5 Insider Tips for Selling Gold to a Pawn Broker

Thinking of selling jewellery in a second-hand shop in Sydney? This guide is for you.

We will see five things to know before selling gold jewellery to any shop.

Pawn shops are great when you want to sell something. The same goes for gold.

1. Weight Matters, But It’s Not the Whole Story

The value of gold is closely tied to its weight, measured in grams. The heavier the piece, the more it’s likely worth. However, not all gold weighs the same in terms of purity. A chunky bracelet that’s only nine karat gold won’t be worth as much as a lighter one that’s 22 karats.

When you take your gold in, the pawn shop will weigh it using a jewellery scale. Don’t be surprised if they separate your pieces based on karat rating before weighing. That’s because different purities are worth different amounts. You’re not getting paid for the jewellery’s emotional value or design. So, when you sell gold jewellery, you get the money only for the metal, not for anything else.

If you have access to a digital scale at home, you can get a rough idea of the weight before you visit the shop. Just make sure it’s set to grams.

2. Know the Purity (Karat) of Your Gold

Karat tells you how pure the gold is. 24K is pure gold, while 18K is 75% gold, and the rest is 25% alloyed metals.

In simple terms, if the karat is low, the amount of gold you get also gets lower.

So, depending on how much karat of gold you have, you will get the money accordingly.

You can see it on the stamp or on the gold to get an idea of the karat. Keep that in mind. When you sell gold in Sydney, the pawn shop will measure the karats for you if needed.

So, all these things play an important role. If you have a certificate of purity, you can bring that along to the second-hand shop in Sydney; they will give you the cash based on the certificate if it’s valid.

3. The Shop’s Credibility Makes a Big Difference

Not every pawn shop is the same. Some operate with full transparency, explaining how they value your gold and what you’re being paid for. Others may leave out key details or offer prices well below market value, especially if they assume you’re in a rush.

Before selling gold in Sydney, do some basic checks:

• Is the second-hand shop in Sydney licensed and established?
• Do they test and weigh items in front of you?
• Are their offers in line with current gold prices in Sydney?
• Do they explain how they reached their valuation?

Also, read online reviews. They’ll often tell you how the shop treats customers and whether others felt the price was fair.

4. Market Price Changes Every Day

The price of gold isn’t fixed. It changes daily based on global markets. That’s why two shops may offer slightly different prices depending on when you go in or how closely they follow the spot price.

Most second-hand shops in Sydney base their offers on that day’s market rate minus a margin to cover refining and resale. That’s standard practice, but if someone’s offer seems way off, trust your gut. It doesn’t hurt to shop around before committing.

You can check the live gold price online. If you know how many grams of pure gold you’re selling, you’ll have an estimated figure in mind before you step inside. However, you need to note that the online price of gold and the physical store where you sell gold jewellery are different. In the same way, the jewellery and coin prices may also differ, as we have already seen above.

5. Selling vs Pawning: Know the Difference

Some people walk into a pawn shop, not realising they have two options

• Selling their gold outright
• Loaning it for a short-term loan

If you sell it, the item is gone for good. If you pawn it, you can get it back later by repaying the loan plus interest.

If your piece has sentimental value and you think you might want it back, a pawn loan might be the better choice. If you just want cash and have no plans to retrieve it, then selling makes more sense.

Just make sure you’re clear on which option you’re choosing and what the terms are.

Final Thoughts

Selling gold jewellery or coins is a great way to get some easy cash. As the valuation is pretty much fixed, you can get it with ease. However, make sure you keep in mind the above-mentioned things when selling gold. With this, you can also decide whether you wish to pawn your gold or simply sell gold in Sydney.  You can get the price estimate for both of these to get a rough idea of how you wish to proceed.