Sell ​​gold in a pawnshop: how, why and expert advice (2023)

If you have gold jewelry that you want to sell quickly, selling it at a pawn shop is a quick and convenient option that will net you an immediate cash payment.

That said, selling your gold at a pawn shop can come with significant downsides, from lower prices to a selling process that is often pressurized and intimidating, especially if this is your first time selling, which we've all discussed inour complete guide to selling gold.

Here's what you need to know if you're looking to sell gold jewelry or other gold items to a pawn shop. Our guide explains everything from how much pawnshops are currently paying for gold to the steps you need to take to get the best possible deal.

We also list alternatives to selling your gold jewelry at a pawn shop, including selling gold jewelry online.

How much do pawnshops pay for gold in July 2020?

The amount pawnshops will pay for gold depends on several factors. The most important are:

• The current price of gold.
• The delicacy of your gold jewellery
• The profit margin that the pawn shop expects to make on the sale
• Whether your gold jewelry is easy to resell or not

It's also worth noting that most pawn shops will buy gold jewelry.gold bar,golden coinsand other forms of investment are generally not worth selling gold to a pawn shop; Instead, it's best to sell them to a buyer who specializes in bullion.

Below we explain how each of these factors affects how much a pawn shop is willing to pay for your gold jewelry.

The market value of your gold

Let's start with the current price of gold. Like other commodities, the price of gold fluctuates over time depending on market conditions.On July 23, gold prices in the US were $60.13 per gram, $1870.54 per ounce and $60,131.54 per kilogram..

Gold prices can change quickly, so it's important to check the current price before visiting a pawn shop or other shop that buys gold.

It is important to pay attention to thisNo pawn shop will pay the market price for gold. Pawnshops need to make a profit to stay in business, which means you'll never get the exact cash price for gold jewelry.

Instead, you are usually offered significantly less than the market price. Most of the time, the less gold you have to sell, the lower the price you're offered per gram. Knowledge is the key. AsRichard Weber, President of the Professional Numismatists Guild, says, "Know the current spot price of the bullion you wish to buy or sell."

While the specific price you get may vary from pawn shop to pawn shop, 50% of the scrap gold price is a common amount.

The delicacy of your gold jewellery

Second, it is important to understand the delicacy of gold. Gold jewelry is almost never made from 100% pure gold because pure gold is soft and easily scratched. Instead, most gold jewelry is a mixture of gold and other metals added to increase durability and scratch resistance.

The vast majority of gold jewelry, from wedding and engagement rings to watches, earrings and pendants, is made of 10k, 14k or 18k gold.

The number used to indicate a gold's karat, or fineness, refers to the total amount of pure gold for 24 parts of metal.

Pure 24k gold is 24 parts out of 24 gold. Commonly used for engagement and wedding rings, 14k gold is 14 parts gold and 10 parts other metals, typically copper, silver, nickel, or others. 18k gold is 18 parts pure gold times 24 and so on.

With most pieces of gold jewelry, the fineness is noted somewhere. On an engagement or wedding ring you will usually find the fineness of the gold engraved on the inside of the band.

In most cases, the higher the purity of your gold jewelry, the greater the value, and a pawn shop will likely offer more. Make sure you know the purity of your gold before approaching a pawn shop as this will help you better understand its market value.

The specific pawn shop you visit

Third, it's important to note that the offered value for gold jewelry will likely vary from pawn shop to pawn shop.

No two companies are identical. While most pawnshops base their quotes on the current price of gold, operating costs and profit margins can vary widely from store to store, meaning you can get wildly different quotes for your jewelry from different pawnshops.

For this reason, it's often a good idea to visit several pawnshops before deciding where to sell your gold.

The ease of reselling your jewelry

Although most pawnshops use the current price of gold to value their jewelry, many also consider how easy it is to resell your jewelry after purchase.

Some types of jewelry are easier to resell than others. For example, popular items like gold wedding bands have a large market of potential buyers, making them easier to resell than items that only attract a smaller audience of potential customers.

While this can vary from pawn shop to pawn shop, items that can be easily resold by the pawn shop may have a different value than purchased items due to their scrap value.

Pros and cons of selling gold to a pawn shop

Selling gold jewelry to a pawn shop can be a good option in certain situations. However, there are pros and cons to selling through a pawn shop that you should consider before disposing of gold jewelry.

The biggest benefits of selling gold jewelry to a pawn shop are:

• instant payment. Pawnshops pay instantly, which means you get money for your gold jewelry when you sell it. You don't have to wait for a wire transfer or check; Instead, you get paid instantly with no delay.

  This can be a significant benefit when you need cash ASAP and don't want to wait the 1-3 days it takes most online gold sellers to process payments.

