A small amount of Gold jewellery can be worth thousands of Rands depending on the weight and karat purity. About half of the gold produced in the world is used to make jewellery and about 40% of that is used in investments. After all the years Gold is a precious metal that retained its value year after year, making it the perfect time to get some cash for your unwanted gold jewellery.
If you're in the market to sell your gold, a pawnshop would be a great place to start. Pawnshops accept all types of gold jewellery, including 14K gold.
If a piece of gold jewellery looks beautiful and is in perfect condition, it doesn't necessarily indicate how valuable that piece is. Whether it's an old piece you have been hiding in your dresser or a beautiful, almost brand-new well looked after gold ring, the appearance of the piece is less important than the quality of the gold, karat purity, weight, and gold price of the day. Additionally, if the piece has been manufactured by a high-end brand, or if there are genuine diamonds set in the gold jewellery, that can increase the value of the piece.
Determining the value of your gold
When you're in the market to sell a piece of gold jewellery, it can quite difficult to determine just how much cash you will be able to get for your gold jewellery at a pawn shop. Once you get to know the process, it is quite simple to determine the value.
As a general rule, the heavier the gold and higher the karat purity, the higher the value of your jewellery. A high karat number indicates a higher percentage of gold that is pure. The most common gold is fourteen karats or 14K Gold. This shows that the gold contains 14 parts of pure gold, or is 58.5% pure. To work out the percentage, you divide the karat number (14) by 24, which is the highest karat level possible in gold. The remaining parts of the total 24k are sometimes made up of silver, copper, zinc, palladium, or nickel.
How much pawn shops pay for gold jewellery depends upon:
- Karat
- Weight
- The Gold Price
- Discretion of the pawnbroker
The karat indicates the purity of the gold and since it is priced by the gram, that is where the weight comes in. The supply and demand, as well as current events, influence the price of gold. As it is bought 24/7 the price of gold constantly fluctuates. Besides, a pawnbroker will always try to obtain a profit from a piece of gold jewellery once it is resold, an evaluation on a piece of gold jewellery will consider the above factors as well as considering a profit margin for the piece
How to determine the purity of your gold jewellery
It is important to know the karat of your gold jewellery. This can be determined by checking the inside of the piece for a symbol. The symbol with either read 10k, 14k, 18k, 417, 585, 750, or higher. These are called hallmarks and represent the purity of the gold. The higher the number, the purer the gold.
The symbols on the inside of your gold piece of jewellery will read 10k, 14k, 18k, 417, 585, or 750. These numbers are referred to as hallmarks and they signify the purity of the gold. Anything less than 24K gold is a mixture of gold and silver alloy.
Determining the weight of your gold jewellery
This is quite easy to determine. All you need is a scale that weighs to a tenth of a gram.
How to calculate the value of your gold jewellery
To determine how much you could expect a pawn shop to give you for a gold piece of jewellery, you'll have to know the karat, weight, and current market value of gold in grams.
Use the below calculation:
- Multiply the weight by the karat number.
For example: 22.4 grams x 58.5% (14K). This gives you 13.1 grams of gold
- Multiply the grams of gold (13.1) by the current price of gold in grams. As of today, the current price of gold is $61.50. Therefore, your piece of gold jewellery would be worth $805.65 or R13 842.
It is important to note that the above calculation is based purely on the gold only. Pieces that have stones or embellishments included could increase the value.
In all likelihood, you won't be able to get this exact amount, but it is a good starting point. Keep in mind that pawnshops are businesses and it is important to respect the fact that they also need to produce a profit. As a result, they need to pay less than what they will sell it for.
Once you have determined the value of your gold piece, venture out to various pawnshops who may be interested in your piece. The market is quite competitive, so you are sure to find more than one buyer. Don't accept the first offer you receive. Shop around before taking the final offer.
Good luck 😊
