Quick answer
For an outright sale, pawn shops typically pay 30 to 60 percent of a gold piece’s melt value; for a pawn loan, expect 25 to 60 percent of melt as principal, plus monthly interest and fees until you redeem.
The offer is always built on the same equation: current spot price times karat purity times weight, minus the shop’s discount to cover margin and resale risk. Jewelry buyers and refiners frequently pay more on the same piece because their business model resells or refines the metal directly. Knowing the melt floor before you walk in is the single most useful piece of leverage you have at the counter.
Two prices for the same piece: loan vs outright sale
Every pawn transaction is either a loan against your gold (collateral you can redeem later) or an outright purchase (the shop owns it the moment you sign). These two prices are almost never the same, and the gap is the first thing to understand before you accept any number at the counter.
An outright sale is a one-step transaction. The shop tests, weighs, and calculates a buy price, hands you cash, and takes title to the piece. The offer typically runs 30 to 60 percent of melt value on standard karat jewelry, with the higher end reserved for cleaner pieces, common karats (14K especially), and quiet shops that need inventory.
A pawn loan is a short-term secured loan. The shop still tests and weighs the piece, but the number they quote is the loan principal, not the sale price. That principal usually runs 25 to 60 percent of melt on jewelry, with the exact range set by state pawnbroker law, the shop’s risk tolerance, and how confident they are that you will redeem. On top of the principal you pay interest and storage fees each month, capped by state statute (see the Goldiew overview of pawn shop interest rates and fees by state). If you forfeit, the shop takes the piece and resells it, which is why the loan number is set well below the eventual resale price.
How the offer is calculated, step by step
Every pawn shop, cash-for-gold buyer, and refiner uses the same arithmetic. Only the discount at the end changes. Understanding the four inputs lets you predict the offer within a few dollars before you cross the counter.
- Purity: the shop confirms karat by hallmark, magnet, acid, electronic tester, or XRF. Details on each test are in the Goldiew guide on how pawn shops test and value gold.
- Weight: the piece is placed on a calibrated legal-for-trade scale (NIST Handbook 44 Class II, with a visible state or county inspection sticker).
- Fine-gold weight: gross grams multiplied by the karat purity decimal (14K = 0.585, 18K = 0.750, etc.).
- Offer: fine-gold weight multiplied by the current spot price per gram (spot per troy ounce divided by 31.1035), multiplied by the shop’s payout percentage.
The first three steps are the melt value. The fourth step (payout percentage) is the entire negotiation. If you know spot on the day, karat, and weight, you know the melt floor before you walk in. Every dollar below that number is the shop’s margin. Every dollar above it is a sale price the shop will not offer.
Typical percentage-of-melt ranges by channel
The table below reflects payout ranges commonly observed across United States gold-buying channels. Ranges vary widely by state law, shop policy, weight of the lot, karat, and spot volatility. Treat the numbers as a starting point, not a promise.
| Channel | Purchase (percent of melt) | Loan (percent of melt) | Why the range |
|---|---|---|---|
| General pawn shop, walk-in | 30 to 60 percent | 25 to 60 percent | Widest discount; shop absorbs test cost, cash-flow risk, and eventual resale margin. |
| Dedicated cash-for-gold or scrap gold buyer | 60 to 80 percent | Rarely offered | Higher volume, tighter margin, sells directly to a refiner. |
| Independent jeweler (buys estate or unwanted gold) | 50 to 75 percent | Rarely offered | Selective; pays more for pieces they can resell as jewelry (branded, hallmarked, current styles). |
| Mail-in refiner (bulk lots by mail) | 75 to 95 percent | Not offered | Highest payout on bulk lots of the same karat; shipping and lock-in period apply. |
| Bullion coin buy-back (American Eagles, Buffalos, Maple Leafs, Krugerrands) | 90 to 99 percent of spot | Not typical | Instantly liquid; resale market is deep and standardized. |
Two patterns show up across every category. Payout climbs with weight (a 200-gram bulk lot beats a 5-gram ring), and payout climbs with karat purity (24K and 22K pieces trade closer to melt than 10K, because refining cost is a smaller percentage of the payout). A 5-gram 10K piece at a pawn shop sits in the worst zone of both curves; a 100-gram lot of 22K jewelry at a refiner sits in the best zone.
Karat math: worked example on a real chain
Take a 20-gram 14K gold chain. Purity of 14K is 0.585 decimal, so the fine-gold weight is 20 grams multiplied by 0.585, which equals 11.7 grams of pure gold. At a spot price of 2,000 dollars per troy ounce, per-gram spot equals 2,000 divided by 31.1035, which is about 64.30 dollars per gram. Melt value is 11.7 multiplied by 64.30, or roughly 752 dollars.
