Understanding Gold Refining Charges: A Comprehensive Guide

Gold Refining Charges: Gold refining is the process of purifying raw or scrap gold—such as old jewelry, dental scraps, or industrial byproducts—into high-purity bars or coins, typically 99.9% or better.

This isn’t just about melting; it involves chemical treatments, assays (purity tests), and recovery of other metals like silver or platinum group metals (PGMs).

For individuals or businesses selling scrap, refiners charge fees to cover these costs, and understanding them is crucial to avoid losing value. In 2025, with gold spot prices hovering around $3,665 per troy ounce (about $118 per gram), these charges can eat into your payout significantly.

This guide breaks down what you need to know: typical charges, factors influencing them, the process, and tips to maximize returns. We’ll focus on per-gram equivalents for clarity, assuming a troy ounce is 31.1 grams.

What Are Gold Refining Charges and How Are They Calculated?

Refiners don’t charge a simple flat fee per gram of raw material; instead, they deduct costs from the recovered pure gold’s value. The payout formula is: Payout = (Recovered Gold Weight × Spot Price) × Accountability % – Fees.

Accountability (or Refining Yield): This is the percentage of assayed gold you’re paid on, often 95-99%. A 98% accountability means if 10 grams of pure gold is recovered, you’re credited for 9.8 grams. Lower rates (e.g., 90%) apply to complex scraps like e-waste.
Percentage Fees: Common for larger lots, these are 3-8% of the recovered gold’s value. For small lots (<20 oz or ~620 grams), expect 5-8%; larger volumes (20+ oz) drop to 3-5%. At $118/gram spot, a 5% fee equals about $5.90 per gram recovered.
Per-Ounce or Per-Gram Flat Fees: These range from $20-150 per troy ounce of raw material processed, translating to $0.64-4.82 per gram. For example:
- Fire assay (traditional melting and testing): $20-100/oz ($0.64-3.22/gram).
- Electrolytic or chemical methods (aqua regia): $30-150/oz ($0.96-4.82/gram).
- In India, some refiners like Kundan charge a flat Rs 50 (~$0.60 USD) per gram of raw gold, plus GST.
Assay Fees: Testing purity costs $10-50 per sample or $25 per element (gold, silver, etc.). XRF (non-destructive scanning) is faster but may add $7-30 per ounce.
Other Hidden Costs: Handling ($10-50 flat), shipping/insurance (your responsibility, often $20-100), and minimum lot fees ($100-500). For dental or jewelry scrap with stones, add $7 per gross ounce for removal, minimum $50.

In practice, for a 100-gram lot of 14k scrap (58.3% pure, yielding 58 grams pure gold), a 5% fee plus $25 assay might net you $6,500 payout from a $7,000 melt value—losing ~$500 total ($5/gram raw equivalent).

Factors Influencing Charges

No two quotes are identical; here’s what drives variations:

Factor	Impact on Fees	Example
Volume	Larger lots = lower % fees (economies of scale). Small lots (<100g) face high minimums.	<20 oz: 8%; 20+ oz: 5%.
Material Type	High-purity (e.g., dore bars) cheaper; low-grade (e-waste, plated) costlier due to extra steps.	Dental scrap: 3-5%; e-waste: 8-10%.
Purity/Complexity	Impure gold needs more chemicals/time; PGMs add recovery fees.	24k: $20/oz; 9k scrap: $100+/oz.
Location	US/Canada: $20-150/oz; India: Rs 50/gram (~$0.60). Shipping adds for international.	Kitco (Canada/US): Volume-based %.
Market Conditions	High gold prices ($3,665/oz in Sept 2025) amplify % fees’ impact.	Fees fixed, but payouts rise with spot.
Refiner Type	Toll (you keep title): 3-5%; outright buy: lower payout but no fees.	Collectors charge 8% to batch small lots.

Note: These aren’t “making charges” (jewelry fabrication, 3-25% or Rs 300-1,000/gram)—that’s for buying new gold items.

The Refining Process: Step-by-Step

Intake & Assay: Ship scrap; refiner weighs, samples, and tests (fire assay or XRF) for purity. Takes 1-7 days.
Melting & Separation: Material is melted; acids separate gold from impurities. Stones/diamonds removed if present.
Recovery: Pure gold precipitated, filtered, and melted into bars. Turnaround: 24 hours for simple karat gold; 5-7 days for complex.
Settlement: You get 90% advance on receipt day (at spot or average price), final payout in 2-4 weeks via check, wire, or metal return. Witness programs let you observe via video.

Environmental note: Reputable refiners (e.g., LBMA-certified) handle toxic chemicals responsibly, but unregulated ones risk pollution.

Choosing a Refiner and Maximizing Your Payout

Research Reputable Ones: Look for transparency like Cora Refining (discloses full schedules) or Kitco (trusted bullion dealer). Avoid “cash for gold” parties—they pay 20-50% below melt value.
Get Multiple Quotes: Use calculators from Mid-States or United PMR to estimate. Compare total costs, not just %.
Batch Shipments: Accumulate 10+ oz to cut fees; separate stones to avoid extra charges.
Timing: Sell when spot is high (e.g., post-2024 election surge to $3,500/oz). Lock prices via contracts.
Red Flags: Hidden fees, low accountability (<95%), or no assay reports. Always insure shipments.

Real-World Examples

Small Lot (100g 14k Scrap): Yields 58g pure. Spot value: $6,844. 5% fee + $25 assay = ~$6,300 payout ($63/gram raw).
Large Lot (1kg 18k): Yields 750g pure. Value: $88,500. 3% fee + $100 assays = ~$85,800 ($85.80/gram raw).
Dental Scrap: Often 3% + $200 upfront, netting 96% accountability for high-volume users.

In summary, expect $1-6 per gram in effective charges for most scrap, but shop smart—volume and transparency save big. With gold’s 2025 volatility (up 30% YTD), refining now could yield strong returns if fees are minimized. Consult a refiner directly for personalized quotes; tools like spot charts from APMEX help track values. (Word count: 798)