The gold standard, the golden boy/girl, a golden age. There’s a reason why the word ‘gold’ is so immediately synonymous with all things great and good, which explains why you might consider pawning gold to be a good idea. There’s also a reason why the gold medal is the best prize available at the Olympic Games. This is because gold, throughout human history, has been considered to be one of the most valuable, most sought after, and most coveted materials gifted to us by Mother Earth.
So, it’s no surprise that gold jewelry pieces are among the most frequently pawned items in the United States. Gold’s value is consistent, its selling value is obvious, and its cash rewards can be great. But how much can you expect to receive when you are pawning gold? After all, the jewelry didn’t come cheap in the first place. It may even have significant sentimental value that will be difficult to replace. This is why you need to know you are getting a good deal.
With this in mind, we’ve put together a handy guide that will help you understand how much cash you can expect to receive for your gold, as well as information on how you can get the best deal possible for your piece. After taking a look at this information, you should be able to decide whether to go through with pawning your gold jewelry or not. However, if you still have questions or if you need any further advice, don’t forget to get in touch with our team. We are always happy to help.
Pricing Factors for Pawning Gold
There are many factors which a pawnbroker will consider when they are assessing a piece of gold jewelry. You should bear these in mind when you are deciding if pawning gold is a good idea or not.
Many of these factors relate directly to the market – something which will be difficult to gauge if you are not an expert yourself. However, other factors relate to the jewelry piece itself or to the quality and weight of the gold, which you will be able to assess independently as you seek to get a clearer picture of the value you can expect.
Current market demand for gold
When pawning gold, it is important to remember that the transaction relies upon the forces of supply and demand. It may be that the customers of the pawnbroker you choose are not currently interested in gold items and the shop owner is finding it difficult to sell such pieces. In this case, the market demand dictates that you will receive a low price for the item.
However, your decision to pawn the gold piece might have come at the perfect time; a time when demand for gold is high among the shop’s clients. If this is the case, the price you receive will be high. This is why it is worth shopping around to find a pawnbroker who is able to give you a fair price for your jewelry.
Specific market demand for the jewelry piece
Although much of the value of the jewelry is related to the value of the gold itself and is calculated as melt value – i.e. the value of the gold after it has been melted down – it is worth remembering that the pawnbroker does not intend to handle the jewelry in this way. Instead, they will sell it on, as is.
This brings other factors into play in terms of supply and demand – the actual demand for the jewelry piece itself. Watches, tasteful bracelets, and chain necklaces, for example, are always in high demand and should get a good price. More avant-garde designs, or more specialized jewelry types, do not have such a broad appeal. With them, you may see a lower price, even if the value of the gold is the same.
Historical factors relating to the piece
They say that every piece of jewelry has a story. This is undoubtedly true for the original owners but how does this translate to value? Well, if the gold jewelry piece has some historical significance attached to it – for example, if it was worn by a famous figure in our nation’s history or was gifted to a relative by a celebrity – and you can prove this, you may find that the pawn value increases.
This may also be true if the piece of gold jewelry was designed or crafted by someone particularly renowned in the field. Again, you will need to prove this but you may get a better price for the item. However, it is worth remembering that for extremely valuable or rare pieces, it is better to take the item to a specialist auction.
The purity of the gold
The purity of gold is measured in karats, with 24 karats representing the highest standard of purity. Gold with a karat value of 24 will be at least 99.95% pure and will fetch the highest value. This is something you can assess for yourself ahead of time by taking the jewelry to be tested at a jeweler’s shop.
If you still have the original documentation from when the jewelry was purchased, this should also include details of the karat value, so you can asses the purity in this way also. The karat value specifically relates to the amount of gold in the alloy used to form the jewelry. For example, 10 karat gold will be made up of 10 parts gold and 14 parts another metal.
The weight of the gold
The physical weight of the gold is another way in which pawn brokers can assess how much the jewelry is worth, Gold weight is measured in DWT, or pennyweight. You can find out the weight by taking the jewelry piece to a jeweler’s shop for testing.
