Pawnshops have been around for over 3,000 years. They are probably mankind’s oldest financial institution. They have been trusted sources by everyone from Kings and popes to paupers. They have funded ambitious voyages and helped prop governments. When you have a pressing issue and you need cash urgently a pawn shop is the best place to go. Whether you have an old phone you no longer use or TVs or gold jewellery that is worth a pretty penny you should consider pawning it.

Before you visit a pawnshop with your jewellery, you should have some idea of what your jewellery is worth. It is important to know what the value of your gold jewellery is before you try to pawn it. This way you will know if you are getting a fair deal or not.

What are the basics of pawning or selling gold jewellery to a pawnbroker?

Gold used to make jewellery comes in different grades or karats. The purest grade for gold is 24 karats. However, this is too soft and jewelers prefer to use gold that is more durable. This is why most of the gold used is made from either 10 Karat which contains 41.7% pure gold, 14 Karat which is 58.3%.

The authenticity of gold or the karatage is usually marked somewhere on the piece of jewellery. If you can’t find the mark, a pawnbroker will have more ways to validate the grade of gold. They can conduct a variety of tests to ascertain that the piece you have is real gold and to determine the grade or quality of gold. There are simple tests like:

  • The Magnetic test

Gold is not magnetic and it will not be attracted to a magnet if you run a high powered magnet over it.

  • The Acid Test

Many people that deal with gold use the acid test. This involved making a small mark on the gold item and applying a drop of citric acid. If the acid react with the gold then, it’s not real gold. Gold does not react with citric acid but other metals that are used.

What type of gold jewellery do pawnbrokers accept?

Different pawnbrokers have different preferences. If you take your item to a variety pawnbrokers, you will realize that different pawnbrokers like certain goods better than others. If you have gold to pawn the best thing is to take it to a pawn shop that deals a lot with gold jewellery than one that deals with electronics and other things.

So, which gold pieces will get you the most money?

24K gold is used to make investment grade gold bullion that is fashioned either as coins or bars. Gold bullion coins have and bars fetch more than 10k or 14K gold pieces. Some gold pieces fetch the most amount because they are vintage or once belonged a historical personality.

Unlike gold buyers who only pay for the gold content and not the precious stones, pawnbrokers actually value.

If you have precious stones in your jewellery, this does not automatically bump the price of your gold high, especially if the stones are rare.