Scrap gold refers to any gold item that is no longer in use or desired for its original purpose, such as broken jewelry or old gold coins. These items are often sold to refineries or gold buyers who melt them down to extract the gold content. Melt-grade jewelry, on the other hand, refers to gold jewelry that is specifically intended to be melted down and refined for their gold content. Melt-grade jewelry is often made with high purity gold and may have a higher melt value compared to regular scrap gold items.