Many people are interested in where is the best place to donate gold. Recently, an increase in the price of gold has been recorded. Now you can sell this metal at a price of 2,400 rubles per gram. The cost depends on the price of gold on the international market and the quality of the jewelry being handed over.
If gold chains and jewelry are damaged or unusable, they can be sold as scrap. In this way, people hand over gold crowns, coins, and bars for which there are no documents. Before you sell your items, it is better to accumulate more of them. It is much more profitable to hand over several items, because as their weight increases, the cost will also increase.
Where can I donate gold?
There are a lot of places where gold items are accepted. You can get money for precious metals at a pawnshop, a thrift shop, a thrift store, a bank, or from collectors. Where to go depends on the type of product and the desire to buy the product. For example, banks buy bullion from individuals. Collectors will give the best price for coins.
But most often the items that are handed over are jewelry. In this case, two popular options are purchasing and pawnshop. Let's talk about them in more detail.
Pawnshop
The essence of its activity is to issue a loan for a certain period secured by valuable property. A jewelry pawnshop must have a license to carry out pawnshop activities from the Central Bank, a certificate of state registration, and a specially equipped safe for storing items accepted from clients.
Determining the value of the jewelry and the maximum loan amount takes a few minutes. You can’t borrow all the money, but only the amount you need, on which interest will be charged. Until the end of the contract, the company undertakes to store the product safe and sound. If the deadline has passed and the surrendered product is not redeemed or interest is not paid, the financial institution sells the collateral, thus covering its losses.
Purchase
Such organizations accept jewelry under a purchase and sale agreement without the right of further repurchase. This means that you cannot hand over an item and pick it up after a certain time. Money is issued immediately depending on the weight and purity of the precious metal. The price per gram when put up for sale is slightly higher than what is offered in pawn shops.
Buyers accept jewelry in any condition. They will not take nuggets, gold dust, or ingots.
Buying activities are also subject to licensing. Illegal purchases are not uncommon. To avoid falling for scammers, I advise you to pay attention to the availability of permits.
What are the differences between a pawnshop and a purchase
A pawn loan is issued for a specific period. Usually for a week, maximum a month. After this time, the client, who is also the borrower, pays the interest and takes the gold. If you do not plan to pick up the returned item, notify the employee immediately. The pledge agreement will be issued for a minimum period.
The purchase does not provide for the right of redemption. You can only hand over your jewelry without returning it. This is the main difference. A pawnshop is an organization that issues a loan under a collateral agreement. The purchaser acquires under a purchase and sale agreement.
To read: What are noble (precious) metals and how many of them are there + list of semi-precious alloys
Implementation methods
Selling precious metals is associated with a high risk, as there is always the possibility of meeting a scammer. Therefore, before finding out where they accept gold and how much money they give for it, you need to decide on its form. If the metal is represented by an ingot, then it is most advisable to sell it to the bank. Many financial organizations are engaged in purchasing, but they are demanding in terms of the appearance of the product. The ingot should not be:
- cut;
- broken;
- have scratches or dents.
Defects significantly reduce the value of gold. A manufacturer's certificate is required. In case of serious damage to the ingot, it is better to take it to a pawnshop, but there it will be assessed as scrap precious metals, that is, at a low rate.
It is profitable to invest in coins made of precious metals. It is better to sell them to banks, too, but the products must be in good shape and have a passport from the manufacturer. An advantage would be a whole, unopened package, as this will guarantee the absence of scratches on the surface.
Bank gold can be taken to a pawnshop, but in this case it will be valued only by weight. And you won’t be able to sell the precious metal at a high price. If the coin has a high collectible value, it is better to offer it to numismatists. If there is time, auctions are held on special sites - this allows you to increase the price of the product being sold. It is better to sell expensive gold coins after being assessed by an expert , as he will tell you their real value. Some owners are deceived by experienced collectors and insist on a cheap sale.
Advantages and disadvantages of pawnshop and buying
Advantages of pawn lending:
- Quick assessment, execution of an agreement, and therefore receipt of cash.
- Minimum documents - you only need a passport.
- Early redemption with interest recalculation is available.
- Your credit history with other financial institutions is not important.
