What Do Pawn Shops Pay for Gold?

How the Pawn Shop Model Works

Pawn shops make money two ways: by lending against your gold as collateral (a pawn loan) and by buying your gold outright for resale. In a pawn loan, you leave your gold and receive a cash loan — typically 25–40% of the gold's melt value. You pay back the loan plus interest to retrieve your item. If you do not return, the shop keeps your gold and sells it.

When you sell outright, pawn shops pay more than they would for a loan — usually 40–70% of melt. The shop needs this margin because it must cover overhead (rent, staff, security), assume the risk of holding inventory, and profit when reselling to a refiner. A pawn shop that buys your gold at 50% of melt will typically sell it to a refiner for 85–90%, keeping the difference.

This is why pawn shops pay less than refiners or dedicated gold buyers — they are a middleman. The convenience of walking in and getting cash in minutes is what you pay for in the lower rate. If you have time to get quotes from other buyers, you can almost always do better.

Tips for Negotiating at a Pawn Shop

• 1

  Know your melt value before you walk in. Use the calculator on this page to find the exact melt value. Write it down. If the offer is far below your calculation, you will know immediately.

• 2

  Bring all your gold at once. Pawn shops pay a higher percentage for larger quantities. A single ring might get 40%, while a bag of 10 items could get 60% or more.

• 3

  Mention competing offers. Say you have quotes from a jeweler or online buyer. Pawn shops know they compete with other buyers and will often raise their offer to keep the sale.

• 4

  Be ready to walk away. The willingness to leave is your strongest negotiating tool. If the shop will not raise the offer, try another pawn shop or a dedicated gold buyer.

• 5

  Sell, do not pawn. A pawn loan charges interest (often 10–25% per month) and you risk losing your gold. If you do not want the item back, sell it outright — you will get more than the loan amount.