Refinery Shipping 101: How to Send Scrap Gold Safely

At some point, every scrap gold buyer faces the same question: now what? You've accumulated a batch of scrap — broken chains, mismatched earrings, dental gold, a pile of 10K rings. It's sorted by karat, weighed, and logged. The next step is converting it into cash, and for most buyers, that means shipping it to a refinery.

Shipping precious metals through the mail requires more care than dropping a package at the post office. Get it right and the process is smooth, predictable, and profitable. Get it wrong and you risk losing your shipment — along with weeks or months of buying work.

Here's how to ship scrap gold to a refinery safely, from packaging to settlement.

Choosing a Refinery

Not all refineries are created equal. The two things that matter most are payout percentage and reputation.

Payout percentage is what the refinery pays you relative to the melt value of your gold. Most reputable refineries pay 95–98% of melt value. A refinery paying 96% on a $5,000 melt value lot pays you $4,800. A refinery paying 98% pays $4,900. That $100 difference adds up fast across multiple shipments.

Reputation matters because you're mailing thousands of dollars' worth of gold to a company and trusting them to weigh it, assay it, and pay you fairly. Research refineries before you send. Look for established companies with transparent processes, published payout rates, and verifiable customer reviews. Ask other scrap buyers in your network who they use and what their experience has been.

Some refineries also charge processing fees, assay fees, or minimum lot fees. Factor these into your comparison — a refinery with a higher payout percentage but a $50 processing fee might net you less on a small shipment than one with a slightly lower percentage and no fees.

For your first shipment, consider sending a smaller lot as a test. See how the process works, verify the settlement matches your expectations, and evaluate the turnaround time before committing larger shipments.

Sorting and Documenting Your Shipment

Before packaging, sort your scrap by karat. Bag each karat group separately and label them clearly — "14K, 85.3 grams" on each bag. This makes the refinery's job easier and reduces the chance of errors in their assessment.

Weigh each karat group on your calibrated scale and record the weights. Take photos of the sorted groups next to the scale reading. This creates your pre-shipment documentation — your record of exactly what you sent, in case there's a discrepancy with the refinery's settlement.

Create a detailed packing list with each karat group, weight, and your calculated melt value at the time of shipping. Keep a copy for yourself and include a copy in the package. Some refineries provide their own shipping forms — use them if available.

Packaging for Safety

Your packaging needs to accomplish two things: protect the contents and avoid attracting attention.

Inner packaging: Place sorted, labeled bags inside a sturdy box or padded envelope. Wrap individual bags so they don't shift or clink. Gold is heavy for its size — make sure the inner packaging can support the weight without tearing.

Outer packaging: Use a plain, unmarked box. No jewelry store logos. No "GOLD" written anywhere. No branding that suggests the contents are valuable. The package should look completely unremarkable.

Sealing: Seal the package thoroughly with packing tape. Some buyers add tamper-evident tape or security seals and photograph them before shipping, so any tampering in transit is visible.

Size: Use the smallest box that comfortably fits your contents. An oversized box with a small heavy item rattling around inside attracts attention and provides less protection.

Shipping and Insurance

Use USPS Registered Mail for high-value shipments. Registered Mail provides the highest level of security available through USPS — every handoff is documented, packages are kept in locked containers, and the chain of custody is tracked from origin to destination. It's slower than Priority Mail but significantly more secure.

Insure every shipment. USPS provides insurance up to certain limits. For shipments above those limits, third-party insurers like ParcelPro or Stonebridge specialize in precious metals shipping insurance. The cost is a small percentage of the insured value — far less than the cost of losing an uninsured shipment.

Never use the same shipping method for every package. Varying your carrier, timing, and drop-off location reduces predictability, which reduces risk.

Get tracking and signature confirmation. Track the package from drop-off to delivery. Require a signature on delivery so you have confirmation the refinery received it.

Do not tell anyone — postal workers, friends, social media — what's in the package. "I'm shipping some items to a business partner" is all anyone needs to know.

The Settlement Process

After the refinery receives your package, the typical process is:

1. Receiving and logging: The refinery logs your package and matches it to your account.
2. Weighing and sorting: They weigh your scrap, usually by karat group, and compare to your packing list.
3. Assaying: The gold is tested for exact purity. Some refineries use XRF. Others melt and assay. The assay determines the precise gold content.
4. Settlement offer: The refinery sends you a settlement statement showing their weights, purity readings, the spot price they're using, and your payout amount.
5. Review and approval: You review the settlement against your pre-shipment documentation. If everything aligns, you approve and receive payment. If there's a discrepancy, you contact the refinery to discuss.
6. Payment: Most refineries pay via check, wire transfer, or ACH. Turnaround from receiving to payment is typically one to three weeks, depending on the refinery.

Tracking Your Shipments

Keeping track of what you've sent, when, and what the settlement was helps you evaluate your refinery relationships over time. Are the weights consistently close to your pre-shipment numbers? Is the turnaround time reasonable? Is the payout percentage matching what was promised?

Nu Stack's Sell/Ship section (Stacker tier) lets you log shipments with tracking numbers, buyer details, and receipt photos. The Refinery Tracker records settlement amounts when they come back, so you can compare your expected payout to the actual payout across every shipment.

Ship Smart, Ship Safe

The refinery shipment is where your profit materializes. Everything before it — the sourcing, the testing, the negotiating, the buying — leads to this moment. Protect your shipments with proper packaging, adequate insurance, and thorough documentation. A few extra minutes of preparation on each shipment protects weeks of work.