• Convenience. As long as there are pawn shops near your home, selling gold jewelry to a pawn shop is a straightforward process. Because you're selling locally, you don't have to ship your jewelry to another city or state.

The main disadvantages of selling gold jewelry to a pawn shop are:

• Low prices. Pawnshops make a profit by buying cheap items and selling them at higher prices. Most pawn shops have significant operating costs that determine how much they can pay for your gold.

  In almost all cases, you will get a better price for your gold at a pawn shop than you would from an online gold buyer.

• high-pressure sales process. While most pawn shops are honest businesses, some employ high-pressure selling tactics, like aggressively bargaining or offering your jewelry an unfairly low price, all in hopes of getting a good deal.

• The team must not be a gold expert. Pawnshops often sell a wide range of products, from consumer electronics to musical instruments, collectibles, watches, jewelry, and more. Therefore, the employees are not always specialized in each product category.

  While this isn't usually a big problem for gold bands and other common gold items, some types of gold jewelry, particularly jewelry that has a value in excess of its gold grade, may not have an accurate value at a pawn shop.

7 steps to sell gold to a pawn shop at the best price

Are you ready to sell your gold? If you have decided to sell your gold jewelry to a pawn shop, follow these seven steps to get the best price and not get ripped off.

1. Know the delicacy of your gold jewelry

As mentioned earlier, the value you get for your gold jewelry depends on its pure gold content. Be sure to check the grade of your jewelry beforehand (you can often find this on the inside of the bracelet, called the "gold seal") so you know what you're selling.

You can then calculate the approximate gold value by multiplying the gold grade by the current scrap gold price. Keep in mind that since the pawn shop must be able to sell the gold at a profit, you will usually receive less than market value.

2. Check the weight of your gold jewelry at home

Be sure to check the weight of your gold jewelry before selling it. You can do this with a simple kitchen scale that measures to the nearest 1/100th of a gram. Write down the weight of the gold item in grams and make sure the weight matches the weight at a pawn shop.

It's worth noting that some gold buyers weigh gold in pennyweights, an old-fashioned unit equal to 1/20th of a troy ounce. You can usethis calculatorto convert the weight of your jewelry in grams to pennyweights.

3. Avoid mixing karat gold

Avoid mixing karat gold when selling your gold. Be sure to separate 10-karat, 14-karat, or 18-karat gold items at the pawn shop, as weighing them all together can provide a quote based on the gold's lower purity.

4. Be careful not to polish your gold jewelry

While polishing your gold jewelry before selling it might seem like a good idea, it's not a smart move. While polishing usually removes scratches, it can also remove gold from your jewelry and diminish its value.

Instead of polishing your gold band, earrings, or other jewelry, gently wipe them with a damp paper towel to remove any dust or dirt stuck to the surface.

5. If possible, get multiple quotes before selling

If you live in a medium-sized city or a large metropolitan area, there are likely to be several pawn shops within a reasonable distance of your home.

If possible, try to visit several pawnshops before deciding where to sell your gold jewelry. You can receiveverydifferent offers from each store, creating a better option for you as a seller than the others.

6. Only sell to a reputable licensed pawn shop

Make sure before you sell your gold jewelryYou are dealing with a reputable pawn shop. Most states require pawn shops to be licensed to operate. The lender must also provide identification and detailed receipts to document the sale.

7. Consider selling your gold jewelry online for a better price

Finally, when you are looking for the best possible price for your gold jewelry, you should consider selling it online rather than at a pawn shop.

Like other physical stores, pawnshops have relatively high operating costs. Not only do you have to pay rent and utilities, you also have to pay advertising, security, employee salaries and many other expenses.

These operating costs mean that the pawn shop must maintain high profit margins to stay in business, margins that result in lower bids when purchasing goods.

Online gold buyers likeAbe Mor diamond grinderThey often offer higher prices for gold than pawn shops. While most shops will pay around 50 cents for scrap gold, Abe Mor offers up to 75% scrap gold jewelry value.

They also offer a price guarantee, which means you can get a higher price than you would at a pawn shop or other brick-and-mortar store that buys gold jewelry.

To complete the list, they are real gold and jewelry experts, which means they recognize what you have and not just guess like some pawn shops do.

Diploma

TrotzIf you sell gold jewelry to a pawn shop, you won't get the best price, offers you instant payment for your unwanted or unused jewelry, making it an option worth considering if you are in urgent need of cash.

If you are planning to sell your gold jewelry to a pawn shop, be sure to use the above techniques to avoid common scams and ensure you get the best possible price.

For more information on selling gold jewelry, go toour guide to the best places to sell gold for cash, which provides more details on online and offline businesses that buy used gold jewelry and other gold items.