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consumer tips: should I pawn or sell my gold

Cash for gold is a great way to make a little money, however many people are unsure if they should sell their gold and walk away with the cash or if pawning would be a better option. The answer to this question varies and will depend largely upon whether or not your gold has personal meaning to you.

If you would prefer not to part with your gold, but need cash a pawn loan on gold may work for you. A pawn loan on gold is a way for you to take advantage of the soaring gold price without needing to get rid of valuable jewelry that has personal meaning to you. When you take out a pawn loan the pawnbroker will first assess the value of your gold.

Pawnbrokers are experts in gold and will conduct tests that can determine the purity and weight of your gold jewelry. You’ll get to see the appraisal occur and ask questions about the process. You’ll have a good idea of the value of your gold and you’ll be ready to negotiate a loan amount.

Oftentimes when you opt for a pawn loan over selling your gold you’ll actually get more cash.  This is because the pawnbroker isn’t as concerned about the resale process, so you will have more cash to cover your unexpected expenses.

Pawning or selling both can get you the extra cash you need to cover your emergency expense. The decision is largely up to you. If your gold has personal value you will probably opt to pawn. That way you can retain your item as well as take advantage later of its increasing value. You will have to pay the loan back along with interest and fees so if this is not manageable for you, pawning may be a bad idea.

Selling your gold will also get you the cash you need, however, you do not get to keep your item. Selling gold is the best option if you know you will not be able to pay back a loan and you have gold you do not mind parting with.


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