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How Pawn Shops Value Gold

by | Oct 14, 2020 | Blog

There are three key factors that pawn shops take into consideration when they buy gold. They are:

Weight of the gold you want to sell

Your gold’s weight plays a crucial role in its overall value. Pawn shops use three different measurements:

  • Grams
  • Ounces
  • Pennyweights

Purity of the gold you want to sell

The next critical factor when considering the value of your gold is the karat purity of the gold you are selling. Pure gold is considered 24 karat gold plum. From this there are three major karat purities that pawn brokers use:

  • 18 karat gold = 75% purity of 24 karat gold
  • 14 karat gold = 57.5% purity of 24 karat gold
  • 10 karat gold = 41% purity of 24 karat gold

The purity of the gold is directly proportional to its value. The purer the gold is the greater its value.

The daily melt value of gold

The third critical key factor in valuing gold is the daily melt value. The global market dictates the melt value of gold on any given day. Pawn brokers use this number to calculate a reasonable offer to you based on the maximum amount of money the broker will make if they melt your gold. So when gold prices go up, the amount a broker can offer goes up. When the price goes down, the offer subsequently goes down as well.


Once you have considered the three key factors in gold valuation, then there is the broker’s reasonable need to turn a profit. Pawn brokers will usually offer a percentage of the maximum melt value that they can turn on your gold.

All things considered – selling your gold at a pawn shop is one of the best and easiest ways of selling valuables where you can be mindful of the negotiating process, and truly find the most return for your needs.










FKTRADE CO is an independent luxury dealer and is not sponsored by, associated with and/or affiliated with any of the brands listed on this website. FKTRADE CO only sells pre-owned watches and luxury and provides its own warranties on the items it sells that are not covered under a factory warranty. All brands are registered trademarks of their respective owners.