Heap of gold gold stock

As gold has gained momentum among investors aiming to hedge against unstable international markets, its price has rallied close to historic heights (over $1,700 per ounce).¹ Those looking to leverage this growth in value have begun to consider the liquidation options available to them.

Individuals looking to liquidate their accumulated gold in exchange for cash turn to selling and pawning in equal measure, but the two processes are not the same. The former option involves scouting out the best place to sell gold jewelry for cash, while the latter option is more like taking out a high-interest loan.

If you are saddled with gold you would like to get cash for but are on the fence between selling and pawning it, then read on to learn more about each option and which one is your best bet:

Selling vs. Pawning

Although both selling your gold and pawning it can put much-needed cash in your hands, the two options are almost nothing like each other.

Pawning Gold

Pawning is, at its core, a form of loaning that relies on physical goods being offered by debtors to creditors as collateral. Should the debtor be incapable of paying back the loan’s capital and interest as per their agreement with the creditor, the item they have put up for collateral becomes the creditor’s property.

All manner of items are often pawned in exchange for money, including jewelry and precious metals. However, 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 guaranteed to be less than you would get by selling the items outright. A pawnbroker is driven to offer less money to pawn an item than a prospective buyer would offer to purchase it because the pawnbroker needs to account for the item’s resale value ahead of time in case the loan they offer is never paid back.

Selling Gold

20 and 10 cent coins

In contrast to the pawning process, the process of selling gold is quite a bit simpler and likely to yield better returns (read: more money). Even if your jewelry is broken or damaged, it can be sold in this way for a good 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 item. If the offer is not to your liking, you can request that the item be returned instead. Cash For Gold USA will even return your item free of charge if you decide not to sell it.

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 31.21 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 quickly.

You may be wondering, “Is Cash for Gold near me?” Click the link to find out or give us a call at 866-300-1430.

Sources:

  1. https://markets.businessinsider.com/commodities/gold-price?op=1
  2. https://www.investopedia.com/terms/t/troyounce.asp