You want to sell your gold jewelry? The first step is comparing its value in different stores. You want to know how much money you’ll get from other dealers. Like everyone else, your first stop will be at the pawnshop. Is it profitable to sell gold to the pawnshop? What are the benefits of trading gold to pawnbrokers?
How much is gold worth at a pawn shop? At the pawnshop, gold is worth between 25% to 90% of its actual value 24K gold is worth. So, you get $535 to $803 per ounce at a pawn shop, or half what you get in real value.
While pawning gold gives you quick money for the gold, it’s expensive in the long run. Here’s a complete analysis of the value of gold at the pawnshop.
How the pawnshop calculates the price of gold
The value of gold and its exchange rate keeps changing. Even so, most pawn shops are ready to purchase your gold if you’re selling.
A pawnbroker will not buy your gold instantly, though. It doesn’t matter if it is a piece of jewelry or in any other form. They’ll always determine its value first.
Below are several factors that pawnshops consider when calculating the price of gold.
1. Demand and Gold Market Price
For most investors, gold is a store of value. That’s why when there’s inflation, they rush to save their wealth in this precious metal. This increases its demand.
But the amount of gold mined yearly is not that much. Therefore, this metal’s supply is limited. Hence, a rise in its demand forces its price to shoot up.
Pawnshops are also going to evaluate the price of gold according to its current market price. If the latter is dropping, you may not get as much as you anticipated.
2. Gold Purity
Pawnbrokers always identify gold’s purity when calculating its price. For instance, 14K gold comes with 58.30% gold purity. Hence, it is more expensive than 9K gold, whose gold percentage is only 37.5%.
3. The sophistication of the jewelry
How complex is the piece of jewelry you’re selling at a pawnshop? Most people sell plain gold pieces. However, if yours features a gemstone-like diamond, you’re likely to get a great deal.
This is because it is more attractive and sellable. The pawnbroker might not need to change or add anything to find a buyer.
4. State of the precious metal
Pawnshops also consider the state of the gold you’re selling. If it is in poor condition, you may get an unbelievably low offer. These businesses also include the cost of cleaning, melting, and repairs in the final price.
Polish your gold jewelry before taking it to a pawnbroker. If it is damaged, repair it. This helps you to avoid any unnecessary price cuts when selling.
5. The historical value of the gold Jewelry
Most pawnshops are willing to buy pieces of gold jewelry with historical value at a higher price. For instance, let’s assume you have a 14K gold bracelet that Queen Elizabeth II wore. A pawnbroker will pay more for it than another piece without any heritage.
When selling gold pieces with historical value, have a certificate of origin. This proves that the celebrity you claim wore the bracelet, ring, or chain actually did. Otherwise, the pawnshop might not believe you.
Note that gold jewelry with popular jewelry designer’s signatures also falls under this category. If yours has one, mention it to get more cash for it.
6. The jewelry weight
Pawnshops need the weight of the jewelry you’re selling to calculate its price, depending on its karats.
A 24k gold jewelry piece goes for at least $22. Its 99% purity makes it the most expensive. Below is a table showing how much each gold costs per gram.
How Much Gold Is Worth at a Pawn Shop
|Weight of gold in grams||Purity in Karats||Estimated pawn shop price in US dollars|
What Influences the Price of Gold at the Pawn Shop?
The current market price of gold
When the economy of a state is stable, the prices of gold are more stable. However, that might change where inflation is high, or the economy is struggling to stabilize. The prices of pure gold at pawnshops will always go as per the market value of gold in real-time.
Experts agree that the supply of gold is limited. Although there could be a few undiscovered ores, the existing mining grounds are quickly depleting. So, when people hold gold intentionally as a store value, it creates scarcity and triggers soaring prices.
History of the gold you are selling.
Heritage gold is known to be very valuable. An occurrence, though often, where people selling heritage gold require supporting documents for them to sell them at pawn shops.
