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What do you need to know to pawn gold for cash?
When pawn shops buy gold, most of the time they are going to pay between 50-70% of the spot price of gold, or at least something very close to that. The can’t afford to pay 100% of spot of course because in order for them to turn around and get money out of the gold scrap that they sell they have to refine it which of course comes with it’s own costs, fees and taxes associated with that as a service.
Should you buy jewelry at a pawn store?
One thing to understand is that most of jewelry you buy is usually used, which has been turned in a new form by melting and purification. So to some sense, you are always using used jewelry. At a pawn store, the jewelry which is at display is usually in a very good condition as the ones which are not in good condition are send to refinery by a pawn shop. A pawnbroker usually offers a jewelry with a 20% on top of the stock price. So for example, if the stock price for a bracelet is 100 dollars, the pawnbroker will offer 120 dollars. This is really good when you compare it to the fact that most of the big chain shops would actually charge 2 to 3 times of the stock price. Hence buying a perfectly decent piece of jewelry at lower price, one would say that's the best thing possible.
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