I know where you are coming from. You could use a little extra money and pawning gold is definitely an option at your disposal for getting the extra funds you need.
But how do you pawn gold – what is the best way to go about it and what do you need to know about the process before you begin?
Well, the good news is that pawning gold is normally very simple.
Most pawn shops are well equipped to handle gold when it comes in as it is something that they deal with on a regular basis.
In fact, gold may be the most common item that pawn shops see come through their doors.
You might almost be best off to think of the people that work in pawn shops as gold experts in that they probably see more of it pass through their hands than in any other industry.
So keeping that in mind, there are some things that you should do to make sure that you get the most money possible for your gold when you take it into a pawn shop to either sell or get a loan against.
Getting The Most For Your Gold At A Pawn Shop
The first thing that you should really think about doing is a basic cleaning of whatever your items may be.
You want to remove any heavy debris and eliminate any significant tarnish if possible. This is best done by using a jewelry cleaner because it won’t damage the metal and will remove tarnish effectively.
That having been said, a little soap and water will do the trick as well if you are in a pinch.
If your gold is jewelry with diamonds involved then you will definitely want to use a toothbrush and scrub around and underneath the diamonds if possible.
With jewelry that has stones, it’s extremely common for dead skin cells and old lotion to hide in these crevices which make the diamonds look cloudy and dim.
As a result, the pawnbroker may feel that your diamonds are a lower quality then they actually may be and your offer will be significantly reduced based on that.
The second thing that you should do is to be sure to take any kind of appraisal with you if you have one for the item.
Keep in mind though that whatever price the appraisal states isn’t going to be what a pawn shop offers you for the item and it’s truly not even representative of it’s real value.
An appraisal value is simply an insurance companies estimated retail replacement cost and really has very little to do with the things pawn shops care about, such as the weight and purity of the metal.
Gold Bullion or Coins
When it comes to other gold items such as bullion, bars or coins then there are a few things that you can do to put the odds in your favor.
If we are talking about something like a coin, then you will want to have the coin graded and have that documentation with you.
Coins are collectible above and beyond their scrap metal value and if you can document that your coin might be worth a more considerable amount, then you will likely be able to get a very good price for it at a pawn shop.
With bullion or bars, it’s good to have them in sealed plastic containers if possible and if not, to be sure that you remove the tarnish from them just like you would jewelry.
Know The Price Of Gold Upfront
Knowing the price of gold can help you determine how far you might be able to negotiate with a pawn shop when you take yours into them.
It’s easy to find out – just go to goldpirce.org and check it out.
The price stated is going to be for 31 grams of 24kt gold.
So if you weigh your item (lets just say it’s a necklace) and it weighs 15.5 grams and is made out of 14kt gold then you can figure out what the scrap metal price of the item is worth with a little simple math.
(Current Price [from goldprice.org]) / 31 x 15.5 x .575 = the value of that item.
Are you confused? Let’s work through it.
You want to take the current value of the metal and divide it by 31 because there’s 31 grams in a troy ounce. That will give you the price of 24 karat gold per gram.
You will then want to multiple that by the actual weight of your item in grams. In the example that was 15.5 grams.
Because your item isn’t pure 24 karat gold but 14kt instead you will want to multiple whatever the result of the last calculation was by the purity of the metal, which is .575 in the case of 14kt.
Just so you know, 10kt is .41, 14kt is .575 and 18kt is .75.
That will give you the raw gold metal value of your item and a pawn shop will probably offer your between 40-65% of that value.
Knowing the value of your gold upfront may give you the opportunity to negotiate for a slightly higher price. Just don’t over negotiate as that won’t really get you anywhere. Typically speaking, asking for another 10-15% is reasonable.