Posted on: 27 October 2015
When people find themselves in a situation where they need some money in a hurry, it's common to turn to older gold and silver jewelry for answers. Because of the nature of precious metals, it's easy to turn those assets into useful cash. However, it's also common to wonder if you got the best possible value for your items after your transaction is completed.
Since the choice often lies between pawn shops and gold stores, it's important to understand the difference as it applies to what matters--your payment. This will place you in a position to make the best possible choice, given your set of circumstances and the item in question.
Gold Store Payments
At a gold store, the value you receive for your precious metals is usually linked to the current market value. This value fluctuates, and is based on the weight of your item. Often, the store will offer you a percentage of the current market value--allowing them to make enough of a profit to continue to operate their business.
However, the market rate on gold is based on pure gold. If your jewelry is not 24 karat gold, you'll need to calculate how much actual gold you have. Fortunately, if you weigh the item and use a calculator like this one, you can easily determine the market value for your gold.
Pawn Shop Value
A pawn shop typically doesn't tie their payment to the market value of the metal and gemstones. Rather, they take note of the value they think that a customer would pay to buy it from their store. This means that your item is typically worth more to a pawn broker than it is to a gold store.
That said, the margin at a pawn shop is much higher than a gold store--due to the fact that they have to display the item and wait for a customer. They typically pay 40-70% of retail price as a result.
Which Should You Choose?
The answer to this question is found in the nature of your jewelry. For items that are plain, such as men's wedding bands, there is little aesthetic value to the metal and a gold store is a perfect choice. For more ornate jewelry with gemstones and collector's value, you might find that a pawn shop pays you more. However, since their markup is so high, you'll find that gold stores often pay more--even for higher priced, collectible pieces.
In practice, the best option is to go to a gold store first and obtain a quote. Then, if you choose to try the pawn route, you'll know right away whether or not that process will be worth your time and effort. Contact a company like Advance U Cash to learn more.Share