Here are some things to consider and what the gold may be worth
Gold prices have been on the rise for a few years now, which is great news for those looking to sell the gold they own.
If you’ve ever considered pawning your gold, then you’re in luck – our article will highlight a few key things you need to consider before going to a pawn shop, as well as give you a good idea of some tips on how to calculate your gold’s value before you decide where to sell it.
Are you looking to sell gold in London? Do you have gold jewellery, gold coins, or gold bars that you’re looking to sell? Get in touch with Maxcroft today.
How to determine your gold’s value
There are a few ways to determine how much your gold is worth before heading to a pawn shop. Knowing the value of what you own is the best way to set realistic expectations of what you could borrow against your gold.
1: Know how pure your gold really is
Purity ratings for gold are as follows:
If the purity rating of your gold is less than 99.99%, it means that your piece has been alloyed with other materials – usually metals such as platinum, silver, and copper.
How can you tell your gold’s purity rating?
If you have no indication or prior knowledge of the purity rating of your gold, you can inspect the piece and look for engravings or markings. Markings will generally include the number & K ranking, which you can then refer to the grid above – 10K gold is 41.7%, 14K is 58.5%, 18K is 75%, and a 24K piece is 99.9% pure gold.
2: The weight
Purity is not the only factor to be taken into account. The weight of your piece matters as well. Generally, the heavier the gold the higher the purity rating but that doesn’t always apply.
How can you measure the weight of your gold piece?
Take away all the embellishments (if possible) and weigh your jewellery. Be sure to use scales that measure up to a tenth of a gram for accuracy.
3: The price you paid
If you are able to remember or confirm, the price you initially paid, you will be able to compare it to the current ‘gold per ounce’ market price. It is the spot price of gold that gives you the best indication of how much you can borrow against your piece.
How to calculate your fair market value for gold pieces?
Now that you are aware of the basics, it is time to head to a trusted pawnshop to see what agreement can be made to borrow against your precious metal. To ensure you get a fair price, we’ve given a breakdown of how you can calculate the fair market value.
Let’s assume you have a gold necklace, with a stamp that indicates your piece is 18K gold (indicating 75% purity). On further inspection, you can tell it has no embellishments and weighs 30 grams.
To calculate the approximate market value you would:
take the weight in grams – in this instance 30g
multiply it by 0.75
then multiply that by the current gold market price
30g x 0.75 x current market price of gold = value
At Maxcroft we offer our customers a fair and reliable service. We’ll always pay a fair price for gold and will look to be as honest and transparent with our valuations as possible.
Tips before selling or pawning your gold
Some tips to consider in finding the best prices:
Find a reputable pawn shop: It is always safer to trade with a pawn shop that has a physical location – being able to meet the team will give you time to get a feel for the people you are working with.
Finding a pawn shop with good reviews and years of experience will provide reassurance that you will get the best service and most fair prices.
Established pawnshops will also make the process transparent, easier for you to understand and be clear on the process in both selling & pawning.
Be aware of gold’s market value: complete your research. There are many sources on the internet that will give you an idea of what the current market value of gold is, how it has been tracked in recent days/weeks and even some predictions on how the price will change (though this is, of course, subject to opinion). Make sure you are checking a variety of credible sources including Mint Exchange and Market Insider.
Be confident in your approach & clear on your expectations: “confidence is key” is a mantra that applies to many areas in life and the same applies when negotiating the price of gold too.
Arm yourself with the necessary information and data to give you confidence in your approach. Being realistic in what price you expect will also make the process simpler & more enjoyable for you.
Are you interested in Selling Gold and Valuables in Essex?
Maxcroft has over 40 years experience, offers outstanding service and issues loans against assets & valuables.
If you’d like to discuss an item that you are considering selling, take a look at our Gold and Valuables website page.
Get in touch
Pop in to our offices at 632 Eastern Ave, Ilford Essex IG2 6PG
If you’d like to discuss an item that you are considering selling or pawning then please call or visit us and we’ll be happy to help.
We’ll be happy to answer any questions you may have.