Many people are leery of selling their gold valuables to a pawn shop. After all, most people don’t understand how the price of gold is calculated and therefore don’t know how to determine if they’re getting a fair deal. This is certainly understandable, especially if you’re going to be visiting a pawn shop where you’ve never done any business in the past. However, if you take the time to learn about the price of gold, you’ll be able to enter any pawn shop and be able to make an informed decision about selling or pawning your gold.
Calculating the Price of Gold
The price of gold is determined through the London gold fixing or gold fix procedure. It is calculated twice each business day on the London market. Five members of The London Gold Market Fixing Ltd conduct the procedure at NM Rothschild & Sons. While it is used in the London bullion market to fix a price for settling contracts, it is recognized internationally as the benchmark for pricing gold products and derivatives. The gold fix is done daily at 10:30am and 3pm (London time) in United States dollars, Pound sterling and the Euro.
Once you know what the gold fix is at any given time, you can make an informed decision as to when you want to sell or pawn your gold. If you have a considerable amount of gold, you may want to look at the trends and make a prediction as to whether you should sell now or hold on to it and sell at a later time when the price might go up. Of course, no matter when you decide to sell or pawn your gold, being aware of the gold fix for each day will help you determine if you’re being offered a fair price by pawn shops.
If you’re ready to sell or pawn your gold jewelry, coins or bullion, you should visit your local pawn shop. Pawn shops will determine purity of your gold by performing a nondestructive acid test on it. They then weigh the individual pieces and make an offer based on the weight and purity of the gold. At Hat City Pawn, we pay the highest price for gold, guaranteed. Our prices will not be beat by another pawn shop or gold buyer.