How much does one gram of gold cost in a pawnshop and how to sell it profitably

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Published: 11/22/2021

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People bring valuables to a pawnshop for various reasons, but the main one is the urgent need for money. Sometimes citizens, without regret, donate gold jewelry there that has lost its relevance for them. For whatever reason you go to a pawnshop, you first need to find out everything about the rules and conditions of operation of such establishments. This will be discussed further.

• What parameters does an expert use to evaluate a gold item in a pawnshop?
• Who can donate gold to a pawnshop?
• What kind of gold can be donated?
• Rules for accepting gold Pledge agreement
• Collateral assessment
• Storage of collateral
• Payment
• Overdue
• Issuance of collateral

What parameters does an expert use to evaluate a gold item in a pawnshop?

Valuing gold is a complex process that requires a professional approach. Only an expert can correctly assess the value of a gold coin or jewelry. If, as a result of the examination, the product receives a high score, then it can be sold at a decent price. The appraisal also determines the size of the pawnshop loan.

The main purpose of gold jewelry is to give aesthetic pleasure, to please the owner and people around him. The initial assessment will depend on how beautiful the product is. However, other criteria that influence the final cost are also important for the expert. The most important evaluation parameters are:

• State of decoration. New products will receive the highest score and will most likely be accepted at the maximum price per gram. At the same time, broken, worn items with defects, chips and scratches will be accepted for the price of scrap gold.
• Weight. The product must be weighed, and the appraiser will determine the weight of the alloy and pure gold. The more gold, the more expensive the entire product will be. Weight is determined using special electronic scales with very high accuracy (up to 0.01 grams).
• Try. The appraiser will consider the mark and the presence of a hallmark on the product. Gold of 583 or 585 purity is valued in pawn shops at slightly more than 50% of the Central Bank discount price. If you first want to understand approximately how much money you can expect, look at the price of one gram of gold on the Central Bank website and divide it in half. In pawnshops, the accepted price will be close to the received value (plus or minus 200 rubles). Gold of a different standard will be valued more or less expensive. For example, 999th purity (coins, bars) costs 60-80% more.
• Presence of stones. Various inserts of semi-precious and precious stones increase the value of a gold product.
• Design. This is also an important point when evaluating gold jewelry. If the product is relevant and fashionable on the day it is delivered to the pawnshop, then it will not be difficult to sell it if the client does not repay the debt on time. It will be much more difficult to buy jewelry with an outdated design, so its cost is estimated to be several times lower.
• Brand. The jewelry world has its own brands, the ownership of which is included in the price. These include companies such as Cartier, Chopard, Graff, Bvlgari, etc. Gold jewelry made under the brands of these brands will be appreciated in good pawn shops.

Who can donate gold to a pawnshop?

Only a person who has a passport and has reached the age of majority, that is, 18 years, can bring gold to a pawnshop. You can return gold items handed over to the pawnshop in the future only in person and using your passport.

Attention! Persons under 18 years of age are not allowed to participate in transactions with pawn shops.

Citizens resorting to handing over gold to a pawnshop should also remember that the item being pledged must be authorized for sale.

What you can't take

Not all gold can be donated. Some things will not be accepted from clients, and for trying to hand over washed precious metals you can get a real criminal sentence. The following items cannot be sold in pawn shops and other purchases:

• gold or other precious metal in nuggets, concentrate, plates, wire or parts;
• elements of dental prosthetics;
• waste from precious metals in the form of shavings and saw cuts;
• Gold leaf;
• orders and medals containing gold and other valuable metals;
• gold in the form of parts for laboratory use and elements for industrial use;
• jewelry semi-finished products.

What kind of gold can be donated?

The pawnshop accepts gold of absolutely all grades: 585, 375, 958, 750, etc. Products in any condition will be purchased or stored: scrap gold, old or new jewelry. Some alloys, such as white gold, are reluctant to be accepted. This is explained by the fact that small pawn shops have a minimal set of testing reagents, so it is difficult to distinguish white gold from other alloys. In addition, pawnshops are reluctant to deal with unassembled gold because they are afraid of counterfeits.

The legislation regulates admission restrictions:

• gold leaf;
• weapons made of precious metals;
• raw (slice) gold;
• cartridges.

Rules for accepting gold

Firstly, it must be said that the activities of pawnshops are absolutely legal. You should not be afraid of these establishments, since their licensing is carried out in strict accordance with the legislation of the Russian Federation. If you decide to use the services of a pawnshop, you thereby agree with the rules for accepting gold and conducting a transaction. Each institution develops its own rules, however, below we will look at the general conditions under which most pawnshops operate.

Pledge agreement

When issuing a loan secured by a gold item, a pledge (storage) agreement is drawn up between the pawnshop and the client. The borrower is given one copy of the pledge ticket, issued on a strict reporting form (SSR).

Important! In case of loss, the deposit ticket is canceled and a duplicate with a new number is issued in return, which is filled in similarly to the lost ticket.

The pledge ticket states:

• Client's full name;
• date of birth of the mortgagor.

The pledge agreement provides the following information:

• description of the gold item;
• full assessment amount;
• term of purchase of the object;
• pawn loan amount;
• the amount of interest on the loan;
• amount of payment for services.