- The most important thing: having handed over products that are valuable to you, you do not lose them and have the opportunity to buy them back.
The disadvantage of such a loan is the high interest rate for using the money. And prices per gram are significantly lower than market prices.
The advantage of buying is the high cost per gram. As a rule, they give 10-50 rubles more than in a pawnshop. The issuance of money also occurs quickly and is completed with a minimum of documents. Disadvantages:
- The terms of the transaction and the legality of the buyer’s activities are not always transparent.
- Delivery of products without redemption.
Pawn shops can get robbed.
Vladimir Morokov : No one is immune from this, especially a credit institution. In Dostoevsky's novel Crime and Punishment, the old money-lender was completely killed. They even rob banks. Unfortunately, our properties have also been subject to robbery attempts.
The pawnshop’s task is to carry out all security measures: install safes, alarms and minimize such actions on the part of criminals.
Credit is micro, problems are macro. How to avoid troubles with microloans Read more
Ways to donate gold to a pawnshop
The choice depends on the desire or unwillingness to buy back the pledged product. A pawnshop can offer two options - collateral with the right of redemption or an unsecured option.
Pledge
Pawnshops usually accept gold for a certain period of time. Based on the estimated value of the item, the client will be given cash. The pledge agreement is concluded for a certain period. Upon completion, the borrower undertakes to buy the product or renew the contract by paying interest for the past period.
If it is not possible to repay the loan amount with interest, the company waits for the client under the collateral agreement for some time, usually no more than a month. After which the surrendered item becomes the property of the pawnshop and is sold.
No collateral
In this case, a purchase and sale agreement is concluded. The gold becomes the property of the pawnshop immediately after the money is issued. The very next day the jewelry can be put up for sale, naturally at a higher price.
Per gram of precious metal they give more than with a pledge agreement. The condition of the decoration is not taken into account. Everything is accepted at the price of scrap.
What is the difference
Each option has its pros and cons. The difference lies in the client's desire to keep the gold. Depending on this, a pledge or purchase and sale agreement will be drawn up. In the latter case, the price per gram will be offered more, because the pawnshop does not have to wait for the loan to be repaid.
Sell or pawn – which is more profitable?
When selling gold jewelry, you will get more money than by selling it with the right to buy it. This is a short term benefit.
I advise you to immediately assess your financial capabilities in the future. Interest is accrued daily on the amount of the loan issued. If your financial situation improves in a week, a month or a long period of time, then it makes sense to pay the interest and subsequently return the jewelry that is dear to you. However, if no income is expected in the near future, you risk losing gold, and:
- Get less money when you change.
- You might even pay interest one or more times.
When the client cannot pay, the pawnshop will wait a little and sell the gold anyway. This scenario leaves the owner of the surrendered gold in the red, because the amount received as collateral is reduced, plus interest is paid for use.
Also keep in mind that the cost of precious metals has been steadily increasing over the years. In a year, for example, you can get much more for the same weight. I advise you to take this factor into account before handing over your gold forever.
Women often bring gifts from ex-husbands and lovers to pawn.
Vladimir Morokov : It's true! A lady comes with tears in her eyes, pours out a handful of gold and says:
“Take it! I don’t want anything from my ex!”
The decorations turned out to be serious. Apparently, her gentleman generously showered her with jewelry. We suggested that she take the jewelry to the buyers, they would have given more money, but the woman stood her ground.
“I’ve already arrived, I don’t want to go anywhere else, give me the money according to the tariff!” I really wanted to get rid of everything as quickly as possible.
Question answer
Is it profitable to buy gold today?
What do you need to take precious metals to a pawnshop?
Precious metals are accepted only from adults with a passport. It will be useful to understand whether you want to buy back the pawned jewelry in the future. You will need the collateral itself. You can grab preserved tags and certificates.
Submission rules
First of all, the appraiser will ask whether you plan to pick up the product. The type of contract and its duration depend on this. To complete the transaction and issue money, the appraiser determines the authenticity of the precious metal and its purity. Evaluation and weighing must be carried out in the presence of the client.
