: Some jewelers use Bullion Exchanges which store tens of millions in gold in high-security vaults. 2. Scrap Gold from the Public
Jewelers source their gold through a mix of high-volume industrial suppliers and local, "over-the-counter" acquisitions. The process generally follows three main channels: 1. Refineries and Specialized Distributors where do jewelers buy gold
: Jewelers typically buy "scrap" (broken or unwanted jewelry) at a percentage below the current market "spot" price. : Some jewelers use Bullion Exchanges which store
: Instead of large bars, jewelers often buy "casting grain"—tiny, rice-sized pellets of gold. These are pre-alloyed into specific purities like 10K, 14K, or 18K, making them easy to melt down for custom molds. The process generally follows three main channels: 1
Most manufacturing jewelers buy gold directly from or specialized distributors.
: A jeweler may melt this scrap gold down in-house to create new pieces, or they may aggregate it and sell it to a refiner to be turned back into pure 24K gold or new casting grain.
: Buying from established refineries like Johnson Matthey or Handy & Harmon ensures the gold's purity is certified.