Why one shop pays more for your gold than the next: what pawnbrokers are really comparing

Mark Kurkdjian
Dec 18, 2025
2 min read

You notice big differences in offers for the same gold ring. That gap isn't random — it's a mix of resale math and risk appetite.

The real issue

Gold isn't priced by sentiment. It's priced by the route a buyer plans to take: melt it for metal, clean and resell it as jewellery, or hold until demand changes. Each route has different costs and risks, and those show up as lower or higher offers. A shop that plans to melt will deduct refining costs, possible impurities, and a margin; a shop that can sell it on the counter or online will pay more because they can capture retail value.

The pawnshop play (Vancouver)

First, think like a short-term reseller. A pawnbroker looks at how fast that gold will convert to cash. If the shop has steady foot traffic or an established online channel for jewellery, the broker will pay closer to retail because resale is quick. If resale would mean melting, shipping to a refiner, or long storage, the offer drops to cover those friction costs.

Second, factor in verification and fraud risk. Testing tools (acid tests or XRF machines) and experience change how confident a shop is about purity and authenticity. If a pawnbroker doubts the karat mark or suspects aftermarket plating, they build a safety buffer into the offer. That buffer varies by shop depending on the accuracy of their testing and how many suspicious items they see in their inventory.

Third, remember overhead and cash needs. Smaller shops with low rent and steady buyers can push higher. Shops with tighter cash flow, higher rent, or longer resale cycles need bigger margins and therefore bid lower. Also know that some shops target retail customers and will pay more for well-branded or repairable pieces, while others buy only for scrap weight and won't price brand or design into the offer.

Counter checklist

Know the route: ask whether the shop plans to melt or resell the piece.
Verify purity: ask how they test karat and whether they'll show the result.
Compare spreads: ask what percentage above or below spot price they use for melt-value offers.
Check liquidity: prefer buyers who sell jewellery fast (retail/online) over those who rely on refiners.
Inspect condition impact: understand deductions for stones, damage, or repairs.
Get same-day offers: spot price moves; compare offers within hours, not days.
Stay calm and walk away: your leverage is moving the item to a buyer who values it differently.