You typed in the weight, picked the carat, and a nice round figure popped up. Then you took the same ring to a dealer and got a lower number. It’s a bit of a letdown, and it’s natural to wonder whether someone’s being cheeky.
Usually nobody is. The two numbers are measuring different things, and once you see how, the gap makes a lot more sense. If you want to try an estimate yourself first, there’s a gold calculator nz page you can use, and this guide explains why the dealer’s figure will often come out a little lower.
What an Online Estimate Actually Shows
Most estimates show the value of the pure gold in your piece at the current market price. You enter the weight and purity, and the tool multiplies them. That figure is usually called the melt value.
It’s a useful number, but it isn’t a cheque. It tells you what the gold content is worth on paper, before anyone has tested, bought, or processed it. Think of it as the ceiling, not the payout.
The Dealer Has Costs You Don’t See
A dealer who buys your gold has to cover rent, staff, insurance, testing equipment, and the cost of getting the metal refined or resold. All of that comes out of the margin between what they pay you and what the gold is worth.
So the offer will normally be a percentage of the melt value, not all of it. That isn’t a trick. It’s how the business works, in the same way a currency exchange never gives you the headline rate. What matters is whether the percentage is fair.
The Price Moved Between Lunch and Now
Gold prices change constantly during the day. If you checked an estimate this morning and visited the dealer this afternoon, the price may have shifted. It might go up, or it might go down.
Dealers also don’t always use the price you saw online. They may work from a slightly different source, or update at certain intervals. A small difference here is normal, and it can work in your favour just as easily as against.
Purity: Your Stamp vs Their Test
The estimate depends on the purity you entered. If you typed 18 carat because that’s what you believed, but the piece actually tests lower, the value drops. Stamps can be wrong, worn off, or mean something different from what you assumed.
A dealer tests the metal and goes by the result, not the stamp. That’s the right way to do it. If their test shows 14 carat where you expected 18, the difference can change the offer a lot, so ask to see the result.
Weight: Not All Grams Are Gold
When you weigh a ring on kitchen scales, you’re weighing everything: the gold, any stones, the clasp, and any glue or solder. A calculator treats every gram as gold, unless you tell it otherwise.
A dealer subtracts the parts that aren’t gold, so the weight they use for pricing is often lower than yours. That’s one of the biggest reasons for a gap, especially with jewellery that has gemstones or lots of fittings.
Stones, Clasps and Solder
Gemstones add weight but usually little value, so they get taken out of the gold calculation. Small stones are often valued at almost nothing, and sometimes the dealer simply estimates their weight and deducts it.
Clasps, springs and findings can be made of other metals, and solder used in repairs isn’t always the same purity as the rest. These small parts add up. It’s worth asking how the dealer dealt with them, so the sum makes sense.
Plated and Filled Pieces
Some jewellery looks like gold but isn’t solid gold. Gold-plated and gold-filled items have only a thin layer over another metal, so they contain very little real gold.
An estimate can’t know this unless you tell it. If a piece tests as plated, a dealer will say so, and the offer will be a fraction of what you expected. Better to know before you go. Check for marks like “GP” or “GF” on the piece.
Units and Rounding Slip-Ups
Gold is sold in grams, ounces and sometimes pennyweights, and mixing them up causes plenty of confusion. A troy ounce isn’t the same as an everyday ounce, and a small unit error can skew the result.
Rounding matters too. A calculator might round the weight up, or use a purity of 0.75 where the real figure is slightly different. These tiny differences add up when the weight is large. It’s worth double-checking units before you rely on a number.
Bullion and Coins Work Differently
Investment coins and bars are valued differently from jewellery. Their purity is stamped and certain, so offers tend to sit closer to the current price. Some coins also carry a premium for being collectable.
If your estimate was for a coin, make sure you used the right inputs. A general jewellery estimate won’t capture a collector’s premium, and a dealer who doesn’t specialise in coins might only price the metal.
How Big a Gap Is Normal?
There’s no universal figure, because dealers’ costs and margins differ. A modest gap between a gold calculator nz estimate and the offer is normal. A big one, with no explanation, is worth questioning.
If you want a sanity check, ask what percentage of the melt value you’re being offered. A dealer who’s confident in their pricing will tell you. If they won’t say, you can reasonably look elsewhere.
Getting a Closer Estimate Yourself
You can narrow the gap by being more careful with the inputs. Weigh the piece accurately on a digital scale, remove anything that obviously isn’t gold, and look closely at the stamp. Use the right units.
Then treat the result as a range, not an exact figure. If you plan to sell, subtract a reasonable margin for the dealer’s costs. That gives you a more realistic picture of what to expect.
Questions to Ask the Dealer
Ask what weight and purity they used, and how they handled stones and fittings. Ask which gold price they applied, and what percentage of the metal value you’re being paid.
These questions are completely normal. A good dealer will answer them without fuss, and the answers explain the gap. If they’re vague, that tells you something about how much to trust the number.
When the Gap Is Too Big
Sometimes the difference really is too large. If the offer is far lower than the estimate and there’s no clear reason, such as stones or plating, it’s fair to push back or take your gold elsewhere.
You’re never obliged to sell. Walking away costs nothing, and a second opinion can show you whether the first was fair. Don’t feel pressured by “this offer expires today”. Genuine prices don’t usually vanish in an hour.
Comparing More Than One Quote
Different dealers pay different percentages, so it’s worth getting at least two offers. Take the same pieces to each, and ask the same questions, so you’re comparing like with like.
Write down the numbers, along with the weight and purity each dealer used. Often the highest offer isn’t the one with the best headline number, but the one that’s clearest about how it got there.
What to Remember
An online estimate and a dealer’s offer aren’t meant to match. One shows the metal’s value on paper, and the other is what a business will pay after testing, costs and risk. A gap is normal, and a large unexplained one is worth asking about.
If you’d like a starting point, try the gold calculator nz page, then visit TJGold and Diamond to see how a local dealer explains its pricing. Use the estimate as a guide, ask good questions, and you’ll know exactly where you stand.
Frequently Asked Questions
- Why is the dealer’s offer lower than my online estimate?
The estimate usually shows melt value, while the dealer pays a percentage after covering their costs and margin. Testing may also change the weight or purity used.
- Does the price of gold change during the day?
Yes. Gold trades constantly, so a figure you saw this morning may differ slightly from the one a dealer uses this afternoon.
- How do stones affect the weight used for pricing?
Stones add weight but not much gold, so dealers deduct their weight, or estimate it, which lowers the amount of metal being priced.
- Why might my piece test lower than the stamp says?
Stamps can be worn, wrong or misunderstood. Dealers test the metal itself and price it on the result, not the marking.
- What should I ask a dealer to understand the gap?
Ask what weight and purity they used, which gold price they applied, and what percentage of the metal value you’re being paid.