Same chain, four channels, one day:
- Pawn shop outright sale at 40 percent of melt: about 301 dollars in cash.
- Pawn loan at 40 percent of melt: about 301 dollars as principal (redeemable with interest per state cap).
- Cash-for-gold buyer at 70 percent of melt: about 526 dollars.
- Mail-in refiner at 88 percent of melt on a bulk lot: about 662 dollars.
The tests all confirmed the same 14K purity. The scale showed the same 20 grams. Spot did not move. The 361-dollar gap between the pawn counter and the refiner is entirely the buyer channel, not the piece. The Goldiew gold value calculator gives you the melt floor for any karat and weight at the current spot price, which is the number every channel is discounting from.
Why a pawn loan pays less than an outright sale
Even at the same shop, on the same piece, on the same day, the loan number usually comes in below the outright buy number. Three reasons explain the gap.
First, the shop is fronting cash that may never come back as cash. If you redeem, the shop earns only the interest and fees; the principal is returned in exchange for the piece. To make that model profitable across a portfolio, the loan-to-value ratio has to sit below the resale value the shop expects if you forfeit. State statute usually reinforces this by capping loan interest and pushing the shop to discount principal to compensate.
Second, the shop bears storage and administrative cost during the loan term. Every state’s pawnbroker act sets a minimum holding period (30 days is common, some states run to 90 or 120 days), and the shop must inventory, insure, and secure the piece for that period. Details vary by state; see the Goldiew survey of pawn and secondhand dealer laws by state for the specific windows.
Third, forfeiture risk is real but not universal. Industry surveys have long put the redemption rate for pawn loans on jewelry in the 70 to 85 percent range, which means the shop actually recovers most loans as interest income and returns the piece. The 15 to 30 percent of forfeited pieces must resell above the loan principal to cover the losses on any pieces that resell below, so principal is set conservatively to absorb both.
Pawn shop vs jewelry buyer vs refiner: same piece, three quotes
Each channel has a business model that determines both the offer and the friction. The table below summarizes the trade-offs on a typical piece of estate or unwanted gold jewelry.
| Channel | Typical payout on 14K jewelry | Speed | Trade-offs |
|---|---|---|---|
| Pawn shop | 30 to 60 percent of melt | Same visit, cash in hand within 10 minutes | Widest discount; strong for immediate cash or when you want a loan option; loan interest capped by state law. |
| Jewelry buyer (independent jeweler, high-end estate buyer) | 50 to 75 percent of melt, higher for resaleable pieces | Same visit for melt price; several days for jewelry-resale price | Better on branded, hallmarked, or antique pieces; will not touch broken chains or unmarked scrap. |
| Cash-for-gold storefront (dedicated scrap buyer) | 60 to 80 percent of melt | Same visit, cash or check | Volume model; watch scale calibration and the discount to spot they cite. |
| Mail-in refiner | 75 to 95 percent of melt on bulk lots | 7 to 21 days, insured shipping, lock-in period on their spot quote | Best number on high-weight or high-karat lots; you lose the walk-in cash and accept the lock-in. |
| Bullion coin dealer (buy-back) | 90 to 99 percent of spot on eligible coins | Same visit or overnight bank wire | Applies only to standard bullion coins (Eagles, Buffalos, Maples, Krugerrands, common Sovereigns) in resaleable condition. |
The right channel is a function of what you own and how fast you need the cash. A 200-gram lot of 18K estate jewelry belongs at a jewelry buyer or a refiner. A single 5-gram 10K ring you need to convert to cash today belongs at a pawn shop or cash-for-gold storefront. A tube of American Gold Eagles belongs at a bullion dealer, not a pawn counter. The Goldiew comparison of the pawn shop vs gold dealer transaction goes deeper on which piece belongs where.
Negotiation levers you actually control
Pawn payouts are not fixed. Shops open at a comfortable margin, expect a counter, and will move a meaningful amount if you signal that you know what your gold is worth. Six levers actually move the number.
Bring the melt floor. Screenshot the current spot price per gram before you walk in. Multiply by karat and weight yourself. If the shop’s opening offer is under 40 percent of that number on a 14K piece over 10 grams, you have leverage to counter.
Bring competing quotes. A written or emailed offer from another buyer, even a mail-in refiner quote, gives the shop a real number to beat. Shops that want your piece will match or improve on a specific number more readily than a vague “I could get more elsewhere.”
Separate by karat and weigh each piece individually. Do not let a shop lump a 10K ring, a 14K chain, and an 18K bracelet into an averaged karat figure. That averaging always underprices the higher-karat pieces. Ask for each piece to be weighed separately and the offer written out per piece.
Ask what discount to spot they are applying. A confident buyer will name a percentage. A shop that refuses is telling you the discount is the whole game and they do not want it visible. Any legitimate cash-for-gold operation will discuss the discount openly.
