With the price of gold at all-time highs and so much uncertainty in the world, it may be the perfect scenario for you to consider liquidating your gold and gold jewelry.
There are two distinct ways to go about this: pawning or selling your items. Do you understand the difference between selling vs pawning your gold?
If you are saddled with gold but are on the fence between pawning vs selling it, then read on to learn more about each option and which one better suits your needs.
Selling vs Pawning
Although both selling your gold and pawning it can put much-needed cash in your hands, there is a significant difference between pawning vs selling.
Pawning occurs when you take your items to a pawn shop. The business will offer you a loan on your items, giving you a specified amount of time to return and pay the loan back.
The main advantages to pawning include:
- Access to immediate finances as short-term loans with the broker
- The ability to repay your loan and restore ownership of your items
As a solution for immediate funds with an opportunity to repurchase your gold, deciding to pawn vs sell your gold may be the right fit for you.
However, there is a catch.
Pawning Gold
As noted, pawning is, at its core, a form of loaning. When you pawn your gold, you’re getting a loan on your items that are used as collateral. However, if you fail to pay the loan back and the loan’s interest – as per their agreement with the creditor – you will forfeit your items to the pawnbroker.
And although pawnbrokers may be willing to offer loans on your gold and jewelry, the cash you walk away with after this kind of arrangement is almost guaranteed to be less than you would receive selling your valuables outright. The reason for this is that a broker must consider the resale value of the collateral if the loan is never paid back. This business model allows pawn shops to hedge risk and make a profit off your gold.
Selling Gold
In contrast to the pawning process, selling gold is much simpler. Selling it will also get you the highest return for your precious gold and jewelry. Even if your jewelry is broken or damaged, gold can still be sold in this way for a reasonable price.
When you sell gold for cash, the physical gold is delivered to the purchaser, who then assesses its purity and total weight before giving you a purchase offer. If you choose to accept the offer, you are paid quickly for your valuables.
Getting cash for gold through this process involves measuring your ingots, coins, or jewelry to properly appraise it. Gold is usually priced by the troy ounce, and a single troy ounce is equal to 31.1 grams.² Your gold’s purity is also assessed before its appraisal. Cash For Gold USA has experts on hand to complete these processes so that you can be paid for your gold more efficiently.
At Cash for Gold USA, we will make you the best offer to sell gold to us as the industry leaders. What’s more, we provide up to $100,000 worth of insurance (upon request), free shipping, and a 24-hour payments.
All of this is backed by a 100% satisfaction guarantee. If our offer is not to your liking, you can request that the item be returned instead — free of charge.
Contact Us
If you’re still wondering about the difference between selling and pawning, our blogs and FAQ page are loaded with helpful information.
Ready to sell your gold? Contact us today and see how Cash for Gold USA will get you the most money for your gold and jewelry.
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