (Ni-Cr, Co-Cr). The class decides whether refining is worth it and how much the buyer will pay.
2
Weigh with precision
Use a precision scale (0.01g). Convert grams to pennyweights if the refiner works in troy: 1 pennyweight = 1.555 grams. The weight is solid alloy only — remove any residual ceramic, investment, and other contaminants before weighing.
3
Calculate the fine-metal content
If your alloy is 55% gold and weighs 31.1 grams (1 troy ounce), your fine-gold content is 17.1 grams. Multiply by the spot price of gold at that moment. That's the theoretical melt value. The refiner pays a percentage of it.
4
Get multiple quotes
Never sell to the first buyer. Request at least 3 quotes from different refiners. Ask: percentage on melt value, assay fees, shipping fees, settlement time. A refiner paying 90% with free assay can beat one paying 95% with a $50 assay fee per batch.
Common mistakes
Mistakes that cut your scrap value
01 Mixing alloy types before weighing
If you mix high noble with noble, the refiner assays the combined batch and the fine-metal percentage ends up lower than if you had sold the high noble on its own. Always sort by type and by known composition.
02 Not separating high noble from noble
A 75% gold alloy is worth significantly more per gram than a 30% palladium alloy. Mixing them waters down the value of the first. Label every bag with the trade name of the alloy and its composition.
03 Selling to the first buyer without comparing
Payout percentages run from 80% to 95% of melt value. On a 100-gram batch of high noble, the gap between 85% and 92% can be hundreds of dollars. Three quotes take 15 minutes and can recover hundreds.
04 Not knowing your alloy's composition
If you don't know whether your alloy is Argenco 65, Ney Special, or Spartan Plus, you can't calculate its real value. Check purchase invoices, spec sheets, or ask your distributor for a composition certificate. No composition, no leverage.
05 Ignoring palladium and platinum content
Many noble alloys hold palladium (spot ~$1,000/oz) or platinum (~$950/oz) alongside gold. If you only count the gold, you underestimate the real value of the batch. Palladium in particular has run at high prices in recent years.
Frequently asked questions
Alloy value: what you should know
Spot prices move in real time during market hours (Monday to Friday). In practice, the settlement price is locked on the day the refiner melts your batch. Some refiners let you pick the locking day; others use the receipt date. Ask before you ship.
Depends on volume and market volatility. Small batches carry proportionally larger shipping and assay costs. Stockpiling 50-100 grams is a fair breakeven point. But if prices are historically high, don't wait.
Options: (1) density assay (specific gravity) — compare against tables of known alloys, (2) X-ray fluorescence (XRF) — many refiners offer this free, (3) acid test — limited but distinguishes noble from non-noble, (4) contact the manufacturer with the alloy's trade name.
Most refiners accept batches from 10-20 grams for high-noble alloys. For noble alloys, the practical minimum is higher (50+ grams) because the value per gram is lower. Fixed assay and processing costs make very small batches unprofitable.
Not recommended. Mixing alloys of different composition produces an unknown-composition alloy, complicates assay, and can lower the payout percentage. Some metal combinations are also incompatible and can lose noble metal during melting.
Know the real value of your metal before you sell
TrazaLab helps you track, classify, and calculate the value of every alloy in your lab. Try it free.