As inflation continues putting a dent in Australia’s budget, you may be looking to sell your gold items for extra cash. The best place to do this is at your local pawn shop, Melbourne dealer. While they carry quality power tools, luxury items, and electronics, they also buy designer jewellery. So, if you want to make cash in 2022, follow these negotiating tips.
How to Negotiate the Best Prices
If there is one thing that has value to turn into cash at your local pawnshop, it is gold jewellery. But you still need to get a great offer and need to know negotiating tips. If you are attempting to sell your precious pieces to a pawnbroker like a designer piece or diamond ring, get a jewellery evaluation to assist withe negotiating.
If you have old broken jewellery, you can only sell it for scrap. To find out the scrap prices you can do this by checking the pawnbroker’s website to see the current gold market price or what they are paying per gram. Then, separate your gold piece into the fineness of 9k to 18k and grab your kitchen scale to weigh them individually.
Also, remember that the pawnshop will offer you a percentage of the full market value as explained further on.
Remember a Pawn Shop is Only a Business
When negotiating with a pawn shop Melbourne dealer in 2022 remain non-emotional and detached. The reason is that your piece of jewellery might have sentimental value. Still, it does not have the same value to a pawnbroker.
You can expect a price based on the current gold market price and fineness of the precious metal. Then the buyback price will also include the pawnshop’s profit margin they can expect on a sale and whether the piece of gold is going to resell easy.
Determining the Value and the Offer
When visiting a local pawnshop with your gold jewellery, the dealer will look at the demand if he can sell it in the shop window or simply buy it as scrap gold based on market prices. So, if the gold price drops, you might not get as much as expected and vice versa. When calculating the price, the pawn dealer will also look at the gold purity and weigh it accordingly
They will then provide you with price based on the current market value less their margin. The higher the karats of the gold the more you will be paid.
The gold purity is the main factor which can also play a huge part in determining the price as the more gold you have the more money you will get. The reason the buy under market is that they need to include costs for melting and refining. Lastly, always wait for the pawnshop to make the first offer. They buy items every day and are more than comfortable assigning a value to your gold pieces.
When you put in the first offer you might end up shortchanging yourself as the shop might have offered you more.