Key takeaways
- Melt value = weight in grams × purity × today’s 24K price per gram.
- Buyers pay below melt to cover testing, refining and profit. Ask each buyer for their price per gram and karat.
- Sort pieces by karat before you go, and know the weight.
- A scale used to buy gold must be approved and inspected by Measurement Canada.
- Bring photo ID, keep the receipt, and report any gain on your tax return.
How much is my gold worth before I sell it?
Start with melt value, the value of the pure gold inside your piece:
Melt value = weight (g) × purity × 24K price per gram
| Karat | Common stamp | Purity |
|---|---|---|
| 24K | 999 | 99.9% |
| 22K | 916 | 91.6% |
| 21K | 875 | 87.5% |
| 18K | 750 | 75% |
| 14K | 585 or 583 | 58.5% |
| 10K | 417 | 41.7% |
Example (for example, at $150 a gram for 24K): a 20 g 22K bangle has 20 × 0.916 = 18.32 g of pure gold. Its melt value is 18.32 × $150 = $2,748.
Many families weigh in tola. One tola is 11.6638 g; see gold units explained.
Why do gold buyers pay less than melt value?
A buyer has to test your gold, often send it to a refiner, wait to be paid and still make a profit. Those costs come out of the price. That gap is the spread.
The spread is usually smallest for pure, recognised bullion such as a 1 oz Royal Canadian Mint coin, which a dealer can resell as it is. It is usually largest for mixed scrap jewellery, which has to be melted and refined.
The design and the making charge you paid at the jeweller are rarely paid back when you sell for scrap. That is why jewellery often sells for much less than its shop price. See jewellery vs investment gold.
How to compare offers: divide each offer by your melt value. An offer of $2,300 on a $2,748 melt value is about 84% of melt. This turns different quotes into one number you can compare.
Where can you sell gold in Canada?
- Bullion dealers: best for coins and bars. Some publish “we buy” prices online.
- Jewellers: may buy scrap or resell good pieces. Ask for a written per-gram price by karat.
- Refiners and scrap buyers: pay for gold content only.
- Pawnshops: fast cash, but compare their offer with melt value first.
- Mail-in buyers: check that they insure the parcel and that you can refuse the offer and get your gold back free.
- Private sale: can bring more for a nice piece, but meet safely and expect buyers to want proof it is real.
If you are travelling, prices in India, Dubai or Pakistan are quoted differently; see is gold cheaper in Dubai, India or Canada.
What should you do at the buyer’s counter?
- Sort by karat and weigh each group at home if you can.
- Watch the weighing. Measurement Canada says a scale used to weigh gold when buying it must be approved and inspected by Measurement Canada, built for precious metals, and accurate under the Weights and Measures Act. A scale marked “not legal for trade” cannot be used to buy gold.
- Ask how they test. Non-destructive testing (XRF) does not mark your piece. An acid test needs a small scratch. See how to tell if gold is real.
- Get the price per gram for each karat in writing before you agree, and check the total.
- Remove stones or ask how they are counted. Stones add weight but not gold.
- Bring photo ID. Dealers covered by FINTRAC must verify identity for certain transactions, and FINTRAC rules apply from $10,000.
- Keep the receipt for your taxes.
If you think a scale was wrong, raise it with the buyer first, then you can complain to Measurement Canada.
What mistakes cost sellers the most?
- Selling in a hurry. A quote that is good only “right now” is a pressure tactic. A fair buyer will give you a written price per gram.
- Accepting a single total. If a buyer gives one number for a mixed bag, you cannot tell what they paid per karat. Ask for the breakdown.
- Selling coins and bars as scrap. Recognised bullion coins and bars can usually be resold as they are, so they should get a better rate than broken jewellery.
- Forgetting stones and sentimental value. Diamonds are rarely paid for by scrap buyers. Family pieces cannot be bought back once melted, so decide before you go.
Do you pay tax when you sell gold?
If you sell for more than your cost, the gain is usually a capital gain, and half is taxable as of October 2026. Jewellery under the $1,000 rule often has nothing to report. Newcomers use the value on the day they became a resident as their cost. Read how gold is taxed in Canada and how much gold you can sell without reporting it.
RemitBee Gold, from our sponsor, plans to let you buy and sell pure 24K gold at the live market price with one 0.5% fee shown before you confirm. It is coming in early 2027; the waitlist is at gold.remitbee.com.
Before any visit, put your weight and karat into the gold value calculator and check today’s gold price by karat.