Walk out clean if the offer feels off. Nothing changes the offer faster than a customer picking up the piece and heading for the door. Shops know that the customer who leaves rarely returns; a real second offer often appears at the doorway. If it does not, the shop was not the right channel.
Consider the loan option even if you plan to sell. On mid-value pieces, a pawn loan gives you cash today and a 30 to 120 day window to redeem if you find a better buyer. If you never redeem, the shop takes the piece for the loan principal, which is often close to what an outright sale would have paid. This is only sensible if the interest and fees for the redemption window are less than the gap between the loan number and the eventual sale price. Before committing to either path, the pawn vs sell comparison shows which costs less on a typical piece.
When the pawn counter is the wrong channel
Pawn shops are built for speed and secured lending, not for maximum sale price. Three situations argue against the counter.
A single bullion coin (American Eagle, Buffalo, Maple Leaf, Krugerrand) belongs at a bullion coin dealer. Pawn shops treat coins like any other metal by weight, which strips out the numismatic and liquidity premium the coin carries in the bullion market. A dealer buy-back at 90 to 99 percent of spot beats any pawn number on the same coin.
A large bulk lot of same-karat jewelry (100 grams and up) belongs at a mail-in refiner. The refiner payout on 75 to 95 percent of melt is out of reach for any walk-in channel, and the insured shipping and lock-in period are the only real friction. Refiners publish their payout schedule by weight tier, which lets you check the number before you ship.
A branded, hallmarked, or antique piece with resale value as jewelry belongs at a jewelry buyer or a specialty consignment channel, not a scrap counter. A signed Tiffany, Cartier, or Van Cleef piece can trade at multiples of its melt value in the right hand; a pawn shop will still buy it as scrap.
State rules that quietly change the offer
Pawn payouts, loan interest rates, holding periods, and ID and reporting requirements are set by state statute (not federal law) and vary considerably. A few examples illustrate the range.
Pawnbroker interest rate caps range from around 2 percent per month in some states to over 20 percent per month in others, which changes both the shop’s revenue model and the loan-to-value they can afford to offer. Some states also cap storage and service fees; others let the shop set them freely.
State ID and reporting laws require the shop to record your identification, hold the piece for a mandatory police-check period (often 15 to 30 days), and file transaction data with local law enforcement. These rules protect against stolen-goods trafficking and add administrative cost the shop bears, both of which are priced into the payout percentage.
Federal reporting also touches the counter. Cash transactions over 10,000 dollars require the dealer to file IRS Form 8300 (reference at irs.gov). Dealers in precious metals also fall under Financial Crimes Enforcement Network anti-money-laundering rules (fincen.gov) when their annual precious-metal purchases and sales cross statutory thresholds. Neither of these caps what a shop pays you, but both explain why identification is always requested even for small sales.
Get sealed offers from multiple buyers before you accept a pawn quote
The tests confirm what your gold is. The channel decides what your gold is worth. Post one free request on Goldiew’s Sell Gold marketplace and up to 15 verified local and national buyers respond with sealed offers on the same weight and purity, side by side. It is free, there is no obligation to sell, and it typically closes most of the spread that a walk-in pawn number opens by default. You can also browse the Goldiew marketplace to see live buyer listings by category and location before you commit to any single counter.
Frequently asked questions
How much do pawn shops pay for gold?
Most United States pawn shops open at 30 to 60 percent of a piece’s melt value on outright sales of standard karat jewelry, and 25 to 60 percent on pawn loans against the same piece. The exact number depends on karat, weight, current spot price, state law, and how competitive the shop is in your area. Dedicated cash-for-gold buyers frequently pay 60 to 80 percent on the same piece, and mail-in refiners can pay 75 to 95 percent on bulk lots.
Why is a pawn loan number lower than the outright buy price?
The shop is fronting cash they may never recover if you redeem. To make the loan portfolio profitable, the loan-to-value ratio has to sit below the resale value the shop expects on any piece that is eventually forfeited. State pawnbroker statutes cap the interest and fees the shop can charge on the loan, so the shop compensates by discounting principal further than the outright sale price. On the same piece, expect the loan number to come in a few percentage points below the buy number.
Do pawn shops pay spot price for gold coins?
Almost never. A pawn shop treats a gold coin the same way it treats jewelry: by weight and purity, with a discount off spot. A bullion coin dealer treats the same coin as a standardized bullion product and pays 90 to 99 percent of spot because the resale market is instantly liquid. If you have American Eagles, Buffalos, Maples, or Krugerrands in resaleable condition, take them to a bullion dealer, not a pawn counter.
Can I negotiate the price a pawn shop offers for my gold?
