How much do pawnbrokers pay for 1 gram of gold

There are different ways to exchange your gold for cash. Pawnshops offer a unique way to get cash for gold without selling but using the gold you have as collateral for a short- term loan. It also provides the option for you to sell your gold if you have no more use for it. Before you head off to your nearest pawnshops you should know what pawnbrokers pay for a gram of gold. 

There are three basic things you need to know about your gold before you hand it over to a pawnbroker: 

  • What is the purity of your gold? 

You can find out the purity of your gold by simply looking for hallmarks engraved in a discrete spot. The purity of gold is expressed in karats. 

The purest gold can ever be is 99.9% and that is expressed as 24 karats. Pure gold is too soft and easy to damage which is why metal alloys are added to make it more durable. This is especially the case with gold jewellery which is usually made up of 75% or 18-karats, 58.5% gold or 14-karats and 37.5% or 9- karat gold. Gold bullion coins and bars are the types of gold that are made of 99.9% pure gold. 

You should bear in mind that pawnbrokers who are interested in gold will mostly give you a price based on the gold and exclude diamonds and other gemstones. The pawnshop night value these separately. 

  • How much does your gold weigh? 

Weighing your gold jewellery is important. It is less complicated to weigh gold without any embellishments. Pawnbrokers will use a more accurate scale like a jewellery scale that weighs up to 1/10 of a gram.

  • What is the current market price of gold?  

The price of gold on the market is referred to as the spot price. This price fluctuates all the time, so it is important to check whether the markets are going up or down.

With this information you can more or less determine what a fair price should be. Shop around for a reputable pawn shop and choose one that offers the best price for your gold.  

How do pawnbrokers calculate the value of your gold?

Let’s illustrate how pawnbrokers calculate the value of your gold: If you have a bracelet with a 18 k hallmark, it means the gold is made with 75%. If it weighs 30 grams, you can calculate what a fair price should be by multiplying the purity 75% or 0.75 with 30 grams and then multiply this with the market value of gold per gram.

Most pawn shops pay anything from 75% of the actual value of the gold jewellery. There are others that may pay more and this is why you should get quite from different pawn shops to find one that offer good prices.

There are two options that pawn shops offer: loans or an outright sale. 

Does a pawnbroker pay more when more pawning or by selling? Pawn brokers are more interested in loans than in buying. This is because pawnbrokers stand to make more from the transaction because of the interest and transaction fees that are added onto the loan amount. A sale is a on time transaction. When you sell something to a pawnbroker you have no further obligations. The pawnbroker has to consider whether what you are selling will be will be quick to resell or not. You don’t really have to sell something if you are not ready to part with it and you can still use it again should you find yourself needing cash somewhere in the future.