There are times when you need money immediately. Bank lending takes some time, and the money you’ll get is most likely due past the date you need it. Luckily, there is another way that you can get cash immediately, and it’s in the form of pawnshops.

Pawnshops operate on a small scale. The rules are pretty simple: you take any valuable item and bring it to the shop to pawn it. In exchange, you will get the money, and the shop will hold on to your item for the time being. At this point, you’re also tasked with earning enough money to pay back your item. If you cannot pay for it, the shop will put up your item for sale.

What exactly can you pawn? As long as it’s anything you own, you can use it. The most commonly pawned items are usually jewelry, even the ones that are considered scrap, such as scrap gold jewelry.

To some people, scrap gold jewelry is pretty much useless. However, they also don’t know that scrap gold jewelry can still fetch you a sizable sum in a pawn shop.

How exactly does one go about selling their scrap gold jewelry? In this article, we will shed light on that very subject. Read on below to learn more.

The Price of Gold

To determine the best price you can get for your scrap gold, you should understand the gold market. Nowadays, the price of gold is measured by the cost of gold by the ounce. A single ounce of gold could go up to more than $1000, which is already a pretty high price for something small. The cost of gold fluctuates every day, so it’s best to consult multiple updated sources for the price of gold.

As for the factors that determine the price of gold, other factors such as a country’s economic status, the value of currencies, and worldwide demand for gold come into play. You can also choose to look them up to determine your scrap gold’s value.

Finally, the spot price of gold is also something to note. The higher the spot price, the higher a gold piece is in value. Aside from that, spot prices also vary depending on countries globally, so once again, it’s best to do research first.

Pawing Your Gold

With the fundamentals of the gold market out of the way, you must now know some tips on what to do with your scrap gold if you plan on pawning it:

#1: Determine Its Karat

The karat is the value that determines the purity of gold. Pure gold is worth 24-karat, and it can fetch hefty prices when pawned. Other gold pieces are also valued as karats, but some aren’t pure gold. These are 10-karat, 14-karat, and 18-karat gold, respectively. While not as refined as a 24-karat piece, they can still be pawned for a nice amount of money.

#2: Weigh It

The weight of your scrap gold is a significant factor in determining its value, and the best part about it is that you can do it on your own.

To start, weigh your scrap gold and get its weight in grams. If you have a good source, you should look up the current market price for a gram of gold and multiply it by the weight of your items, also in grams. Finally, divide its total weight by the purity percentage based on its value in karat. This method will give you a pretty accurate estimate of the value of the gold you intend to pawn.

#3: Clean It



You will need to have your scrap gold cleaned first. If you present it to the pawnshop in a weathered, unmaintained state, the shop would think that the gold isn’t taken care of, and the money you’ll get would be considerably less. You can always clean it yourself with warm water and soap or go to a professional to have it cleaned for better results.

Conclusion

Pawning off your scrap gold jewelry may seem an easy task, but there are other factors to take note of as well. If you know the basics of the gold market, you’re most likely to get a more significant sum because you know how selling gold works.

Pawnshops are an excellent place to go if you need money immediately, as long as you have a valuable item to pawn. If you’re looking for a pawn shop to sell or pawn some of your unwanted items, River City Pawn Shop is the shop for you! Aside from our pawning services, you can also either buy from us or sell to us. Contact us today to learn more!