How Pawn Shops Value Gold
Weight of the gold you want to sell
Your gold’s weight plays a crucial role in its overall value. Pawn shops use three different measurements:
Purity of the gold you want to sell
The next critical factor when considering the value of your gold is the karat purity of the gold you are selling. Pure gold is considered 24 karat gold plum. From this there are three major karat purities that pawn brokers use:
- 18 karat gold = 75% purity of 24 karat gold
- 14 karat gold = 57.5% purity of 24 karat gold
- 10 karat gold = 41% purity of 24 karat gold
The purity of the gold is directly proportional to its value. The purer the gold is the greater its value.
The daily melt value of gold
The third critical key factor in valuing gold is the daily melt value. The global market dictates the melt value of gold on any given day. Pawn brokers use this number to calculate a reasonable offer to you based on the maximum amount of money the broker will make if they melt your gold. So when gold prices go up, the amount a broker can offer goes up. When the price goes down, the offer subsequently goes down as well.
Once you have considered the three key factors in gold valuation, then there is the broker’s reasonable need to turn a profit. Pawn brokers will usually offer a percentage of the maximum melt value that they can turn on your gold.
All things considered – selling your gold at a pawn shop is one of the best and easiest ways of selling valuables where you can be mindful of the negotiating process, and truly find the most return for your needs.
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