If you have a few pieces of gold jewelry that you would like to sell for a quick buck, a pawn shop is a convenient, quick way that will get you instant cash when you need it most. Pawnshops evaluate gold on several factors, these include:
- Current price of gold
- The profit margin the owner can make off of your piece
- The fineness of your gold jewelry
- The resale value of your gold jewelry
Current price of gold
Like all other commodities, the price of gold fluctuates based on market conditions. Gold prices change quickly so you must check the current price before walking into your local pawnshop. Pawnshops do not however pay the market price for gold.
At the end of the day pawnshops still need to make a profit so they will never offer the true market value of gold to you. Instead, pawnshops offer a much lower price per gram.
The fineness of your gold
Gold jewelry is not made from 100% pure gold as pure gold is extremely soft and scratches easily. It is rather made from a blend of gold and other metals which increases its durability. Gold jewelry ranges from 10 karats to 18 karat gold.
This refers to the amount of pure gold per 24 parts of metal. 14 karat gold jewelry which is commonly used in engagement and wedding rings consists of 14 parts gold and 10 parts other metals such as silver, copper, or nickel. You can usually locate the gold fineness stamp on the inside of the band.
The higher purity of your gold jewelry, the more likely you are to be offered more at a pawn shop. Be sure to know the fineness of your jewelry before taking it into a pawn shop. By understanding the market value of your gold jewelry, you'll be able to negotiate the best possible price.
Comparing pawn shops
You must always remember that the amount you are offered for your gold jewelry will vary from pawnshop to pawn shop. Although pawnshops base their offers on gold jewelry on the current prices of gold, every business is unique so factors such as operating costs and profit margins are also taken into consideration and can vary from shop to shop. With this in mind, it is a good idea to visit a variety of pawn shops in your area to ensure you get the best possible deal.
Many pawnshops also consider how easy it will be to re-sell your jewelry after purchasing it. Popular pieces such as engagement rings are much easier to sell and attract a wide range of buyers as opposed to unusual, antique pieces.
Advantages of selling gold jewelry to a pawnshop
One of the biggest advantages of selling gold jewelry to a pawn shop is the idea of immediate payment. There's no waiting for money to clear into your account, you are paid right away, which is a significant advantage if you are strapped for cash.
In South Africa there are over 15 000 pawn shops around the country, making it an extremely convenient and simple way in which to sell jewelry.
There is no need to courier your items to a different province just to get a buyer. You are sure to find a pawnshop within a few kilometers from your door.
Tricks and tips on how to sell gold jewelry to a pawnshop
Know the fineness
Make sure to check the fineness of your piece before stepping into the pawnshop so that you are aware of what you are selling. Once you know the fineness you can calculate the value of the gold by multiplying the gold content by the current price of gold. Remember that you won't get the full market value from a pawn shop as they still need to make a profit from the sale.
Weigh your gold at home
Make sure you know the weight of your jewelry by weighing it at home. Get to know the weight in grams. Make sure the weight you get is the same as what the pawnshop tells you the weight is.
Never mix gold karats
If you have decided to sell your gold jewelry, avoid selling different pieces with different karats together. This could lead to getting a quotation on the lowest gold purity.
Get as many offers as possible
If you live in a large metro where there are a few pawn shops, try visiting a few to get quotations on how much they will offer you. You may find you get very different offers from shop to shop making certain offers a much better deal than others.
Selling your gold jewelry to a pawn shop will get you an instant payday, making it a very attractive option when you're in a bind for cash.
Be sure to research your gold jewelry thoroughly before stepping into your nearest pawn shop so you know exactly what you are selling.