- Posted by GBM Blog
- On August 28, 2015
- 0 Comments
In general it seems that pawn shops have a bit of a bad reputation, and only desperate people and criminals use them. In all honesty, this is far removed from the truth, and a wide variety of different people regularly visit pawn shops. You can take almost anything of value to a pawn shop and sell it for cash, or even lend money against your valuables using them as security. You can even sell your gold bullion to a pawn shop!
The Universal Value of Gold
Gold is a commodity, and as such the value of it is dictated by the commodities market. The supply and demand of gold is an important aspect of the way the value is worked out. When demand is high, prices also increase, and as the demand slows down, the price often also drops. A pawn shop, just like any other gold or jewellery buyer, will work off the latest rates of the price of gold. Based on the purity and quantity of gold that you have, they will use the latest market price to value the gold. The value that you receive should be the same at almost any place that you can sell your gold. The only thing that changes is the percentage of commission!
The Importance of Shopping Around
Although the price of gold is set by the market, you will find that there is a difference between all of the different companies that will buy your gold. The difference between all of the companies is the commission that they charge. Because of this, it is important that you shop around and speak to as many different companies as you can. You will want to make sure that each company is accredited and also licensed, and compare the commissions that each company charges. You will also need to take into account the location of the shop, as this can eat into the amount of money that you receive. If you have to travel a long distance or pay for a registered delivery, then you need to take this cost into account.
Selling or Pawning your Gold
One of the great things about using the services of a pawn shop is that you do not have to sell the gold if you do not want to. Instead, you have the option to borrow money against the value of your gold. You will then have a set time limit with which you have to pay back the money owed, plus a small amount of interest. Using this service can be a great way to free up some quick cash if you have an urgent need for it. So next time you have some gold to sell, do not believe the stigma attached to pawn shops, and see how much money they will offer you for your gold!