Gold and Silver: How Pawn Shops Determine Value
It’s not uncommon for people to put up their silver and gold for sale to make a little extra cash. However, it’s hard to know how to sell silver or gold to get the best price.
If you’re considering putting up your gold or silver for sale at a pawn shop and you want to get the best price possible, you’ll need to know how pawn shop gold and silver prices are calculated.
Keep reading to learn about the factors used to determine how much gold and silver are actually worth.
Understanding the Basics: Weight and Purity
One of the most important factors in determining the value of gold and silver is weight, typically measured in grams or troy ounces (31.1035 grams). The more grams of silver or gold you have, the more it will be worth.
Another variable in the value of pawn shop gold and silver is purity. This is basically the amount of silver or gold in the item. Most jewelry isn’t pure silver or gold.
The purity of pawn shop gold is measured in karats (K). The most common gold purity levels are 24K (100% pure gold), 18K (75% gold), 14K (58.5% gold), and 10K (41.7% gold). If you decide to put up your gold for sale, you can check the items for purity markings.
The purity of pawn shop silver is measured in fineness. Most commonly, jewelry is made of sterling silver, which is 92.5% pure. If you want to put up your silver for sale, you can check these items for markings as well. Silver will be marked with the percentage using a three-digit number. Sterling silver will be marked with 925 (the percentage minus the decimal point). Other common markings include 900 (90%) and 800 (80%).
Why does the purity of pawn shop gold and silver matter? The pawn shop is paying you based on the value of the gold or silver. If your item is 100% pure gold and the weight of your item makes that much gold worth $100, that’s the value. If your item is only 75% gold, though, then it’s only worth a percentage of the market value.
Market Prices and Fluctuations
The value of gold and silver at pawn shops changes with market factors such as supply and demand. This market value, known as the spot price, is constantly monitored by pawn shop experts. When you sell your items, the current spot price helps determine what you can receive. While prices may remain steady some days, they can shift significantly on others. Understanding these trends ensures you get a fair and accurate offer for your gold or silver.
For example, if gold prices have been trending upward, the pawn shop may be willing to pay a little more. If they’ve been trending downward, they may pay less, knowing that when they sell the item, it will likely be worth less than it is right now.
Assessing Condition and Form
The condition of pawn shop gold and silver also affects the price. If the item is worn, scratched, or broken, the price will go down. Certain forms of gold and silver are worth more than others. For example, two coins with equal amounts and purities of silver may be worth wildly different amounts if one coin is rare. Jewelry in certain styles may be more popular and therefore have a higher resale value. Factors like these can affect the price significantly.
Do your research beforehand to understand the factors that affect the price of your specific item to ensure you negotiate with all the information and get the best value.
Ensuring Fair and Transparent Appraisals
When you enter a pawn shop, they should be professional, willing to answer questions, and upfront about their process. They may want to test the purity of the item(s) to ensure authenticity. They’ll weigh them, then tell you what they found in their evaluations and offer a fair price based on the objective factors above. Some pawn shops will allow you to negotiate, and some will remain firm. If you don’t believe the price is fair, you can check more than one shop and compare offers.
At Mo Money Pawn Shop in Phoenix, AZ, walk-ins are always welcome to get a free, no-obligation appraisal. Feel free to contact us with any questions.
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