You want to sell your scrap gold to a local pawnbrokers. You wonder is it a profitable solution and what influences the price. The first step is determining how the gold value is determined to decide the cost and whether it is worth selling to a pawn shop. 

Determining the Value of Gold 

The best place to start selling your gold jewellery is at a pawn shop. The pawnbroker knows the value of your gold by calculating it. First, they identify the gold’s purity and determine its weight. Then they calculate the purity of the gold with the weight times the current gold price per gram less their margin. 

The Purity of the Gold 

When you look at gold, it is measured in karats to determine the purity and it can affect the pawnbrokers’ offer. The majority of gold jewellery only holds a percentage of gold ranging from 9-22 karats. For that reason, your least expensive gold pieces are 9 karat only has 37.5% pure gold. The most expensive gold is 24K as it is the (99%) purest gold manufactured. More so in China than in Australia or USA.

The History of the Gold Jewellery 

The price of your gold jewellery pieces can also be influenced if you have something valuable with stones or antique gold. Still, if you plan to sell your antique gold, it helps to provide supporting documents with them. If the pawnbroker can sell it in his window and not melt it down you can expect to receive a higher price than scrap gold. 

The Current Gold Market Price 

When the economy is stable, the gold price is also stable. Yet, when inflation is high and the economy struggles to stabilize, it can affect the gold price. Hence when the economy is bad the more you will receive for your gold. As the local pawnbrokers rely on real-time gold market pricing you will receive more money for your gold jewellery during these times.

Still, the experts all agree that the gold supply is limited. While there are still undiscovered gold ores, the mining grounds are depleting fast. Hence, wy people hold onto their gold as a store value, it also increases and triggers those increasing prices. 

Is Selling Your old Gold to Pawnbrokers Profitable?

Yes, you can profit from selling your old gold jewellery to a pawn shop. This is because you can expect about 80-90 per cent of the gold value. Pawnbrokers also use different tests to authenticate your gold and have the experience to interpret the results accurately. After the pawnbroker finishes testing your expect to receive fast cash right there and then. 

Should You Sell new Gold Jewellery to a Pawnbroker

You can, but you may only get a fraction of the price due to the manufacturing costs involved to make new jewellery which you won’t get back if you scrap it. Another option rather than selling your gold jewellery is to take loan against it instead.

As the pawnshop offers you a convenient way to sell your gold. Visit a local pawnbroker today, as they will make you a great offer.