Pawnbrokers make loans secured by the pledge of valuable items such as gold jewellery. Pawnshops also sell retail used items obtained through pawn loans or purchased directly from consumers.
How much money can you get if you pawn jewellery?
To determine how much you can expect to receive for your gold jewellery, you should obtain information on what karat jewellery you have as well as the market value or spot price of gold. With this information, you can at least determine a reasonable price.
If you want to sell a 40gram necklace with a 14k stamp, indicating that it contains 58.5% gold, and the current price of gold is $57.64 per gram, the value of the gold in the necklace is 0.584 x 57.64 = $33.72 per gram. Your 40 gram necklace is worth $1,348.8 (33.72 x 40).
Pawnbrokers will not offer you anything less than a 25%. Think about it though, it’s better to have some money than to have such valuable jewellery sitting and gathering dust in your jewellery box. You should choose a pawnbroker over a simple gold buyer because a pawnbroker will consider gems or diamonds. 25% might not seem like much, but it is $300 that has been collecting dust after spending that much time and effort.
Keep in mind that there are many who will offer quick cash for your gold when you sell gold jewellery outright, especially if they believe they can resell it quickly. Here is a good piece of advice: go to a pawn shop with a good track record, as evidenced by online reviews. Honest gold buyers typically have a physical location. Such as an established pawn shop will have decades of buying gold experience.
Is it better to pawn or sell?
By selling directly to pawn shops, you get a decent price for gold jewellery and avoid the lowballing middleman who makes quick cash offers but buys at a lower price.
In essence, selling is more profitable than pawning. This is because pawn loans require you to pay interest and fees in addition to the loan amount. Whereas when you sell you only receive money. It is a one-time transaction. You are no longer under obligation to the pawnshop after you sell. The only reason you should consider a loan over selling is if you want to keep the gold jewellery and you are sure that you will have the funds to be able to pay your loan back in time.
Is it time to sell my gold jewellery?
If the money could be put to better use, such as paying off debts and liabilities, starting a business, funding emergencies, or funding a child’s education, these are investments and you need a good reason to liquidate your valuables.
What is the most effective way to sell gold?
Look for a pawn shop with many years of experience and service to get the best price. Examine Google reviews and seek advice from people you know. Selling to an established pawn shop is always a good idea because such a store has survived due to good business practices.