February 22, 2018
Pawning your gold jewelry can be one of the quickest and most straightforward ways of raising some short-term funds. Perhaps you've got an unexpected bill or need to make a repair to your vehicle. Whatever the reason, pawnshops offer a professional and secure way of loaning you money in exchange for keeping hold of your gold for security. So long as you're able to make your repayments, you'll receive your gold jewelry in exactly the same condition as you left it.
If you're considering pawning some gold jewelry, then one of the first things you'll want to know is how much your gold jewelry is worth. We'll talk you through the process of how pawnshops work when buying your gold, and we'll look at how the pawnshop experts value your gold.
Some of you will be familiar with the fact that gold, as a precious metal, is actually a commodity. This means that, a commodity, it is traded 24 hours a day, 7 days a week, on the open market. The price of an ounce of gold is determined by traders at all hours of the week, and it can change from second to second. As a result, the value of gold, and therefore your jewelry, will be different today than it was yesterday, and again it will be different tomorrow. There are many factors which can influence the price of the value of gold, from supply and demand to currency values, and they will all play a role in determining the current value of your gold jewelry. One of the advantages of the price of gold being traded on an open market is that it means the current price of gold is made public. Therefore, you can educate yourself on the current price, should you wish to double-check with your pawnbroker.
If you can weigh your piece of gold, and find out the current value of gold, you'll be able to get a rough estimate of how much your piece of gold jewelry is worth. Of course, this will be a rough estimate, as you'll be finding out the worth of the gold itself, and not on the piece of your jewelry. Pawnbrokers, much like traditional jewelry retailers, will always pay slightly less than the actual value of a piece of gold or jewelry, as they must be able to make a slight profit on it. It's much the same as a car dealership; a business wouldn't last long if they gave you the same price as they would be able to sell it for!
In addition to the weight, you must also factor in the purity. You'll get more for a 24-karat gold piece than a 10-karat piece. You can use the percentage of pure gold in your piece and combine it with the weight and current value to get a closer estimate to your current piece's price. Because gold is priced by the ounce, it's vital that the karat of the gold is taken into account. The purer your gold, the more valuable it will be. Any piece which is less than 24K will be gold mixed with silver alloy.
Once you've done some research and found out as much as you can about your gold, it'll be time to consider using a pawnbroker to raise some cash. Unless you need the money immediately, you may consider waiting until the price of gold has risen. However, for most people, they'll be unsure whether the price of gold is going to rise or fall over the coming days. It's still worth mentioning, however, as if the current gold price is at an all-time low, then you may reconsider selling it. Conversely, if the current value is at a record-high, then it will be a good time to pawn your gold, as it'll be when you'll get the most money for it. If you're looking to liquidate your gold into cash, then the best time to do it is when gold is being traded for the most money.
Due to the constant changing of gold's value, there's very little point in using what you originally paid for your piece as any sort of benchmark for what it may be worth now, particularly if you bought it a relatively long time ago. Furthermore, jewelry stores have huge markups for their gold, often over 1,000%!
Because you're likely to be considering pawning a piece of gold jewelry, rather than a bland gold nugget, you must also factor in the style of your piece into the valuation. Of course, the more sought after and rarer the piece, the more valuable it is going to be. Despite being made out of exactly the same element, the cost of a one-off, highly sophisticated ring is going to be worth more than a factor produced pair of earrings, even if the price and karats are the same.
Now you've educated yourself on how gold is valued, you'll feel far more confident and comfortable when dealing with your local pawnbroker. All the reasons listed above will be what guides your broker when settling on a particular price. Of course, your broker will also need to include the overheads and expenses of his business when finalizing a price, including leaving room for a profit for himself, but this should take you a step closer to knowing how to get the best price for your jewelry.
Although you can use online resources such as this to get a guide figure for your gold, the only way to get an exact figure is to have it properly inspected by an expert for its current karat, weight and value. Mr. Deals will be able to offer this service, and give you an idea of the commission they'll charge, and therefore how much money you'll be able to take home with you today.
Remember, that if you decide to take your gold to your pawnbroker, you're under no obligation to have to sell there and then. However, remember that whatever valuation you're given from your broker is not likely to be relevant next week, or even by tomorrow.
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