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Selling your Gold in a Pawn Shop

BY Rebecca | 21 August, 2015 | no comments

Image by motoyen via Flickr

When you sell your gold in a pawn shop, it is not quite as straightforward as handing over your gold and getting back cash.

Over the years, Pawn Shops have been given a bit of a bad reputation to be places for desperate people and criminals. However, these shops are prevalent all over the country, and many people from all walks of life will regularly use the services of a pawn shop.

Pawns shops are great to sell something of value, buy something, or to borrow money secured against their valuables. If you want to sell gold bullion at the best price using a pawn shop, just make sure that you ask them relevant questions before agreeing to sell your gold.

The Value of Gold

You will need to ask the pawn shop what their current rate for buying gold is, and how often this is updated. The price of gold changes daily, so you will want to make sure that they update their prices regularly. Most pawnshops will update their buying and selling rates at least once a day. You will also need to see what rates of commission they charge, as these do tend to vary between different shops, although not a great deal.

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What type of Gold can you sell?

A lot of gold buyers will take all types of gold and offer you a price based on the purity and weight.
 

  • Gold Bullion
  • Gold Coins
  • Gold Jewellery
  • Broken Gold Jewellery
  • Gold Teeth

 
A lot of pawn shops will let you sell just about any form gold, as they will have the gold smelted down eventually. During the smelting process, all of the impurities will be removed, leaving them with 99% pure gold, which will then be sold on to jewellery makers or gold merchants. It is always an idea to speak to different pawn shops to make sure that you get a correct evaluation of your gold. There are some unscrupulous people out there, so it is always best to err on the side of caution.

Ownership of the Gold

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If you are selling gold bullion, then your gold may have serial numbers which can be traced. If not then you will have to sign a declaration confirming that the gold is your property. The reason for this is to help combat people who sell stolen goods, so that if anything is traced back to a certain shop, they have done their due diligence to ensure their purchase is above board.  If you do not own the gold and sign this declaration, then you could end up finding yourself in a spot of bother with the law!

The great thing about pawn shops is that you do not have to sell if you do not want to; you can always secure a short-term loan against your gold if you need some quick cash. Just make sure that you shop around and use the services of a fully licensed and accredited pawnbroker.

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