Why a Pawn Loan Pays Less Than an Outright Sale
When a pawn shop makes you a loan against gold jewelry, they're taking on the risk that you don't come back to repay it — if that happens, they have to resell the item themselves, at their own cost and effort. That risk is why pawn loan offers commonly land around 40-60% of melt value, well below the 70-85% range typical of an outright direct sale, where the shop is buying the gold once and reselling or refining it with no repossession risk to price in. If you don't need the item back, a direct sale (to the same pawn shop, a dedicated gold buyer, or a refiner) will generally net more than pawning it.
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Cash for Gold
Single item, buyer estimate
Scrap Gold Calculator
Mixed lot, multiple items
Dental Gold Value
Alloy — estimate only
Methodology
Data source & formula
Main Calculator
All karats in one tool
Frequently Asked Questions
It depends on the transaction type: a pawn loan (collateral, redeemable) typically runs 40-60% of the item's melt value, while an outright direct sale typically runs 70-85% of melt value. Both are estimates — actual offers vary by shop, karat, and local competition.
If you want the item back and can repay the loan, a pawn loan preserves that option, though at a lower payout. If you don't need the item back, a direct sale (to the same pawn shop, a dedicated gold buyer, or a refiner) typically nets more cash for the same piece.
It varies by shop, but general pawn shops sometimes offer less than a dedicated gold-buying service or refiner because gold is one of many categories they handle, versus a business built specifically around precious metals. Comparing at least one of each before selling is worth the extra few minutes.