Before you take your gold jewellery or bars to a dealer for buyback, spend a few minutes understanding three concepts — purity, weight, and today’s gold price — and you’ll be able to verify whether a quote is fair, without being short-changed.
What Do Fineness Marks Mean in Pure Gold Content?
The numbers stamped on gold jewellery indicate the pure-gold content as a parts-per-thousand figure. The higher the number, the more gold it contains:
| Fineness Mark | Pure Gold Content | Common Name |
|---|---|---|
| 9999 | 99.99% | Ultra-fine gold; common in investment bars |
| 999 | 99.9% | Solid gold, 24K |
| 916 | 91.6% | 22K |
| 750 | 75.0% | 18K |
| 585 | 58.5% | 14K |
K-gold is an alloy of gold and other metals. At buyback, only the pure-gold portion is priced — so at the same weight, 18K naturally fetches less than solid gold.
How Is the Buyback Price Calculated?
The basic formula is simple:
Buyback price = purity × weight × today’s gold price
For example (gold prices below are hypothetical, for illustration only): suppose today’s solid-gold buyback reference price is HK$600 per gram. A 10-gram 750 (18K) gold chain would have a gold-content value of approximately 0.75 × 10 × 600 = HK$4,500. If it were 999 solid gold at the same 10 grams, it would be about 0.999 × 10 × 600 ≈ HK$5,994.
Actual quotes will vary with daily gold-price fluctuations and the dealer’s deductions, but knowing this formula lets you instantly check whether a quote is suspiciously low.
Refining-Loss and Commission Traps
“Refining loss” (火耗) refers to the metal lost during the melting and purification process; some buyers deduct a percentage by weight. Other shops may trim the price under labels like “commission” or “handling fee.” These deductions aren’t inherently unreasonable — the problem is opacity. A dealer quotes one price up front, then chips away item by item at settlement, leaving you with far less than expected.
How to avoid these traps: ask whether the quoted price already includes all deductions (i.e. the net amount you’ll receive) and what the deduction rate is; compare offers from one or two other shops; and choose a dealer with transparent, posted pricing who is willing to put the calculation in writing.
Pre-Sale Self-Check List
- Clarify the pricing method: priced by weight or per piece? Are refining-loss or commission deductions applied? What is the net payout?
- Weigh in front of you: ask to have the item weighed on an electronic scale in your presence, and confirm the weight matches your expectation.
- Verify purity: a reputable shop will test fineness on the spot with professional equipment (such as an XRF spectrometer), not just by eye.
- Keep your receipt: the receipt should list weight, fineness, unit price, and total amount as your record.
If you have questions about the fineness or value of your gold, feel free to bring your items to our shop. We offer free consultations and testing, with transparent quotes explained line by line.
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