Although the price of gold can be unpredictable, it is a commodity that continues to appreciate. When times get tough, many people turn to pawn shops to sell or pawn their gold jewellery for quick cash. Pawnshops offer a fast, convenient way to get instant cash for gold jewellery.
If you've been toying with the idea of pawning or selling your gold, we've put together a few things to keep in mind. We'll get you up to speed on how pawn shops appraise gold, so you'll know what to look out for when determining its worth and help you get the best possible price for your gold.
Things to look out for when selling gold
Determining the weight
One of the first things a pawnshop will look at in a piece of gold jewelry is the weight. The price of gold is determined by weight. Based on the weight of your gold, a pawnbroker will give you the worth of it.
It is always a good idea to do a bit of research before going into a pawn shop on what the current gold price is. As prices fluctuate daily, it is always good to know what gold is currently going for.
Purity
Establishing the purity of your gold is another significant factor that will impact the price. Most gold jewelry has an engraving/stamp which indicates how pure it is. This can be seen as 24-karat gold, 12- karat gold, 18-karat gold, etc.
24-karat gold is the purest you get, which also carries a high price tag. Make sure you know the purity before you go into the pawnshop, this way when a pawnshop appraised your jewelry, you'll know if they telling the truth or not.
Getting the best deal possible
Keep an eye on the scale
Most of the time gold is weighed in grams, or pennyweights, as opposed to ounces like most people believe. One ounce equals 28 grams. However, if done correctly, Gold should be weighed in Troys. 1 Troy equals 31.1 gram.
Make sure your gold is weighed in Troys as you could be missing out on a few dollars if weighed in any other metrics.
Separate jewelry based on Karats
In some cases, pawnbrokers value gold based on the lowest karat of your jewelry. Where you have multiple karats, it would be best to only sell one at a time, or better yet, take them all to different pawn shops to get the best price possible.
How much can you get for your gold at a pawn shop?
There is a range of factors that influence how much pawn shops pay for gold today. The most obvious ones are:
- The current price of gold
- The ability to re-sell your jewelry
- The profit the pawnshop can expect from the sale of your jewelry
The gold price
Just like any other commodity, the price of gold fluctuates based on market conditions. Due to this, it is important to check the price of gold before visiting a pawn shop. A pawn shop will never pay the market price for gold jewelry as they still need to make a profit at the end of the day.
The likelihood of reselling your jewelry
When evaluating a piece of jewelry, many pawnshops look at how easy it will be for them to re-sell it. Popular items such as rings are an easy sell, while an antique item may only appeal to a small audience, making it more difficult to re-sell.
Why sell your gold jewelry at a pawn shop?
Selling your gold jewelry to a pawn shop can be an attractive option in certain circumstances. The biggest advantage is instant payment. Pawnshops pay right away so you are guaranteed to get cash right away.
Pawnshops are also relatively accessible; you'll find one in most shopping centers. This makes it a convenient and simple way to sell gold jewelry. Selling gold at a pawn shop is a great idea if you're looking for instant cash for unwanted jewelry.
Before flocking to your nearest pawn shop, make sure you are clued-up on the ins and outs of your jewelry. Make sure you know its worth, purity, and karats, this will ensure you get the best deal possible for your jewelry.
