How a pawn shop values gold
A pawn shop values the gold in your item rather than its retail price. It weighs the item, subtracts stones and other non-gold parts, and allows for the karat: US jewelry is commonly 10, 14, 18 or 24 karat, where 24 karat is pure gold. The value is the pure gold content times the price of gold per gram, and the shop lends a share of it.
That share is the shop's own and it varies, so you enter it from the offer you get. The price of gold also moves daily, and the shop uses its own price, so treat the result as a guide. Pawn rules are set by each state.
Gold prices are usually quoted per troy ounce. One troy ounce is 31.1035 g, so divide an ounce price by 31.1035 to get a price per gram.
Worked example
A 20 g 14 karat bracelet with gold at $100 a gram for 24 karat holds 11.67 g of pure gold and is worth $58.33 a gram, so $1,166.67. If the shop advances 50% of that, the most it might lend is $583.33.
To borrow $400 on that basis you need 13.71 g of this gold.
Karat makes a big difference. 5 g of 10 karat gold at the same price is worth $208.33, and a 40% advance allows $83.33.
To check the loan-to-value of an offer, use the pawn shop loan to value calculator.
What to ask the pawn shop
Ask what share of the value it lends, the finance charge and any fees, the date you must come back by, and what happens to your gold if you do not return. Pawn loans are mainly regulated by individual states, so the terms differ. This calculator does not apply any state rule.
To see what you would pay to reclaim your gold, use the pawn shop single payment loan calculator.
Inputs for the pawn shop gold loan amount calculator
Weight of your gold items
The total weight in grams, including any stones. A troy ounce is 31.1035 g.
Weight of stones and other non-gold parts
Stones and fittings are not valued as gold. Enter 0 if there are none.
Purity (karat)
The karat stamp on the item. 10 and 14 karat are common for US jewelry.
Gold price is quoted for
Choose 24 or 22 karat to match your price, and the calculator converts it.
Gold price per gram
Today's price per gram for that purity. The price shown is only an example.
Share of the gold's value the lender advances
The share of the value the pawn shop lends. Use the figure in your offer.
Loan you would like
The amount you want to borrow. The calculator shows how much gold that needs.
CALCULATOR QUESTIONS
Pawn shop gold loan amount calculator questions
How much will a pawn shop lend on gold?
It depends on the shop. It values the gold content and lends a share of that. Compare offers from more than one shop.
Does a pawn shop pay for stones?
Usually the loan is based on the gold. Stones and non-gold parts are taken off, so enter their weight.
What do 10 karat and 14 karat mean?
Karat shows how much of the item is pure gold in parts of 24. 14 karat is 14 parts in 24, or about 58%.
Does the calculator use state rules?
No. Pawn rules differ by state, so the share the shop lends is a number you enter from its offer.