When you have your own gold processed, how loss is calculated and how the material is accounted for are what matter most, and they're the clearest test of whether a workshop is professional and trustworthy. At Kam Yuen Gold, loss is agreed in advance, calculated transparently and checked with you in person. We separate recoverable leftover gold from genuine process loss and follow a standard method, so every gram of your gold can be traced.
Leftover gold is not loss
Many people treat leftover gold and process loss as the same thing. They're entirely different, and the distinction is the basis of all the accounting.
- Leftover gold: Material produced during processing that still holds its full gold value. It can be weighed and re-melted, and it belongs to you throughout.
- Loss: The tiny amount of gold that genuinely disappears through physical or chemical change and can't be recovered. It's a normal part of any process.
Where loss comes from, and what's left over, depends on the process:
- Melting: Loss comes from surface dirt and grease burning off at high temperature, oxidation of low-melting-point metals in solder, and tiny amounts of molten gold left on the crucible wall or splashed during melting. This stage produces no extra leftover material.
- Jewellery casting: The sprues and gates are cast as part of the gold tree; once cut off, they're complete, recoverable gold and don't count as loss. Loss occurs mainly during melting and pouring, as slight oxidation and residue on equipment.
- Wire drawing: The ends of the wire rod and any pieces that break off during drawing can all be re-melted, so they don't count as loss. Loss occurs mainly when the wire rod is cast; drawing itself loses very little.
All leftover gold is listed separately on your receipt, apart from the finished product and the loss, so you can see exactly where every part of your material went.
Three checks that keep the numbers clear
A standard checking routine is the key to protecting your gold. Every order at Kam Yuen Gold goes through these three checks, each one traceable and verifiable.
Check 1: Testing and registration on arrival
When your gold arrives, we carry out two checks on the spot:
- Purity is tested batch by batch with an XRF analyser to identify different materials accurately
- Each batch is weighed on precision electronic scales, with its weight and purity recorded
Once you've confirmed the figures in person, they go on the formal processing receipt as the baseline for everything that follows.
Check 2: Written agreement before work starts
Before work begins, two points are written into your order:
- The agreed loss rate range, with the standard for each process and each condition of material
- What happens to leftover gold: returned with your finished pieces, kept as credit for your next order, or handled another way
Everything is confirmed in writing, never verbally, which heads off disputes before they start.
Check 3: Reconciliation on delivery
When the work is finished, we check it with you on the spot:
- The finished product is re-tested and weighed
- Leftover gold is weighed and listed separately
- Everything is reconciled using one formula
Total incoming weight (or gold content) = finished weight (or gold content) + leftover weight (or gold content) + agreed loss
If the loss is within the agreed range, the order is complete and handed over.
How to keep loss down
Some process loss is unavoidable, but preparing your material well and planning the work sensibly can reduce it. Here's how you can help:
- Clean your gold first: Remove as much dirt, grease and dust as you can to reduce burn-off and slag.
- Remove non-gold parts: Take out gemstones, steel springs, cords and non-metal settings beforehand. Otherwise impurities get into the melt, create a lot of slag and increase loss.
- Separate by purity: Keep fine gold and karat gold apart, and have them processed separately, to avoid purity errors and the extra loss that mixing causes.
- Combine batches: Put gold of the same purity for the same process into one batch where possible, because every extra melt adds to the loss.
FAQ
Does a lower loss rate mean better workmanship?
Not necessarily. Loss depends heavily on the material you bring in. New, clean, high-purity gold usually loses little, while old jewellery with mixed purities, many solder joints and heavy dirt naturally loses more. What matters more than a low headline figure is that the loss standard is agreed in writing beforehand, checked item by item on delivery, and reported honestly.
Can I take the leftover gold home?
Yes, it belongs to you. Before work starts, agree whether you want it returned with your finished pieces or kept as credit against your next order. Either way, it's recorded on your receipt.
What if the actual loss exceeds the agreed range?
We go through the figures with you on the spot at delivery. If there's a discrepancy, it's handled strictly according to the written agreement made before work began. That's exactly why we put every loss standard in writing up front: it protects you and prevents disputes later.
Get a processing quote
Kam Yuen Gold is in Hung Hom, Hong Kong, and handles jewellery casting, gold powder, wire drawing and ingot casting for customer-supplied gold. Your gold and the finished pieces are weighed in front of you, and the processing fee and agreed loss are set out before work begins. To find out roughly how much loss to expect, message us on WhatsApp with the weight and purity of your gold and the process you have in mind.