Know the Right Questions to Ask at a Pawnshop

Man examining the diamondWhen it comes to pawning jewelry like a gold or diamond ring, the question you need to ask is how much you could get for your jewelry. While going from one shop to the next to find the best deal, you should know the right questions to ask to know what is the exact value of your piece.

If you know the carat and weight of your jewelry item, you have some of the basic information you need. Here are the questions you should ask when visiting a pawnshop to know if they are giving you a fair price.

Do you use point systems for diamonds?

Pawnshops use a point system to determine the price of a diamond. Each point is equivalent to 1/100th of a karat. If they use this system and you want to pawn your diamond ring, ask how much a point is. Doing this gives you an idea of how much they can give you for your piece.

What is their percentage for gold?

When pawning gold, it is all about its weight. Pawnshops use a weighing system, where each 31 gram of gold is equivalent to one Troy ounce. Every piece of jewelry with specific amount of gold (24k, 10k, etc.) has an equivalent value in Troy ounces in the market.

For example, a piece of 24-karat gold jewelry is valued at $1283.10 per ounce. If you have 620 grams of 24k gold, it is equal to two Troy ounces. The price would be $2,566.20. However, the pawnshop will not give you this amount. Pawnshops deduct a service percentage, and you should expect to receive between 40 and 70 percent of this estimated value.

The estimated value all depends on the current market value of gold. The estimate could also vary on the pawnshop’s extra fees and charges. Rare and unique items may fetch a higher price.

If you have diamond or gold jewelry and you wish to know their estimated value, knowing these things are essential to help you gauge if your piece is precious and rare.

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