To read: Gold rate on Forex: online XAUUSD price chart for today + 3 strategies for trading the metal
Persons over 18 years of age can apply for a pawn loan or hand over gold by presenting a passport. Valuables not redeemed upon expiration of the contract become the property of the pawnshop.
What kind of gold can be donated?
Jewelry, coins, orders are accepted in any condition, including scrap. It is not necessary to have the stamp of the state Assay Office or the manufacturer's stamp. The appraiser will determine the type of metal and its sample using reagents.
Samples from 333 to 999 in the metric system are accepted. The minimum weight of a product or individual part is 0.1 g. A smaller part simply cannot be verified for authenticity.
Some pawn shops have appraisers on staff who understand stones. They will be able to evaluate the donated rings, pendants with precious and semi-precious stones. In others, money will be given for the net weight of gold, after having previously taken away the approximate weight of stones. You will not be able to hand over gold leaf, weapons, ammunition, laboratory glassware, nuggets, or gold dust.
How does the delivery procedure work?
Obtaining a pawnshop loan proceeds according to the following scheme:
- Providing the client with a passport and collateral.
- Weighing the product with an accuracy of 0.01 g.
- Authentication and proofing.
- Announcement of the maximum possible amount to be issued.
- With the client's consent, preparation and signing of documents.
- Receipt by the client of money, a copy of the pledge agreement, and a receipt.
What do people pay attention to in a jewelry pawnshop?
The appraiser will pay attention to the following parameters of the gold product:
- weight, purity (the larger and higher, the more expensive),
- appearance, condition (presence of scratches, deformations, other defects),
- design, brand.
Factors affecting cost
The price per gram of gold in a pawnshop depends on the fineness of the gold alloy and the category of the product. Whole, exclusive, high-quality branded jewelry is valued at more than scrap.
The maximum amount possible for issue is calculated based on the Lombard rate of gold of a certain standard, category and net weight. When calculating, the weight of stones, base metal inserts, and contaminants is subtracted from the total mass.
The repayment period of the loan received also affects the cost. The longer the contract period, the greater the risks for the pawnshop, which means the lower the amount per gram.
Many organizations have discount programs for their clients. A regular customer card gives better conditions and a larger amount.
How is a gold item appraised?
The client must see the process of receiving, weighing and testing gold. Weight is measured on ultra-precise scales with an accuracy of hundredths of a gram.
To determine the sample, a small cut is made, into which the evaluator drops a chemical reagent. Based on the reaction of the alloy and the degree of burn, the ratio of pure gold and impurities present in the alloy is determined.
Remortgage service
In essence, this is an extension of the contract term. If the time for redemption has come and there is not enough money, you can only pay the interest for the past days. The pawnshop will postpone the redemption period and issue you another agreement with new dates.
Along with interest payments, it is possible to repay part of the loan amount. The advantage of such partial repayment is that the loan amount is reduced, and therefore the accrued interest.
Question-answer section
What to do if there is not enough money for the ransom?
Expert opinion
Zilbertrud Dmitry
Lawyer, legal bureau "Verdict", Voronezh
Pawnshops may wait to sell items if the owner warns of delays. You need to prepare for an increase in interest rates during this period. This applies to products of various types, including the most common (585 samples). It is necessary to find funds by all means to return the gold, otherwise you can lose it forever, since the maximum period after extending the redemption period is 1 month.
Is the price of gold the same in pawn shops? How to choose an honest one?
Expert opinion
Pribrezhny Gennady Valentinovich
Jeweler 6th category
The cost in pawnshops that are licensed by the Central Bank is approximately the same, with some exceptions. You can choose any of them, but it is better to enter into an agreement with organizations that already have a reputation, and a good one at that. It is recommended to study reviews of pawn shops in your city. Today, users leave their impressions of cooperation with various organizations. Such a system works not only in the Russian Federation, but also in Kazakhstan (Astana and other cities), in Belarus, etc.
What other documents can I provide besides a passport?
Expert opinion
Grishanov Mikhail Petrovich
Jeweler, director of the Grishanov and Co. workshop
Most often, a passport is enough. But some of the organizations offer advanced features. You can present a foreign passport, military ID or driver's license. In order not to waste your time on a trip to a place where loan conditions are more stringent, you need to first clarify by phone what documents will be required.
