Gold prices and old gold: why direction matters more than level

Recycled gold fell 6% in the second quarter of 2026, even though prices were far above last year. What that says about selling old gold, and how melt value is worked out.

Marcel Buth · Co-founder, IsItGOLD?

· 3 min read

Green line illustration of a nugget, a ring and a coin, with the words “Direction, not level” and the IsItGOLD? logo on a dark background

Gold is trading far above last year's level. You might expect that to bring a wave of old jewellery to buyers. The latest global figures say the opposite.

Less old gold, despite higher prices

According to the World Gold Council, 326.1 tonnes of gold were recycled worldwide in the second quarter of 2026. That is 6% less than a year earlier and 13% less than in the first quarter. Over the same period, the gold price was 37% higher than a year before.

Why direction beats level

The WGC's explanation: from the first to the second quarter, the average price fell by about 7% after a run of record highs. People who own old gold tended to hold rather than sell, and the WGC saw no widespread signs of distress selling. In its reading, short-term price moves matter more for recycling than the comparison with last year.

Not every region followed. Recycling in Europe rose 9% year on year and in the United States 5%, partly catching up after refinery capacity limits earlier in the year. India (down 17%) and China (down 15%) pulled the total down, in part because more old jewellery was traded in for new pieces, which does not count as recycling.

Where the price stands now

September brought another pullback. On 29 September 2026, gold traded at $4,162.84 per troy ounce, a day after a seven-week low. Silver stood at $61.05. Over the month, gold is down about 6%.

We report these numbers for one reason: they change what a piece of old gold is worth today. They say nothing about where the price goes next, and nothing here is advice on whether to buy, sell or hold.

How melt value follows from the price

Whatever the market does, the material value of a gold item comes from one calculation:

weight × fineness × spot price

  • Weight in grams, ideally from a scale that shows at least 0.1 g.
  • Fineness is the share of pure gold. A 585 stamp means 585 parts per thousand, about 14 karat. 750 is 18 karat, 375 is 9 karat.
  • Spot price per gram is the price per troy ounce divided by 31.1035.

At $4,162.84 per ounce, a gram of pure gold is worth about $133.84. For a 10 g ring:

  • stamped 585: 10 × 0.585 × $133.84 ≈ $783
  • stamped 750: ≈ $1,004
  • stamped 375: ≈ $502

A 6% move in the price shifts the 585 ring's melt value by roughly $47. That is the difference a seller notices, and it may help explain why many wait after a drop.

What the formula leaves out

Melt value is a starting point, not an offer. What a buyer pays depends on their own testing, refining costs and terms. Stones, workmanship, maker and age can add value that has nothing to do with the metal.

The formula also depends on the fineness being right. A stamp can be wrong or forged, and gold-plated or gold-filled pieces carry only a layer of gold over another metal. US rules treat calling such items simply "gold" as misleading. If a piece matters, have it tested independently.

IsItGOLD? uses machine vision to estimate the metal and its fineness and, with the weight you add, shows an estimated value based on today's spot price.

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