Is Buying a Gold Chain From a Pawn Shop a Good Idea?

Yes, buying a gold chain from a pawn shop is a good idea when the shop is licensed, the chain is tested and you know its karat and weight. A pre-owned gold chain is the same metal as a new one. Gold does not wear out, and a cleaned and polished chain looks new. The savings come from skipping the retail markup that a new chain carries for design, brand and store overhead.

The way to tell a good price from a bad one is to work out what you are paying per gram. Ask for the chain's weight in grams and its karat, then compare the price against the gold content. You can also check the stamp with some confidence. Under United States marking rules, as summarized by the jewelry trade group MJSA, a karat stamp must be accompanied by the maker's registered trademark, and karat gold can fall short of its stamp by no more than three parts per thousand. A chain stamped 14K with a maker's mark beside it, sold by a shop that will put it on a scale in front of you, is about as transparent as a jewelry purchase gets.

How Do You Check the Price of a Gold Chain?

Melt value is what the pure gold in the chain is worth. Any price above that is the premium for workmanship and retail handling. Here is the check, with an example gold price used only for the math:

1. Ask for the weight. Say the chain is 15 grams of 14K.

2. Multiply by 0.583 for 14K. That is 8.75 grams of pure gold.

3. Multiply by the gold price per gram. At $96.45 per gram, the gold content is about $844.

4. Compare that with the asking price. The difference is the premium.

A new chain at a mall jeweler often carries a large premium over melt value. A pre-owned chain is usually priced much closer to its gold content, which also means it holds its value better if you sell it later.

What Should You Look at Before Buying?

• The stamp. Look on the clasp or the end tab for 10K, 14K, 18K or the fineness numbers 417, 585 and 750. Marks such as GP, GF or HGE mean plated or gold filled.

• Solid or hollow. Hollow chains cost less for the look but dent easily and are hard to repair. Ask which it is and let the weight confirm it.

• The clasp. A lobster clasp is stronger than a small spring ring. Open and close it a few times.

• The links. Run the chain through your fingers. Feel for kinks, stretched links and rough solder spots from old repairs.

• The length. Try it on. Common lengths for men are 20 to 24 inches and for women 16 to 20 inches.

Which Chain Styles Hold Up Best?

Some link styles are sturdier than others:

• Curb, figaro and mariner: flat, strong links that are easy to repair

• Rope: strong when solid, fragile when hollow

• Box and wheat: durable and good for pendants

• Herringbone and snake: smooth and bright, but they kink and are difficult to fix

If you plan to hang a pendant, choose a chain heavy enough to carry it.

Is Pawn Shop Gold Tested?

A reputable shop tests gold when it buys and before it sells. In Pennsylvania, licensed precious metals dealers also record every purchase, report it to the county district attorney and hold it for five full working days before it can be sold or altered. That process is one reason a licensed shop is a safer place to buy pre-owned gold than a stranger online. Our post on how pawn shops test for real gold explains the testing.

What If You Cannot Pay All at Once?

Ask about layaway. It lets you hold a chain with a deposit and pay it off over time. See how layaway works for jewelry.

FAQ

Are pawn shop gold chains real?

At a licensed shop that tests its jewelry, yes. Ask to see the stamp and the weight.

Is a pawn shop cheaper than a jewelry store for gold chains?

Pre-owned chains are generally priced closer to their gold value than new retail chains.

Can you negotiate on a gold chain?

Often, yes. Knowing the gram weight and the day's gold price gives you a fair starting point.

Can a chain be shortened after I buy it?

Yes. A jeweler can remove links and reattach the clasp.

Shop Gold Chains at The Pawn & Jewelry Exchange

The Pawn & Jewelry Exchange has served Greensburg since 2005. Our jewelry collection includes gold chains and bracelets, and each item is inspected and professionally cleaned before it goes into one of our 20 showcases. Layaway is available, and our jeweler is on site if a chain needs shortening. Visit 206 E. Pittsburgh St. or browse our jewelry sales page.

Visit The Pawn & Jewelry Exchange or call (724) 836-7296 today. Contact us for more information.