When looking to sell your gold, it’s tempting to go straight to a gold buyer. Since they advertise that their specialty is in gold, it’s obviously the best place to go, right? This couldn’t be any more false. Gold buyers actually take advantage of this way of thinking, leaving you with less than you would have gotten if you went to a pawn shop instead.

An Incomparable Difference

With a little bit of insight, you can avoid getting shorted for selling your valuable gold and receive what you actually deserve. First, you should know the differences between pawn shops and gold buyers so you understand why one is more beneficial than the other.

Spot Prices vs The Payout

Both pawn shops and gold buyers refer to the spot price, or current value, of gold when giving you an offer. If both places look at the same info, then what’s the problem? Despite the hard facts, gold buyers will give you a significantly low percentage of the spot price, oftentimes as low as 40%. Pawn shops, on the other hand, will offer up to 70% of the spot price making the differences between the final numbers clear as day.

Willingness to Negotiate

A major appeal with pawn shops is in their flexibility in pricing and how they deal. Because of their ability to negotiate, they’re able to offer a much higher price than gold buyers who typically have a “take it or leave it” attitude. Another upside to pawn shops is the option of opting in for a collateral loan along with accepting straight cash.

The Selling Process

Although some cash-for-gold businesses advertise the convenience of mailing in your gold from the comfort of your home, this is actually a much more tedious process than just taking a quick trip to the pawn shop. When you go into a pawn shop, you can be in and out with a wad of cash in a matter of minutes whereas the mail-in process can take weeks and you won’t even get the best price by the end of it. Not to mention, it could be a scam that you won’t be able to recover from.

Pawn Shop Process Cash-for-Gold Mail-In Process
  1. Get appraised
  2. Negotiate
  3. Get paid
  1. Send in a photo of your gold
  2. Wait for a shipping label
  3. Send your package
  4. Wait for an appraisal
  5. Wait for your check

Another risk to consider when sending in your gold is that the return window could start the day the check is sent, not when it’s received. This means that by the time you see the amount on the check and decide that you want to change your mind, it could be past the date for your refund. If you already sent in the jewelry, it could already be melted down beyond repair and you’ll be left with regret and only a small check to show for it.

Gold Buyer Beware

You may notice that many “We Buy Gold” businesses come and go in the blink of an eye, and they rely on heavy advertising to catch your attention. This is because with many businesses like this, their goal is to swindle you and leave before any action can be taken. Some of these tactics are addressed in the Commodity Futures Trading Commission’s (CFTC) Fraud Advisory page built to warn potential victims of signs to look out for to avoid being conned by shady businesses. This is such a common issue that the organization even had to create a RED list of unregistered businesses for you to steer clear from.

Signs of Fraudulent Businesses According to the CFTC
  • Pitches made by people who call themselves “metals dealers” or “merchants”
  • Creating a false sense of urgency by claiming limited supply
  • Precious metals transactions are not compliant to regulations by official groups such as the National Futures Association or the California Pawnbrokers Association
  • There’s difficulty in verifying the company’s license
  • The salesperson cannot provide a way to prove their licensure from a government agency

When going to a gold buyer, there are too many risks involved since there are so many fraudulent businesses on the loose. When you go to a reputable pawn shop, you don’t need to dig deep to confirm their credibility. Many shops stay in the same location and have candid online reviews from past customers.

How to Get Top Dollar

What Do You Actually Have?

In order to know that you’re getting a fair price, you need to know what’s in your hands. You can get a general idea by looking up live spot prices which will give you a starting point at which to negotiate your gold piece. By doing this little bit of research, you won’t have to go into the store completely blind.

Who Can You Trust?

How do you go about finding a pawn shop you can trust? Looking up online reviews is a great way to gauge a shop’s credibility. You can also see how long they’ve been in the area to prove their success since shady stores are likely to shut down after a short while. Some businesses put up an online shop which you can use to compare pricing before you even walk in.

Start Negotiating

Remember, pawn brokers expect you to negotiate. It’s a big part of their job to discuss a reasonable price for both parties since each item varies and every customer is in their own unique financial situation. A good pawn broker is able to take all of these factors into consideration and settle on a reasonable price so you’re guaranteed to be happy and come back for future business transactions.

Selling in Baldwin Park

Where’s the best place to sell your gold in Baldwin Park? The appraisers at Azusa Pawn are trained and licensed to legitimately buy and sell gold in any shape and form. You’ll be presented with the fairest prices in the area along with flexible options in both collateral loans and cash offers. With over ten years of experience in helping customers with great satisfaction, you’re guaranteed to leave happy with a full wallet. If you have any questions, call (626) 334-2274 today to speak with an expert!