In instances where one has the proof or certificate of origin, you are likely to sell at a much higher price. For example, a heritage gold of 18 karats is expected to sell at the same as 24 karats of gold price.
Purity of the Gold
Gold units are in karats, and their purity will significantly affect your pawn offer. In most cases, jewelry will hold a percentage of gold that ranges from 8-24 karats.
The least expensive jewelry ranges from 8-10 Karats with less than 50% of pure gold. 24K gold is the most costly because it is 99% pure gold.
The Pawnshop you sell to
Strive to find the best pawnbroker to sell your gold to. If they’re reputable and have a great work ethic, they’ll make you a great offer.
How to sell gold at the pawnshop
Are you planning to sell your gold at the pawnshop? Then, check out these valuable tips to help you get your precious metal’s value or more.
Your gold should look as good as new when you take it to the pawnshop. Make sure to clean or polish it well. Avoid scratching it while you do so.
Use a cleaning solution for gold to attain the best results. One that cleans other metals might damage your gold or be ineffective.
Find out the purity (karats)
Know the purity of your gold before seeing a pawnbroker. This helps you to know a bad offer and a good one.
Know the weight of your gold
The pawn shop will need your gold’s weight to calculate its total value. Most of them use pennyweights or grams.
Once you know the weight of your gold, take it to multiple pawnbrokers. Their offers might not be similar, based on the points they consider to calculate the final price. Sell your metal or jewelry piece to the pawnshop offering you the most money.
Research the market value
Find out the price of gold on the market. If you already know your gold’s fineness and weight, you can calculate your metal’s price. This makes it difficult for the pawnshop to lie to you or offer you anything less.
Choose the best pawnshop
Gold is a valuable metal. You don’t want to sell yours to the wrong pawnshop since you may receive an unfair offer or a bad experience.
How can you select the best pawn shop for you? Here are four strategies that could enable you to do that.
- Comprehend how pawnbrokers work to know what to expect. This also helps to avoid pitfalls that may ruin a good deal for you. These include demanding unreasonably high offers or failing to negotiate.
- Confirm that the pawnshop you sell your gold to is licensed. This prevents you from making shady deals that may cause legal complications later.
- Read customer reviews. If multiple people have complained about a particular pawn shop, look for another one.
- Only sell your gold to a pawnbroker you’re comfortable with. Should you enter a pawnshop and feel as if something’s off, leave. You should only do business with pawnshops you can trust.
FAQ: Answers to Questions about Selling Gold to the Pawnshop
Is selling gold to the pawnshop profitable?
Yes. You can make a profit from selling your gold at a pawnshop. However, it’s not as much as what you’d get from an online gold dealer.
Most pawnshops will only give you about 40% – 60% of your gold’s actual value. This is because they don’t have any guarantee that you obtained the precious metal legally. In addition, your piece could also be a gold-plated metal and not real gold.
Pawnbrokers leverage acid tests to determine the authenticity of your gold. One needs to be experienced to interpret the results accurately. If not, they must perform the test with an expert.
Pawnshops also pay less than online gold buyers because they resell the gold at a lower price.
How do pawn shops know the value of gold?
Pawnshops know the value of gold by calculating it. To do so, they must identify the following things:
- The purity of your gold
- The weight of your gold
- The currency price of gold per gram
Here’s the formula they use:
Gold’s purity x the gold’s weight x the current gold price (per gram).
Which is better: pawning or selling directly?
Selling directly is better because it’s a one-time transaction. You never have to go back to the pawnshop after that. With pawning, you must go back to the pawnbroker if you intend to keep your gold.
Winding Up: So, Should I Sell Gold at the Pawn Shop
By now, you know that a pawnbroker will pay you a fraction of the real price of your gold. Your god is worth about half of its original price at a pawn shop.
If that sounds like you’re losing money, then you should consider other ways to cash it. But, if you’re in a hurry and need quick money, then the pawnshop is the most convenient way to sell gold!
Any queries on pawning gold? Let’s answer you!