In today's swerving economy, stocks are out, and gold is in. The price of gold keeps going up and that’s making many people very happy. When you really think about it, the price of gold rises more than it drops. Since gold is such a precious metal, how do you cash it in and where? Another option is to Pawn your gold for cash and pay back the loan when you can instead of selling it.
How to pawn your gold for cash
If you're like thousands of South Africans, you’ll go to the wrong places to sell these gold items and precious stones. Many will go to a jewellery store and will receive less for their gold that what they would have should they have gone to a pawn shop.
With every good deal comes a case of buyer's and in this case, seller's beware, a reminder that consumers should do their homework first before selling their jewellery at gold parties or in a local jewellery store.
Follow these tips from to make sure you're getting the best value for your gold.
The Nine Tip To Sell Your Gold
1. Understand the Scales
The weight of gold helps determine its value, but keep in mind that jewellers use a different measurement standard where gold is measured 31.1 grams per ounce. Some dealers may also use a system of weights called pennyweight (dwt) to measure, while others will use grams. A pennyweight is the equivalent of 1.555 grams. Be alert that a dealer does not weigh your gold by pennyweight but pay you by the gram, a sneaky way for the dealer to pay you less for more weight of gold.
2. Know Your Karats
Pure gold is too soft to be practically used so it is combined with other metals to create durability and colour. Most jewellery describe a karat fineness of the alloy, depending on where you got if from. One karat equals 1/24 of pure gold by weight. So, 14 karats would mean the jewellery was 14 parts gold and 10 parts other metals. It is illegal for jewellery to be labelled "gold jewellery" if it is less than 10 karats. It is important to know the karats of your gold to make an informed decision on the scrap value of your jewellery.
3. Keep Your Karats Separate
Don't let jewellery of different karat value be weighed together. Some dealers will weigh all jewellery together and pay you for the lowest karat value. Separate your jewellery by karat value before going to a pawn shop. It will also help the pawn broker to do they weighing of jewellery faster.
4. Know the Value
Call a local pawn shop like Capital Pawn to verify the current market price for gold before you sell. Some dealers know people are just looking for quick cash to put in their pockets and will offer you money for your gold that is lower than the actual value.
5. Know Your Buyer
This does not mean you should know your pawnbroker by name and know his family and friends as well. Know where they are situated and get good review about them before just jumping into business with them. Fortunately, Capital Pawn has been around for a very long time and all our customers leave our premises with smiles on their faces. We pride ourselves in the customer satisfaction and service.
6. Know What You Are Selling
Some gold items may be worth more when sold as they are, rather than if they are melted down. If your gold necklace or bracelet comes from a well-known designer or maker, it may have a value to some buyers beyond the gold it's made of.
7. Shop Around
Remember, you don't have to jump at the first offer for your gold. Shop around for a few different bids. To ensure you are really getting the best price for your jewellery, have it appraised before selling. This may cost you more up front, but your jewellery may be worth more than its weight when you include workmanship, artistic value, and embedded gems for the piece as a whole.
8. Be Realistic
Keep in mind that gold parties, often hosted by friends and neighbours, are really more about fun than value. Taking all factors into consideration, sellers at gold parties will likely get between 70 and 80 percent of the real value of their item. Besides, gold parties aren’t such a big thing in South Africa yet, thus you needn’t worry about that.
9. Bring Your I.D.
Gold buyers are required by law to ask sellers for government-issued identification. This requirement is designed to protect consumers by helping police investigate the sale of stolen property and prevent money laundering. All reputable gold buyers comply with these rules, so if you don't get asked to show your I.D., be warned.