Gold is an excellent investment because its value remains relatively stable over time. Additionally, it’s easy to find a buyer when you want to turn your gold investment into cash. Whether you have gold jewelry, coins, nuggets or bars, you should consider selling gold to pawn shops rather than gold buyers. Here are things you should know before selling your gold to a pawn shop.
How Much Will a Pawn Shop Pay for Your Gold?
How much money you receive for selling your gold to a pawn shop will depend on several factors, including:
- The fineness and quality of your gold or gold item: You should know that gold is rarely 100% pure gold because pure gold scratches easily. Gold’s purity is denoted in karat, with 24-karat gold being the purest. This means the higher the karat of gold you have, the more money you will receive.
- The current gold prices: Gold prices might fluctuate slightly due to market forces. There are numerous resources that let you track gold prices online. You should sell your gold when the market prices are on an upward trajectory.
- The pawn shop’s profit margins: A pawn shop is a business that has to pay rent, utilities and employees, and generate some profit at the same time. While a pawn shop might sell the gold they have at market rate, they won’t purchase from you at market rate, as they need to make a profit when they sell your gold. However, you can expect a fair purchase offer from the pawn shop.
- Whether or not the gold item you have is easy to resell: Not all gold items are easy to resell. It can be hard to resell gold items that are personalized because not everyone has the same taste as you. Therefore, your personalized gold jewelry will attract a lower purchase offer than a similar item that’s not personalized.
Pawn Shops vs. Gold Buyers
If you are still on the fence about whether you should sell your gold to a pawn shop or a gold buyer, here is a comparison:
- Both pawn shops and gold buyers rely on the current gold prices to make an offer.
- Pawn shops offer better prices than gold buyers. While gold buyers generally pay about 40% of the current market price, pawn shops can offer up to 70%, depending on the gold item you have.
- Moreover, you will get more options at pawn shops compared to gold buyers. Pawn shops allow you to get a loan with your gold item as the collateral rather than selling it, while gold buyers don’t have this option.
Do You Want to Pawn Your Gold in Paola, Kansas?
You are welcome to pawn your gold items at Harrison Street Pawn and Gun. We are a reputable full-service pawn and gun shop that has been operating since 1985. We are located in Paola, and we purchase, sell and trade all kinds of items at our shop. We have pre-1899 and modern-day guns and ammo, jewelry, musical equipment, lawn care equipment, power tools and more. Call us today for any pawning or purchase inquiries you have.