At what age can you go to a pawnshop?
Expert opinion
Zilbertrud Dmitry
Lawyer, legal bureau "Verdict", Voronezh
Only an adult citizen of the Russian Federation can receive a loan against collateral. At the same time, none of the organizations makes exceptions, since the work of pawnshops today is gradually being brought out of the shadows, all actions can be verified. Some of them even refuse to cooperate with potential clients under the age of 21.
Gold jewelry and Russian passport
What to do if your deposit ticket is lost?
Expert opinion
Zilbertrud Dmitry
Lawyer, legal bureau "Verdict", Voronezh
Pawnshops that accept gold as collateral for a loan maintain cash books where all receipts must be reflected. If you lose your deposit ticket, you must contact the organization that provided the funds again. You need to have your passport with you.
Tips on how to donate gold
Before going to a pawnshop, decide how valuable the product is to you and whether you want to buy it back later. Based on this, choose a suitable organization - a pawnshop or a purchase.
When going to a pawnshop, don’t forget your documents. Without a passport, the contract will not be executed.
I advise you to monitor several companies, find out prices, terms of registration, percentage. This information can be easily found on the Internet on the websites of organizations offering similar services.
To read: How to clean silver with ammonia and not spoil it: what jewelry is allowed + what is not allowed
Choosing a pawnshop: where is the best place to donate?
Determining the place where to carry gold as collateral should be approached responsibly. Otherwise, there is a risk of ending up with a shell company that will cease to exist by the time the buyout time comes. I advise you to choose a pawnshop that is not only profitable, but also reliable.
Pawnshop activities are subject to licensing. Copies of the permit to provide services and the certificate of state registration must be in an accessible place for review. I advise you to find out how long the organization has been operating on the market, what reviews clients give about its work.
Company verification
Reliable pawnshops, as a rule, have been operating on the market for a long time and have a wide network of branches. Their permitting documentation is in order, the terms of transactions are transparent, and there are no hidden fees. You should be wary of a too high gold rate if it differs significantly from those offered by competitors.
Terms of a transaction
The procedure does not take much time. It will take no more than 20 minutes to familiarize yourself with the conditions, evaluate the delivered item, draw up and sign an agreement, and receive money. Gold can be pledged or sold only with an identification document. Some purchases accept, in addition to passports, driver's licenses and international passports.
A properly executed contract must contain the following conditions:
- redemption period,
- accrued interest for use,
- possible fines, penalties for late redemption or payment of interest,
- terms and procedure for transferring the surrendered property into the ownership of the pawnshop.
Is it possible not to buy gold from a pawnshop?
The client is not obliged to redeem the gold item returned with return. Despite the fact that the terms of repurchase are specified in the contract, no penalties are charged for refusal to repurchase. After the storage agreement ends, the deposit will wait for the client for some time. During this period, increased interest is charged on the loan amount issued.
The pawnshop will wait if the client has expressed a desire to buy the product, but asks to wait a little, or there is no contact with him. In case of failure to pay at least interest within the period specified for deferment or refusal to repurchase, the pledged property becomes the property of the organization. The donated gold will be sold in a store, at an auction or at a jewelry factory for melting down.
Next, see how buying gold works:
Buyers buy gold that the client did not take.
Vladimir Morokov : There is no such thing. At the dawn of pawnshop activity, something similar happened; the organizers collaborated with antique dealers and jewelers. But today this is not the case. There are reasons. The number of all valuable things in the hands of the population has decreased. We are obliged to transfer the remaining gold for auction to other authorities.
There was a period of time in the early 2000s when someone was buying unredeemed gold from a pawn shop. Nowadays there are thrift stores for such purchases. Large “gypsy” items—pendants and chains—are in demand.
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How and where do pawn shops sell gold later?
Large pawnshop chains have their own jewelry stores where they offer unredeemed jewelry for sale. The advantage of such stores is that the price of high-quality jewelry is lower than in retail chains.
Unique, branded or antique items are sold at auctions. The one who offers the highest price can buy them.
Pawnshops sell broken, unsalable, and deformed items to jewelry factories and factories. There the scrap is melted down and new jewelry is made.
