Wondering how much a pawn shop will pay for your gold or silver? This guide gives you a repeatable estimate based on metal purity, weight, spot price, and the buyer’s margin—plus a preparation checklist to help you compare offers before you sell or request a pawn loan.
Overview
A pawn shop does not usually price precious-metal jewelry from the retail price you paid. The starting point is generally the item’s recoverable metal content, followed by deductions for testing, refining, resale risk, operating costs, and the shop’s required margin. A branded piece, rare coin, working luxury watch, or jewelry with valuable gemstones may be worth more than its scrap-metal value, while damaged or unmarked items may receive a more conservative offer.
The most useful first estimate is the item’s melt value: the theoretical value of its precious-metal content at a stated spot price. A shop’s cash offer or loan amount will usually be below that figure, but the difference varies by shop, item, market conditions, and whether the transaction is a sale, pawn loan, or consignment arrangement.
Use the estimate as a comparison tool, not a guaranteed quote. A local shop must inspect and test the item before making a final offer. For broader context on appraisals, see How to Prepare Jewelry for a Pawn or Resale Appraisal.
How to estimate
Calculate gold and silver separately when an item contains more than one metal. The basic formula is:
Estimated melt value = weight × purity × spot price per unit of weight
Make sure the units match. If the spot price is stated per troy ounce, convert the item’s weight to troy ounces. One troy ounce contains approximately 31.1 grams. If you are using a price per gram, keep the weight in grams.
For gold, purity is commonly expressed in karats. Divide the karat rating by 24:
- 10-karat gold: 10 ÷ 24 = 0.417, approximately
- 14-karat gold: 14 ÷ 24 = 0.583, approximately
- 18-karat gold: 18 ÷ 24 = 0.750
- 24-karat gold: 24 ÷ 24 = 1.000
For silver, hallmarks such as 925 commonly indicate approximately 92.5% silver, while 999 indicates approximately 99.9%. A hallmark is useful, but it is not a substitute for testing. Plated, filled, mixed-metal, and counterfeit items can look similar to solid precious metal.
After calculating melt value, apply a planning payout band. The following table is an editorial estimating tool, not a current price list or promise of what any particular pawn shop will pay:
| Transaction planning scenario | Illustrative share of calculated melt value | What may affect the result |
|---|---|---|
| Conservative cash-offer scenario | About 50%–60% | Uncertain purity, low liquidity, refining risk, or a shop pricing cautiously |
| Middle planning scenario | About 60%–70% | Clearly identified metal, ordinary jewelry, and a shop with regular precious-metal demand |
| Stronger offer scenario | About 70%–80% | Accurate testing, competitive local market, desirable form, or a shop seeking that material |
These bands should be refreshed when spot prices move materially and should never replace quotes from multiple qualified buyers. A pawn loan may be lower than a direct sale offer because the shop must account for redemption risk, loan terms, and the possibility that the item is not reclaimed. Read Pawn Loans Explained before comparing a loan amount with a cash-sale price.
Inputs and assumptions
Weight: Ask whether the quoted weight includes stones, clasps, springs, or other nonmetal parts. A scale reading for the whole piece may overstate the precious-metal weight. Do not remove stones yourself; a professional can assess the item without damaging it.
Purity: Look for stamps such as 10K, 14K, 18K, 925, or 999, but treat them as clues. Shops may use electronic testers, acid testing, X-ray fluorescence, specific-gravity checks, or a combination of methods. Ask which parts were tested and whether the result applies to the entire piece.
Spot price: Use a clearly dated reference price and record whether it is quoted per gram or per troy ounce. Spot prices change, and a shop may use its own buying price rather than the headline market quote.
Item category: A plain broken chain is often evaluated differently from a signed designer piece, an antique, a collectible coin, or a ring with a documented gemstone. Separate the metal estimate from possible design, brand, rarity, or stone value.
Transaction type: A direct sale gives you cash and transfers ownership. A pawn loan gives you a loan secured by the item, with interest, fees, and a redemption deadline. Consignment may produce a higher eventual selling price but usually takes longer and is not the same as an immediate payout. For a side-by-side decision framework, see Pawn, Sell, or Consign?
Worked examples
Gold example: Suppose a tested ring weighs 10 grams, contains no significant removable stones, and tests as 14-karat gold. Its estimated pure-gold weight is 10 × (14 ÷ 24), or about 5.83 grams. If the dated reference price you choose is represented by P dollars per gram, the estimated melt value is 5.83 × P. Applying a planning band of 60%–70% produces a rough offer range of 3.50P–4.08P dollars. Replace P with the spot-price input you are using on the day of the estimate.
Silver example: Suppose a marked sterling-silver item weighs 100 grams and tests at an assumed 92.5% purity. Its estimated silver content is 92.5 grams, or 2.97 troy ounces using the approximate 31.1-grams-per-troy-ounce conversion. Multiply 2.97 by the dated silver price per troy ounce to estimate melt value, then apply the chosen planning band. A shop may adjust the result if the piece includes non-silver parts, has collectible value, or requires additional testing.
These examples show why weight alone is not enough. Two items with the same scale weight can produce very different estimates because their purity, construction, and resale prospects differ.
When to recalculate
Recalculate before each serious selling or borrowing decision, especially when the spot price has moved noticeably since your last estimate. A practical editorial rule is to revisit the calculation monthly or whenever the relevant metal benchmark changes by more than 5%. Also recalculate after receiving a confirmed test result, removing an assessed nonmetal component, or discovering a brand, hallmark, coin date, or gemstone document that could add value beyond scrap.
Before visiting a pawn shop, complete this checklist:
- Photograph the item and record its total weight without altering it.
- Note every hallmark, maker’s mark, serial number, and visible damage.
- Record the date, source, unit, and currency of your spot-price input.
- Calculate melt value using confirmed or clearly labeled assumed purity.
- Bring a valid government-issued ID and any ownership, purchase, appraisal, grading, or authenticity documents available. Requirements vary by location and shop.
- Ask whether the quote is for a sale or a loan, what fees apply, how long the quote is valid, and whether stones or collectible value were considered.
- Compare at least two offers when practical, including the final cash amount and any loan cost—not just the percentage discussed.
For a broader way to compare offers, use the Pawn Value Calculator and review How to Compare Pawn Shop Offers. The goal is not to predict an exact payout from a formula; it is to arrive informed, identify weak assumptions, and recognize whether a shop’s final explanation makes sense.