Yes, and shops expect you to. Bring the current spot price per gram, know your karat and weight, and ask what discount to spot the shop is applying. Competing written offers from another buyer or a mail-in refiner give the shop a specific number to beat. Separating a mixed lot by karat and asking for a per-piece offer usually raises the total by preventing an averaged-karat discount. The Goldiew guide on whether you can negotiate at a pawn shop walks through the full playbook.
Do pawn shops pay more for higher karat gold?
Yes, both because higher karat contains more pure gold per gram and because the payout percentage tends to climb with karat. A 14K piece pays out on 58.5 percent of its gross weight in fine gold; an 18K piece on 75 percent. On top of that, refiners and shops often discount higher-karat pieces less aggressively because the refining cost is a smaller share of the payout. A gram of 18K gold routinely fetches more than 1.3 times the payout per gram of 14K, on the same day and channel.
What weight of gold is worth taking to a refiner instead of a pawn shop?
Most refiners publish payout percentages by weight tier, and the crossover where a refiner beats a pawn shop by a comfortable margin usually sits above 30 to 50 grams of same-karat gold. Below that weight, the refiner’s per-lot handling cost eats the payout advantage, and the walk-in cash and speed of a pawn or cash-for-gold buyer wins. Above 100 grams of same-karat jewelry, refiners almost always beat any walk-in channel by 15 to 30 percentage points of melt.
Does the pawn shop pay for the diamonds and stones set in a gold ring?
Rarely at a meaningful price. A general pawn shop that buys mostly scrap will exclude the stones from the weight or subtract a nominal amount, and either return the stones to you or price them at a token figure. A jewelry buyer or a jeweler with a stone-setting business will value a certified diamond separately from the metal, sometimes at multiples of the gold melt value. Ask before the piece hits the scale how any non-gold components are being handled, and get the deduction written on the ticket.
Will the pawn shop pay less if my gold has no hallmark?
Usually yes, by a small margin. An unmarked piece has to be tested by acid, electronic tester, or XRF before the shop trusts the karat, and it is harder for the shop to resell as marked jewelry, so it often prices closer to pure scrap even after the tests come back clean. If you can locate the karat mark under a loupe (inside a clasp, on an inner band, or near a bail), point it out; if there is no mark, expect the offer to sit at the lower end of the range for the karat the tests confirm.
How can I check the melt value of my gold before I visit a pawn shop?
You need three numbers: current spot price of gold per troy ounce (widely quoted; also updates on the Goldiew site), karat purity of your piece (10K, 14K, 18K, 22K, or 24K), and weight in grams. Divide spot per ounce by 31.1035 to get per-gram spot. Multiply gross weight by the karat decimal (0.417 for 10K, 0.585 for 14K, 0.750 for 18K, 0.916 for 22K, 0.999 for 24K) to get fine-gold weight. Multiply fine-gold weight by per-gram spot to get melt value. The Goldiew gold value calculator runs the same math against live spot.
Are pawn shop payouts capped by law?
Payouts on outright sales are not capped in any state. Loan terms are: pawnbroker statutes in each state set maximum interest rates, storage and service fee limits, minimum holding periods before forfeiture, and identification and reporting requirements. These rules constrain the loan structure and the shop’s revenue model, which is why loan payouts on the same piece vary noticeably from state to state. The Goldiew survey of pawn shop interest rates and fees by state summarizes the caps that matter most.
Sources
- FTC Jewelry Guides (16 CFR Part 23): karat tolerance rules, quality-mark requirements, and unfair or deceptive practices in the jewelry industry.
- National Gold and Silver Marking Act (15 USC 291 to 298): federal statute on gold and silver quality marks and required trademark accompaniment.
- NIST Handbook 44: specifications, tolerances, and other technical requirements for weighing and measuring devices used in commercial transactions.
- Consumer Financial Protection Bureau: consumer credit protections and short-term small-dollar loan guidance that touch pawn transactions.
- IRS Form 8300: cash payment reporting threshold at 10,000 dollars for dealers, including pawnbrokers.
- Financial Crimes Enforcement Network (FinCEN): anti-money-laundering rules that apply to dealers in precious metals.
- Better Business Bureau: pawn shop and dealer accreditation, complaint history, and consumer reviews.
- Goldiew: how pawn shops test and value gold (the full counter workflow)
- Goldiew: pawn shop vs gold dealer (which channel fits which piece)
- Goldiew: can you negotiate at a pawn shop
- Goldiew: how pawn loans work (plain-English mechanics)
- Goldiew: pawn shop interest rates and fees by state
- Goldiew: pawn and secondhand dealer laws by state overview
- Goldiew: gold value calculator (the melt floor)
- Goldiew pawn shop directory
- Goldiew Sell Gold marketplace
- Goldiew marketplace