Gold Industry Advises on Minimizing Melt Loss Maximizing Value

Melting gold for recycling, redesigning jewelry, or extracting precious metal from scrap involves careful consideration of potential losses. This process, while essential for gold's rebirth, inevitably leads to some material loss. Understanding the factors affecting this loss and implementing best practices can help preserve maximum value.

At its core, gold melting involves heating the metal to its melting point of 1,064°C (1,947°F), transforming it into a liquid state. This molten gold can then be cast into new forms or alloyed with other metals. The process serves primarily to recycle or purify gold, particularly in jewelry repair or when repurposing unwanted gold items. However, small but significant losses occur during melting, especially noticeable when processing large quantities.

Several interrelated factors contribute to gold loss during melting:

Pure gold (24K) experiences minimal loss during melting as it contains virtually no impurities to remove. Lower karat gold (14K, 18K) contains significant amounts of alloy metals like copper, silver, or nickel, requiring more extensive processing that leads to greater loss.

• 24K gold: Minimal loss (0.5-1%)
• 18K gold: Moderate loss (2-3%)
• 14K gold: Higher loss (3-5%)

When exposed to excessive heat or oxygen, gold can vaporize in small quantities. This "burn-off" becomes particularly noticeable during prolonged melting or when using improper equipment. Maintaining optimal temperature control and using inert atmospheres can minimize this loss.

Additional refining processes to achieve higher purity levels inevitably sacrifice some gold. Chemical and electrolytic refining methods typically result in 1-5% loss, depending on the technique and initial purity.

Improper handling during pouring or casting can lead to gold adhering to tools or spillage. Skilled technicians using proper equipment can reduce such losses to negligible levels.

Whenever possible, work with higher purity gold to reduce refining needs. Segregate different karat golds to avoid unnecessary alloy purification.

Use temperature-controlled furnaces designed for gold melting. Induction furnaces provide excellent control while minimizing oxidation. Consider inert gas environments for critical applications.

For significant quantities or high-value items, professional refiners with specialized equipment can achieve better recovery rates than amateur setups.

High-quality crucibles, molds, and casting equipment reduce material adhesion and spillage. Proper maintenance of tools also contributes to efficiency.

With gold prices around NZ$5,600-5,700 per ounce (June 2025), New Zealand's 15% Goods and Services Tax applies to melting services, affecting total processing costs.

At approximately $3,370 per ounce (June 2025), Texas benefits from no state income tax, potentially offering cost advantages for large-scale refining operations.

Gold melting typically results in 1-5% loss, depending on purity and processing methods. Through careful planning, proper equipment, and professional handling, these losses can be minimized to preserve maximum value. Understanding these factors enables informed decisions when recycling or repurposing gold items.