We’ve all heard the adverts for gold buyers and we know they are specialists in gold buying, but are they the best place to sell our gold to? The quick answer is no, read on to find out why this is the case.
What is the difference between a pawn shop and gold buyer?
Gold buyers usually operate online and through the post, so you never see them face to face and there is a reason for this. It is so much easier to operate in an impersonal way and provide low offers when you aren’t faced with a person. They also tend to operate a take-it-or-leave-it offer which is hard to not accept when they have your items and you’d have to wait for them to be returned.
The value of your piece and the amount offered can vary massively depending on who you go to. All buyers will be using the same information on the current gold value but the percentage of the value they offer can vary widely. Gold buyers generally offer a low amount sometimes as low as 40%, whereas a pawn shop offers a much fairer price up to 70%, which makes a huge difference to the valuation.
The process of selling is very different:
Pawn shop – visit the pawn shop with the item and the item is appraised. The pawn shop makes an offer, you negotiate and agree a price and get paid within minutes.
Gold buyer – for a mail process you generally send a photo of your item first and are sent a postal label. You package the item and send it. Once it has arrived, they will do an appraisal of the item and send you a check. If you don’t like the amount you can request that they return the item. This process can take weeks.
With a pawn shop, you get a much faster and more flexible process with the opportunity to negotiate as well as the option of choosing to take a collateral loan instead of selling the item.
What to look for
Many gold buyers are businesses that are set up and disappear fairly quickly as their tactics are not necessarily ethical and they vanish before the authorities catch up with them. They advertise heavily and make money fast.
You should be aware of buyers who aren’t part of regulated associations or licensed. You should avoid companies that use urgency to get you to act quickly and offer unrealistic promises.
Knowledge is power – know who you are selling to and what you are selling. Do your research and be confident that you have chosen the right company and that you know what you selling and have an idea of its value to help you to negotiate.
In Florida, the name you can trust is Florida Pawn. We offer fair and competitive prices and friendly service, so visit either our Hollywood or Margate store to see what your gold is worth.