Selling gold: Pawn shop vs gold buyer

There are so many adverts trying to tempt us into selling our gold as the time is right and you can release so much cash, but are these gold buyers the right people to sell your gold to? Could your local pawn shop be the better option? Yes, read why.

How is selling your gold different when selling to a gold buyer vs a pawn shop?

There are several key differences between pawn shops and gold buyers which are mainly around the process and the amount offered.

The processes are very different as a pawn shop is very personal and completed face to face in a single simple transaction. All you need to do is visit with your item and get it appraised. They will make you an offer and you can negotiate. You will be paid straight away.

A gold buyer tends to operate by mail, and you will need to provide them with a photo of the piece first. You will be sent a mailing label and asked to package your item and post it to them. They will appraise the item and send you a check for it. If you aren’t happy with the value, you can ask them to return it, there is no opportunity to negotiate. The whole process can take days or weeks.

The value offered for your item can vary depending on the buyer, but all buyers use the same gold values as a guide. As an indication you can typically expect gold buyers to offer lower amounts sometimes as low as 40% of the value, and pawn shops typically are higher up to 70% of the value.

So, as you can see a pawn shop will tend to offer a high amount and be much quicker. Other differences include that a pawn shop will allow you to negotiate, and they will also offer the option of a collateral loan.

Signs to be aware of

There are many fraudulent businesses out there taking advantage of people and you should be cautious in which you choose to sell your gold. Many are set up and vanish before they are caught but make plenty of money in a short amount of time by advertising heavily and pressuring people into acting fast.

When choosing a company do your research and check whether they are part of a regulated association or licensed.

You should also research what you are selling so that you have the information you need to negotiate on price.

If you are looking to sell gold in the New York City area then you should visit GEM Pawnbrokers who have been a trusted part of the community for over 70 years. We have 24 conveniently located branches across the New York City area that will offer you a warm welcome and a fair and competitive price for your gold. Come and see us and find out what your gold is worth.