Many people are caught between the idea as to whether they should sell their gold to a pawn shop or to a jeweller. Who can offer them with a better price for their gold?
Gold is traded in the open market almost 7 days a week and 24 hours a day. Gold’s price is never fixed; it always keeps on changing depending upon the International markets. The most important thing is you get the same price for gold no matter which country or place you wish to sell it. The International price for gold remains the same across all the countries of the world.
It is precisely this unique quality of gold that has one universal value, which everyone uses for estimating the price of gold in order to determine exactly how much should be paid to buy a certain quantity of gold.
Therefore, it hardly matters if you go to a jewellery shop or to a pawnbroker because everybody calculates on the same basic value of gold. Due to this, generally public gold buying market is usually quite steady and constant.
How much will the pawn shop and jeweller pay for the gold?
This is indeed an interesting question. Well, it depends!
It depends on the pawn shop as to how much money they are prepared to spend for buying gold from you. Usually, a majority of the pawnbrokers will give anywhere between 50% and 75% of the real gold value. The reason they can’t give you the full value is –
- Pawnbroker buys gold so that they can sell gold, so if they can’t make some profit out of it, it doesn’t make any sense for them to get involved in the business.
- Gold price tends to fluctuate as per the International market. So, in case the price falls, they don’t want to incur a loss when they go out for selling gold.
Jewellery stores and pawn shops workout similarly when it comes to determining how much money they should pay for the gold. Thus, both of them will be offering you the same amount of money, however, at a pawn shop, you can even take a loan against your gold and at the end of the loan period, you can get back your gold by paying the loan amount along with interest.