Back to home
in Finance

What You Need to Know Before Pawning Gold

  • October 29, 2015
  • By Grace
What You Need to Know Before Pawning Gold

Selling your used and previously loved gold can be a tricky affair. Here is a small hand full of tips that will be sure to make your experience in the pawn shop golden!

Every now and again it is typical for a gold owner to take an inventory of their gold collection and decide to part ways with a number of gold items. These precious metal items may be gold jewellery, or perhaps they might be gold bars, collectible gold coins, or otherwise.

And yet once the decision to sell gold online or in pawn shops in Melbourne like may have been a difficult enough decision to make –it could wind up only getting harder. The average seller of gold does not know what they do not know, so this gold seller’s guide in the form of a blog post is intended to shed a little light on all of the important things one needs to know before they sell their gold (and other precious metals, for that matter).


What to Know Before You Sell Gold

1. Know the Karat of Your Gold

One of the most important things you will need to know before you head to a pawn shop in Melbourne to sell your unwanted gold is what karat the gold is.

There are several ways to figure out your gold’s karat, but for the sake of brevity we will look at the top two ways; looking for karat markings on your gold, and the gold rub test.

Most pieces of gold, whether in the form of jewellery or in the form of a gold bar will have the karat clearly marked on the gold object itself. If your gold jewellery is a wedding band or any other type of gold ring, look on the inside of the band where the band touches your skin.

If you would like to verify the authenticity of the marking you can complete a “rub test”. Using nitric oxide and a “touch stone” found in a gold testing kit, rub your gold with the touch stone. A little gold residue should rub off. Once it rubs off onto the touch stone, apply nitric oxide. If the colour of the gold residue remains unchanged, you have yourself some real solid gold that is not fake, tainted with other metals, or gold leaf.

Different karats usually require different nitric oxide solutions so be sure to use a quality gold testing kit from a reputable gold testing kit supplier. And of course, if you want to be totally sure –take your gold items to a reputable Melbourne pawn shop and allow them to have a look at it.

Once you have learned of the karat of your gold pieces, divide it into groups based on karat.


2. Know the Weight of Your Gold Items

In order to accomplish this you can skip purchasing an actual gold scale in favour of a proper high quality digital food scale. Weigh your gold and keep track of the weight and karat of each piece on a piece of paper or a spreadsheet.

3. Know Who You Can Trust

If you are going to sell your gold, take it to a name you can trust. If you are unfamiliar with your local Melbourne pawn shop or there is not one close by, check out

However, should you find yourself in a seedy looking pawn shop, never leave your gold in the hands of a stranger, and watch their fingers. Some gold buyers have fast fingers and will take it to the back or swap it with a similar but less valued item right in front of your eyes without your knowledge! It really happens.

Any thoughts to add? Let us know in the comments!


By Grace, October 29, 2015
About Little Modernist
This site is designed to help you live your best life. We know how overwhelming life can be, so we have designed this blog to focus on the essentials: how to get ahead financially, how to improve your health and fitness, and how to make the most of your free time.
Like Us On Facebook
Facebook Pagelike Widget