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Smelting gold usually involves high-tech and high-cost tools to perform. Mostly, mining companies do the procedure, which sees one material bonded to or released from another in the presence of extreme heat. However, prospectors, and people at home, can smelt their old gold using some simple steps.
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No dont have to upgrade prior to smelting. In fact when starting the game, it will take you a while to get enough magnetite to do some of the first upgrades. But you still have to have enough funds to smelt the ore. I have had to smelt small amounts - run small bar to bank - then smelt remainder of gold.
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If you have gold that is mixed with other materials, then it would be best to mix flux with it before smelting. Use two pinches of flux per ounce of gold jewelry and more for dirty gold scraps. If you are going to use the potato method, just add one pinch of borax into the potato hole before melting the gold. 4. Melt the gold by using a torch.