When it comes to buying or selling gold and gold jewelry, you might expect that every place would be the same, right? After all, it seems like everywhere you go, gold buyers are using every advertising model to offer to buy your gold – television and bus ads, junk mail, you name it. But, should gold buyers be the first place to call when it comes to getting the best deal? You may be surprised to learn that the better deal is often found at your local pawn shop, and not the gold buyers plastering their company names all over town!

What’s the difference between a gold buyer and a pawn shop, anyway?

When it comes to buying and selling gold, pawn shops and gold buyers are remarkably similar in how they deal with the precious metal. However, although the differences may be slight, they can make a big difference in price and experience.

Among the things they have in common is that both gold buyers and pawn shops work off the current price point for precious metals. The live price for gold is also referred to as the “spot price” and continuously changes. You can check it out here. In fact, anywhere you go in the world and try to buy or sell gold, your buyer or seller will be working off of the spot price.

Here is where the similarities end and where many sellers would be wise to give their local pawn shop a second look. After determining the spot price, it is up to the buyer to figure out how much of a percentage of the price to offer you. Some buyers will give you a high rate, while others will look for every avenue to provide you with as little as possible.

Despite there being little official data on how much of a percentage each buyer tends to offer, we often hear from our customers that gold buyers tend to offer around 40%. Our customers are also often pleasantly surprised to learn that they can often get much better prices from us, their local and trusted pawnshop.

So, who gives the better deal?

For most items in your local pawn shop, pawnbrokers tend to pay around 40 – 70% of the actual value. This is because a pawn shop is a business; they must make a profit on every item in their shop in order to survive and continue serving their community. However, unlike gold buyers, pawnbrokers have the flexibility to negotiate with knowledgeable and respectful customers.

Also, unlike gold buyers and jewelers, working with a pawnbroker gives you more options. This is because you can use your gold as collateral on a pawn loan. If you are unfamiliar with how pawn loans work, they are safe, quick, and confidential cash loans. When you take on a pawn loan, your pawnbroker gives you a price based on the value of your gold, then holds on to it while you repay your loan plus interest and any accrued fees. When you repay your loan in full, you will get your gold back.

This is an essential distinction between pawnshops and gold buyers if you are not ready to permanently part with your gold or gold jewelry. Not only will this aspect help if your gold has sentimental value to you, but you will be able to use it for a quick cash loan again in the future if the need arises.

However, it would be best if you kept in mind when working with your local pawnbroker to buy and sell gold needs. Where gold buyers are interested in buying and selling, pawnbrokers tend to have lots of inventory. As such, you may need to exercise your negotiating skills a little to get the best possible price.

We understand that for most people, the idea of negotiating with a stranger can produce anxiety, but it doesn’t have to be that way when you work with your local pawnbroker! They are used to working with customers to reach terms that work for everyone.

How can I get the best deal at my local pawnshop?

Now that you know that pawnbrokers are more flexible and willing to help you get the best price, here is how you get the best deal for your gold at your local pawnshop:

Do your homework

Before you visit your local pawnshop, learn as much as you can about the type and weight of gold you have. If your gold is a piece of jewelry or a luxury designer watch, there may be a stamp on the underside or inside that tells you the carat. Then, use the current market price to determine an idea of how much your item is worth.

But keep in mind that, like all buyers, your local pawnbroker cannot offer you one hundred percent of the value. Count on an opening offer of about 40% of the value and go from there.

Don’t be afraid to negotiate

As we mentioned before, negotiating with your local pawnbroker doesn’t have to be a stressful experience. At Azusa Pawn, we welcome the opportunity to work with you to reach a price that works for both of us. The key is to do your homework and know when you have reached the limit.

Don’t be afraid to walk away

Your local pawnbroker should never pressure you to accept a price or terms that don’t work for you. If you feel uneasy about the transaction in any way, don’t be afraid to leave and try again elsewhere. The stakes are too high to accept an inadequate offer or poor treatment.

We work hard to get you the most cash

At Azusa Pawn, we are extensively trained in valuating precious metals and have the resources to provide prices that compete with any other gold buyer. We are committed to providing outstanding service with every transaction. Visit us online or in-person and find out why we are fast becoming the San Gabriel Valley’s most trusted pawn shop!