What factors do the pawnbrokers evaluate to determine the value of gold?
Gold is one of the biggest assets to own and is considered as a safe investment. This is because the price and value of gold keeps fluctuating and most of the time, the value keeps on increasing. Even if you’ve inherited gold jewelry from your grandparents, it’ll be valued based on the current market price of gold. In other words, the value of gold can never depreciate for a prolonged period of time. Even though there can be a slight downward trend in the price, it goes up very fast. These precious assets support us during our tough times. Financial crunch is an unavoidable situation and might happen due to various untoward events like loss of income. For a very long time, people turn to pawnshops for getting quick cash in exchange for gold. This is not a new trend. Exchanging gold or other precious jewelry for cash has been a common transaction for a very long time. But the question is how Melbourne pawnshops determines the value of your item. There’s a specific manner in which the value of gold is determined.
Factors evaluated by pawnbrokers to assess gold value:
If you’re thinking whether to pawn your gold jewelry or not; take a look at factors to know how pawnbrokers evaluate the authenticity of gold.
- Purity of the gold– The first thing that a pawnshop will do is to evaluate the purity of the gold. Certain jewelry stores put a stamp on the jewelry as a logo to prove the clarity of the gold. Carat is a unit of weight to measure the purity of gold. The popular one includes- 18 carats, 20carats, 24 carats, etc. The purest form of gold is the 24-carat gold. Before stepping foot inside a pawnshop, you need to access the estimated value of the gold in advance so that the brokers don’t mislead you or offer a lower value.
- Weight of the gold– Next to the measurement of clarity of the gold, the pawnshops will measure the weight of the gold. The price is determined as per the weight of the gold. So the pawnshops will first determine the current market value of gold and then they’ll offer you a price. Besides this, both the consumer and the pawnbroker have to constantly keep an eye on the price because it fluctuates very often. This is to ensure that you get the right value based on the prevailing price in the market.
These are the two ways by which your gold price will be determined. But to be on the safe side, you need to consider several things to ensure that the right price has been offered to you.
- Keep an eye on the weighing scale when the gold is measured. Remember that gold is measured in Troy or grams but never in ounces. Make sure that the pawnshop uses the right weighing scale for measurement.
- Separate the gold with different carat.
Besides this, as a consumer, it’s your job to find out the most reliable pawnshop or you might lose all your money!
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