Like all pawn shops, Charleston pawn shops fork over the most competitive rates they can for gold that they buy or issue a collateral-based loan in exchange for. Even though people think the appraisal process is mysterious, it’s not. Here’s a basic rundown.
The Purer the Better
When selling gold, higher purity always fetches more money. It’s still common in the states to measure and designate gold purity in karats (K), the “K” denoting parts pure per 24 parts total. Thus, a 10k gold chain is 10 parts pure gold and 14 parts other metals and alloys.
There is no such thing as totally pure gold. The purest is roughly 99.99 percent pure. Nevertheless, the higher in pure gold a sample is, the more valuable and desirable it is.
When gauging collateral-based loans for gold or outright purchase, purity tops the list of priorities. Second is the sheer beauty of the piece and its likelihood of selling. Pawnshop experts generally know what sells in their market and what doesn’t, so offered prices for gold always reflect how likely the piece is to sell.
The Basic Math of a Collateral-Based Loan
When one pawns gold, the loan offered has an interest rate of about 10 to 25 percent the total amount of the loan: $10 to $25 interest on a $100 loan, for example. Loan periods typically last about 90 days. Paying just the interest at the end of the loan period lets one renew the pawn period for another 90 days.
Pawn, sell or buy gold today at Gene’s Jewelry & Pawn, a family-owned Charleston pawn shop offering the best rates and flexible repayment terms for more than 30+ years.
