When pawning jewellery, you first need to have it valued. Pawnbrokers will analyse the scrap value of the gold and maybe consider the value of gemstones included. A pawnbroker who promises a fair valuation will look deeper at the piece or pieces of jewellery being pawned. If there is some historical significance he will take note of that too. Sometimes the story behind a piece of jewellery can enhance its value. For example, if you are selling a piece of jewellery that used to belong to someone famous. You should be aware of the different kinds of valuations when pawning your jewellery, especially if it is in good condition.
Scrap Value
The first thing that a jewellery buyer or pawnbroker will consider when buying gold is its scrap value. The scrap value is the value of gold when it has been melted, refined, and processed. The scrap value of your jewellery will not include other raw materials or any small diamonds and other gemstones. Scrap gold is usually 70-80% of the melt value of gold.
Most people know that gold comes in yellow but it can come in other shades too. You can find high purity white gold jewellery or rose colored gold jewellery. The color of gold can be changed by adding certain metals to gold to get the rose or white shade instead of the usual yellow coloured gold. The pinkish colour of rose gold is achieved by mixing pure gold with a small amount of copper. red gold is valued the same way that yellow gold is valued. It also has a karat value and it will be weighed and depending on the current spot price, you will get a price for it.
Liquidation Value
Liquidation value is important to pawnbrokers Melbourne because it tells the broker how popular a type of gold jewellery actually is and how quickly they can resell the item. This is important because pawnbrokers would rather spend money on something they know they can resell quickly. However, it becomes different when you pawn goods. Some pawnbrokers Melbourne will pay more for jewellery that is of high quality and still in good condition. Shop around to find a pawnbroker who will offer you a good price.
Fair Market Value
Fair market value refers to the quality or purity of the gold jewellery and its desirability in the common market. You can find out what an item’s fair market value is by estimating the current market price of items with the same characteristics, quality, and condition. Keep in mind that your gold is jewellery is not brand new, it has been worn and from the time it left the original jeweller, it began losing its value. Even if you tried reselling the jewellery back to the same jeweler, you won’t be offered the same price you bought it for.
Pawn shops buy and sell jewellery or offer loans on items. They sell those items that borrowers have forfeited by not paying their loans back in time. Loans are more profitable than outright sales because of the high interest they generate. The interest rates vary from one pawnbroker to another but they normally charge a 5% monthly service fee in addition to the interest on the loan itself.