Again, the documentation you may have received when the jewelry was originally purchased will also contain this information. Bring the documentation to the pawnbrokers to help them accurately assess the sale value and the cash amount you will receive.
Current market value for gold
With the weight and purity of the gold established, the pawnbroker will then take these two factors and apply them to the current value of gold at market. Gold is a famously reliable substance in terms of value. Its stability is one reason why its value was used as the basis for many currencies for a great deal of time. However, reliability and stability are relative terms, and the value of gold is not, in fact, static or fixed.
This means that the price you receive when pawning gold may not necessarily be the same, year on year. It is important to get the value of the gold appraised in order to decide whether now is the best time to pawn the gold or whether you should wait until a more advantageous time in order to maximize the money you receive. You may also want to conduct some research to analyze the pricing trends for gold and to give you a better picture of when is the best time to pawn your jewelry.
The condition of the piece
As we mentioned above, the pawnbroker you work with is not going to melt the piece down and sell the metal on as gold in its purest form. Instead, they are going to sell the jewelry piece you hand over to be pawned. This means the condition of the piece is very important.
If the piece is unclean or has been poorly maintained, this is not going to be well received by buyers. The pawnbroker will reduce the cash sum they pay out in order to cover any cleaning costs. Similarly, if the piece is damaged, the pawnbroker will also need to reduce the amount they pay to you to cover repairs.
How complete the piece is
In many cases, the jewelry you hand over to the pawnbroker will be simple in design, with only one piece. However, some jewelry items will be composed of multiple pieces, all of which will need to still be attached together if you are to get the best price when pawning gold.
This is particularly true in the case of items such as charm bracelets, which may have a great number of intricate components all joined together. Do your best to ensure that all of the pieces are present and correct, and, in doing so, achieve the best possible value for your pawn loan.
How to Get the Best Possible Loan Value
There are many things that you can do to maximize the value of your gold pawn loan. We’ve compiled a few of the most straightforward and effective, right here, to help you get the best deal possible when you come to pawn your gold items.
Clean the items
We have already discussed how items which are in the best condition tend to have the best value. With this in mind, take some time to clean your gold jewelry piece before you bring it into the pawn shop.
Not only will this mean that the costs of cleaning and maintenance are not deducted from your potential loan value, but it also means that you provide a good first impression to the pawnbroker. This in turn will have a marked effect on the loan value you receive when pawning gold.
Act quickly after your appraisal
If you have received an appraisal and you are happy with the results, don’t delay. The value of gold is fairly reliable and stable as we mentioned above, but this does not mean it will stand still, so neither should you.
This is a case of striking while the iron is hot and maximizing the potential value of the loan you receive by capitalizing on a strong appraisal.
Choose the best time to pawn
If you do not need to get your hands on the loan amount right away, and if you are not happy with the amount your gold item has been valued at, it may be worth biding your time. While gold values may decrease from time to time, they also have the potential to rise as market forces act upon them. Waiting can sometimes be a good option.
This is where a bit of research can go a long way. If you see that gold values are currently experiencing a slump, use the expert market predictions to plan your strategy and aim to pawn your gold items when the price is high once again.
Look around for components and documentation
Before you take your gold item in to be pawned, spend some time searching around your home for any missing components or pieces of documentation. Documents may be able to prove certain historical factors that increase the value of the gold item when it is pawned. Finding missing components will help you to ensure that the item is complete, further optimizing its value.
Shop around for the best deal
Remember that the value of the pawn loan you receive when you hand over your piece of gold jewelry will only be a percentage of the total value of the piece. This is because the pawn shop will need to sell the item in order to make money from the transaction and to run their business effectively if you don’t repay the loan.
This is why it’s worth spending some time shopping in order to find the best deal for your gold, as well as finding a gold pawning specialist who really understands the value and can offer you the best price whether you are selling your gold or pawning it for a loan.
Are you ready to turn your unwanted gold jewelry into cash? Perhaps you want to learn more about the gold pawning process and how it can work for you in your specific situation? Get in touch with our team today to find out more.