Pawn Shop or Jewelry Store: Where to Sell Gold?

Irrespective of where you go, everyone works with similar basic pricing for precious metals. Gold has a live market and hence its price changes daily.

The buyers of gold determine the price depending on its karat and weight and then offer a price a little less than the present market value.

On average, the gold seller receives around 20 to 70% of the value of their jewelry from pawn shops while jewelry stores pay you anywhere from 40 to 80% of the metal price.

So, there is a slight difference in the percentage, but the spread for pawn stores is concerning.

But who offers more?

Well, pawn shops are in the business of pawning and jewelers sell.

Pawn stores work in heavy volume and they have a lot of inventory and they may make a low offer to see if you are ready for it. But, if you don’t agree, they may raise the offer.

But who will tell you that this is the best you can get for your jewelry?

Pawn stores buy everything right from kitchen sink to diamonds and gold, hence they may not give you a precise valuation. You can read more here about the best pawn stores and how they work.

Jewelers on the other hand are masters of the resale games. Their aim is to buy jewelry from you at a lower rate and sell it at a higher rate to someone else.

They may be selective about what you are selling them and also they may limit the money they can offer you.

However, what similar between both the stores is that they will price their gold items as per the present price of gold. They monitor the market and price the item accordingly.

However, it is said that pawnbroking businesses offer better prices to the customers that they would get at a jewelry store.

So, if you are willing to get the best deal for your jewelry, then it is suggested that you get the quote from both the places, compare the prices and then go for the offer which is best for you.

Usually, pawn stores win this comparison.