Spot price is the market quote for one troy ounce of pure gold. Melt value applies that spot price to the actual gold content of your item. A dealer offer is usually melt value minus spread, fees, and margin.
Spot price is not your item price
Spot price refers to pure metal quoted per troy ounce. Jewelry, scrap, and coins have different weights, purities, and transaction costs.
A 14K ring is not worth the full spot price for its total weight because only about 58.33% of its weight is gold.
Melt value is the metal baseline
Melt value answers one question: what is the raw metal content worth at spot?
It is useful because it gives sellers a baseline before comparing offers.
Premiums and discounts
Bullion coins can trade above spot because of minting, demand, and retail spread.
Scrap jewelry often trades below melt because buyers need margin and may pay refining or assay costs.
Common questions
Why is a gold buyer offering less than melt value?
Buyers account for testing, refining, market movement, overhead, and profit. The more competitive and verifiable the lot, the closer offers may get to melt.
Can coins be worth more than melt?
Yes. Bullion coins often carry premiums, and collectible coins can have numismatic value well above metal content.