Three Reasons To Take Your Gold To A Pawn Shop Rather Than A Gold Dealer

Do you have a piece of gold jewelry or a gold collectible that you need to get money for fast? Though contacting a gold dealer may be the first thing on your mind, there are a few reasons why you might want to head to a pawn shop instead -- especially if the item that you have is particularly valuable. 

You Won't Just Get The Raw Gold Value

In general, a pawn shop will take an item's resale value into account. It can give you money based on the workmanship and usefulness of an item rather than on the raw value of the item's gold content alone.

A gold dealer, however, will only give you money based on the amount of gold in an item -- and only the gold. That means that if you have a 14k gold watch, you're only going to get the value of the raw metal in the band and face. The gold dealer won't take into account the value of the watch as a whole.

You Can Get Your Item Back Later

If you have an item that you care about, a pawn shop is best because you can get money for the item now and you still have the option of getting the item back later. As long as you can continue to make payments on it, you'll always have the option of getting it back. With a gold dealer, the item is usually sent to be melted down very quickly. Even if you decide you want it back later, it may have already been destroyed.

You Can Negotiate With A Pawn Shop

Pawn shops price their own items. That means that you have some leeway to negotiate with a loan or sale if you don't feel that you're getting a fair deal, especially if you have a special item. You can't negotiate with a gold dealer because their prices are set specifically on the price of gold -- there is only a certain amount of money that they can get for the gold that they melt down, and they are aware of that.

A gold dealer may still offer a better deal if you just want to sell some raw gold or a gold bar -- but who has raw gold or a gold bar? Most people trying to sell gold have items that were decorative or collectible, and these items have value beyond their gold content. A pawn shop is often the best choice in these situations. For more information, contact a professional like those at Express Pawn.