What Is Gold Refining and Why Is It Important?

Learn about the process of gold redefining, where old jewellery, scrap, and bullion are stripped back to their purest form, valued with precision, and reborn as tradable gold. 

Read on.

If you have ever sold gold jewellery, scrap, or bullion to any gold buyer in Brisbane, you must have thought, “What really happens with my gold? Does it get melted down? Is it resold as is? How do buyers obtain its real value?”

For many people, gold refining may sound complex, but it’s actually pretty simple and easy to understand. This guide explains, step by step, how refining works in Australia so you know exactly what happens to your gold and how its value is calculated.

Whether it’s scrap jewellery, nuggets, bullion, or industrial gold, understanding the gold extraction and refining process gives you confidence when selling your precious metals to a trusted gold buyer in Brisbane like Cash Your Gold.

What is gold refining?

Gold refining, in simplest terms, is the purification of gold from which unwanted components are removed to obtain a purified form that is mostly 99.9% (999) pure gold. Most of the precious jewellery that is made from gold is not pure gold. For instance, jewellery is combined with other metals, such as silver, to make it more solid and wearable.

Refining takes place when the gold cannot be resold in its original form. This gives the opportunity for the gold to become pure, tradable bullion that can be reused again in investment bars, coins, or industrial applications.

In Australia, gold refining must strictly follow set rules to ensure the process is conducted in a way that guarantees accuracy, transparency, and fair valuation.

What kind of gold can be refined?

Refiners of gold in Australia work with material that could be as varied as:

• Refining of scrap gold jewellery like broken chains, rings, and earrings

• Damaged or mixed gold coins and bars

• Natural nuggets of gold

• Dental gold

• Industrial gold scrap includes circuit boards and watch parts.

• Mixed metal items that include gold

Each type of gold is tested differently, but it consistently serves the same purpose: to accurately determine how much pure gold it contains.

How the Gold Refining Process Works

Step 1: Receipt and Evaluation of Materials

Thinking about how your gold is refined? When your gold reaches a refinery, it is received in a highly secure manner and well-documented. Each piece is catalogued to ensure nothing is misplaced, and the process is transparent throughout.

This first move protects both the seller and the refiner.

Step 2 – Testing and Weighing (Assay)

The real value of gold is determined during testing. This section answers questions like what the purity, karat and weight of gold are.
There are two primary methods of refining gold in Australia:

• XRF Testing: XRF tests are fast and non-invasive. It scans the metal and identifies exactly what it’s made of, including gold content and other metals combined. The method is best suited for fast and accurate assessments.

• Fire Assay: Fire assay is considered the most accurate method of testing. A small quantity is heated and processed to separate the precious metals. Fire assay is generally used when high-value or large consignments need to be tested, which requires a high degree of accuracy.

Step 3: Smelting and Purification

After testing, the gold is melted at very high temperatures in a process called smelting. In this gold purification process, the gold is heated to a very high temperature to remove any unwanted impurities. The molten gold then undergoes purification techniques, which include:

By the end of this stage, the gold obtained has investment-grade purity and is ready for casting into bars or bullion.

Step 4: Settlement & Payment

The final value after refinement is obtained from:

• The purity (fineness) of the gold

• The precisely refined weight

• The live market spot price

Reliable refineries also break it down clearly, with funds paid quickly, sometimes on the same day. This helps sell products at the best prices with no surprises.

At Cash Your Gold, we employ gold testing and refining techniques such as the Miller Process, which uses chlorine gas to remove impurities, and the Wohlwill Process, an electrolytic refining method that achieves purity up to 99.99%. This process at Cash Your Gold ensures you receive metals of the highest quality while reducing overhead costs.

How Gold Value is Calculated in Australia

The value of gold is calculated with the following formula:

Reputable gold refineries in Australia shed light on every step of the process, eliminating hidden charges such as retention, processing, or deduction charges.

Importance of Transparency in Gold Refining

Gold refining in Brisbane ultimately comes down to trust. When you’re selling gold in Australia, transparency is what protects the seller and gives confidence in the entire transaction. A reputable refiner or buyer will be open about every step of the process, from testing through to pricing and paperwork.

That means your gold is assessed using professional testing equipment, with clear explanations around weight and purity so there are no surprises. Pricing is tied directly to live market rates, not estimates or guesswork, and all costs are explained upfront with no hidden charges. Just as importantly, every transaction is properly documented to meet Australian compliance standards, giving both parties peace of mind.

Why Australian Sellers Trust Cash Your Gold

Cash Your Gold is one of Brisbane’s trusted gold buyers who work with individual sellers, jewellers, prospectors, pawnbrokers, and bullion traders across Australia. With advanced XRF technology, no hidden fees, and same-day settlements, our focus is always on fairness, accuracy, and speed.

Final Thoughts

Gold refining doesn’t have to be complicated. The process becomes transparent and straightforward once one understands how gold is tested and purified, and its value is determined.

Ready to Refine or Sell Your Gold?

Get your gold refined professionally and accurately valued in Brisbane at Cash Your Gold. Just walk in anytime for accurate testing and instant payment at real market prices. Contact us now and get the best price on your items.

📞 Call: 1300 678 175 or visit,