How a pawnbroker values gold
A pawnbroker values the gold in your item, not its retail price. It weighs the item, takes off stones and other non-gold parts, and allows for the carat: UK jewellery is commonly 9, 18, 22 or 24 carat, where 24 carat is pure gold. The value is the pure gold content times the price of gold per gram, and the pawnbroker lends a share of it.
That share is the pawnbroker's own and varies, so you enter it from your offer. The gold price also moves daily, and a pawnbroker works from its own price, so the figure here is a guide. Ask for an offer in writing before you pawn anything.
Prices are often 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 18 carat chain with a 0.5 g stone, with gold at £80 a gram for 24 carat, counts as 19.50 g of gold worth £60.00 a gram, so £1,170.00 in all. If the pawnbroker advances 50% of that value, the most it might lend is £585.00.
To borrow £400 on that basis you need 13.33 g of this gold.
Carat makes a big difference. 10 g of 9 carat gold at the same price is worth £300.00, and a 40% advance allows £120.00. Asking for £800 against it is £680.00 more than that.
To check the loan-to-value of an offer, use the pawnbroker loan to value calculator.
What to ask your pawnbroker
Ask what share of the value it lends, the interest or charges, the date by which you must redeem, and what happens to your gold if you do not. A pawn under the Consumer Credit Act 1974 is redeemable at any time within six months after it was taken (section 116(1)); your agreement sets the actual terms.
To see what you would repay, use the pawnbroker bullet loan calculator.
Inputs for the pawnbroker 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 (carat)
The hallmark carat on the item. 9 and 18 carat are common for UK jewellery.
Gold price is quoted for
Choose 24 or 22 carat 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 pawnbroker 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
Pawnbroker gold loan amount calculator questions
How much will a pawnbroker lend on gold?
It depends on the pawnbroker. It values the gold content and lends a share of that. Ask for an offer in writing.
Does a pawnbroker 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 9 carat and 18 carat mean?
Carat shows how much of the item is pure gold in parts of 24. 18 carat is 18 parts in 24, or 75%.
How long do I have to get my gold back?
A pawn is redeemable at any time within six months after it was taken under the Consumer Credit Act 1974. Check your agreement.