Important: If the product is not claimed within the period specified in the contract, the pawnshop has the right to sell it.

The client puts a signature on the pledge ticket, which means his agreement with the terms of the agreement.

Collateral assessment

The assessment amount must be agreed upon with the client. If the borrower does not agree with the value established by the expert, the collateral agreement cannot be concluded.

The loan amount provided to the client against collateral is set by the pawnshop depending on the valuation of the gold item, the loan term and the client’s credit history (if he has previously collaborated with this pawnshop).

Storage of collateral

The storage period for gold is determined by the client’s wishes, ranging from 1 day to 1 year with the right to re-pledge.

Pawnshop employees are required to store the client’s collateral after the redemption date for a grace period established by law:

• 1 month – upon execution of a pledge agreement;
• 2 months – if a storage agreement is drawn up.

The client has the right to demand the collateral (re-pledge or partially repay the loan) at any time until the end of the grace period, having paid all the pawnshop's claims.

Payment

The client pays for the use of the loan and pawnshop services at the rates established by the establishment. The payment amount is specified in the contract.

When redeeming gold ahead of schedule, settlement is made on the actual date of redemption.

Overdue

In case of untimely fulfillment of obligations to purchase the product, the client, in addition to the main payments, additionally pays a penalty.

Issuance of collateral

The gold product is issued to the client upon presentation of a passport and a deposit ticket.

Attention! If a pawn ticket is lost, the client should immediately contact the pawnshop with a written statement about the incident and receive a duplicate. Otherwise, the pawnshop is not responsible for the safety of the gold.

If gold worth more than 600,000 rubles is handed over to a pawnshop, then the pawnshop employees are required to notify the tax office about this transaction. After this, during the next tax period, the client is required to indicate the amount of income received in a detailed report. There are no restrictions by law on the number of gold products that can be donated or sold.

Criteria for favorable interest rates

Aspects that characterize profitable cooperation with a pawnshop:

1. In case of early repayment, funds for the remaining period are not charged - payment occurs only for the time the item was pledged.
2. Transparency of the contract - the obligations of the parties are described at the conclusion
3. Low percentage
4. If you handle the matter wisely, the debt can be closed with minimal overpayment. Our pawnshop has a promotion where the daily interest rate can be 0.18%.

You should follow simple rules:

1. If you use the service regularly, it is better to contact the same company. For regular clients with a good reputation, more flexible conditions are provided.
2. Payments should be made on time, or better yet, ahead of schedule, thereby not only earning yourself a reputation as a respectable client, but also saving your own money.
3. Take only the amount that is needed. If the assessment amount exceeds the required amount, you can use only part of it, so you will save on the overpayment.

Maximum bet

The value is determined by the Central Bank of the Russian Federation. If an organization exceeds the established rate, this is a direct violation of the law. For the first quarter of 2021, the highest allowed interest rate for the issuance of funds for companies accepting jewelry is 150.924%.

Minimum bid

There are very profitable offers with 0.2-0.3% per day. But don’t rush to rejoice and engage in a premature calculation procedure; first, you should note that such rates are provided subject to certain conditions:

• the loan amount must be at least 200,000 rubles;
• the next time you apply, the interest rate will not change;
• valid for one deposit ticket only.

But despite the above, there are certainly benefits. Therefore, not all lending organizations can provide such offers - here the client has the right to take the initiative. Ask the question whether it is possible to draw up an agreement for 0.2-0.3%.

If the redemption period is coming to an end, and it is impossible to pay for the collateral, then it is worth using, which allows you to extend the collateral period without repaying the loan amount. The client pays only the interest established by the pawnshop.

How does Remortgage work?

Let's say you handed over a gold item, and the redemption time is coming to an end. If you leave everything as is and do not go to a pawnshop, the gold will be sold. What to do? Take your passport, pawn ticket and go to the pawnshop. Ask the employee about . You will only need to pay the interest that has accumulated during the period of using the loan. The principal debt remains in its original size. If you have the funds, you can pay at least part of the debt along with interest.

You can redeem the pledged item when the required amount becomes available. To do this, you will only need to repay the principal debt, since the interest will already be paid.

In conclusion, I would like to note that with the help of a pawnshop it is recommended to solve one-time short-term problems. If you want to sell your jewelry for the most profit, then choose a pawnshop that evaluates items not only by the weight of the item and sample size, but also taking into account its other advantages.

How to hand over gold to a pawnshop - everything you need to know
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Pawnshops as an alternative to banks and microfinance organizations

People often turn to pawnshops not for the sale of precious metals, but for a loan secured by valuable property. In essence, a pawnshop is an analogue of a bank or microfinance organization, only more loyal to its customers.

What are the advantages of pawn shops? Banks issue loans at a relatively low interest rate, but obtaining a loan, even a small amount, takes a long time. Proof of income and a good credit history are required, plus recently banks have begun to impose insurance, which increases the amount of repayment. In principle, no one has ever heard anything positive about microfinance organizations, but they are famous for gigantic interest rates and collecting debts by force.

Pawn shops are in all respects much better when you need to get money on the same day for a short period of time. They only require one identification document and collateral. Moreover, they will not even demand repayment of the debt if the client for any reason was unable to repay it, because all their financial costs are compensated by the sale of the collateral.