Sell Gold For Cash: Online Buyers Vs Pawnshops

Finding out where to sell gold for cash can be easy, you can ask Google and the search engine will give you a number of options. where the best place is can be confusing. Should you sell it to local gold buyers, or online; should you pawn it or sell it at one of those pop-up kiosks you find at the mall. If you want the most cash for gold then a pawnshop or kiosk should not be your first choice. Local gold buyers, online gold buyers and jewellers might be able to give you a better deal on your gold. There are advantages and disadvantages offered with each option. You need to know what they are so you make a well-informed decision.

Selling gold to online buyers

Online buyers are not only convenient, but they offer the best price than your regular physical store. The main reason is that it cost less to operate an online business than it does to run a physical store. Brick -and-mortar buyers have to somehow offset  the cost of doing business with you.

Online buyers can afford to take low margins on the gold the buy and sell because they have lower operating costs.

The process of selling gold online is simple

You can sell gold without ever having to leave your home with it. That is convenient, not to mention safe. The process might vary from buyer to buyer but it is generally something like this:

  • You will be required to fill an online contact form
  • The buyer will provide an insured mailer for you to send your gold for appraisal.
  • The gold item will be appraised and an offer made
  • If you accept the offer, the buyer will pay you within 24 hours. But if you don’t the buyer will send your gold back.
  • You may be charged a fee for shipping and appraisals

Drawbacks of selling gold online

The most important drawback of online gold buyers is that they do not pay you immediately or directly. To get the cash for gold you want, you will have to wait 24-48 hours from the time the offer has been accepted.  The money gets deposited into your bank account, via Paypal or you get a check. All these payment methods have a transaction fee attached. So, you end up with a little less than you may have expected.

Pawn Shops and gold

Pawn shops do two things: they either offer you a loan against your jewellery or they buy the gold and give you cash for it. When you want a hassle-free gold selling experience you can try a pawnshop. Pawnshops are known to buy anything from lawnmowers to guns. To get a good deal, find a pawnbroker who is interested in jewellery. He may give you more cash for gold than a general pawnshop.

Disadvantage of selling gold to a pawnbroker

Pawnshops do not pay a lot of money for gold. This is because pawnbrokers make most of their revenue from loans, not sales. Pawnbrokers will buy gold from you but they need to make a reasonable profit margin. A lot of pawnshop have high operating costs and do not deal with large volumes of gold – this is another reason why they offer so little.

Gold Buyers or Gold Dealers

Gold buyers or gold dealers are usually located in your local CBD area. Most gold buyers usually pay the highest prices for gold and work closely with gold refineries. The reason they are able to offer you the best price is due to them having the volume and infrastructure in place.