For those considering selling scrap gold or collectable coins, the surge in gold prices has made the financial outlook even more obvious as Pawnbrokers, the UK’s high street, reported new customers.
In late April, Gold made a record $3,500 in late April as investors poured into safe haven assets amid market volatility released by President Trump’s trade war. While the price has now retreated from its recent highs, PawnBrokers said it prompted more people to ask about the value of gold items that can be sold or pawned.
Sutton & Robertsons, which has four stores in central London and serves online, said first-time pawn customers increased by 30% year-on-year. About 90% of the loans are resistant to gold, luxury watches and jewelry, and can increase the spot price of gold up to 75%.
Managing Director Jim Tannahill said his clients — many of them entrepreneurs and small business owners — realized they could draw on more gold items than ever before. H&T, the UK’s largest pawn shop, reported record profits on full-year results in March, saying the high gold price has raised the number of new PawnBroking customers to an all-time high.
However, others want to sell their belongings and cash. Sutton and Robertson’s average monthly gold purchases have increased by 105% since September last year, compared with the first eight months.
One of the biggest trends is collectors looking to sell their gold coins. The Royal Mint sells British sovereignty and Britannias' profits with the advantage of exempting from capital gains taxes. “If you’ve been collecting them for years, you’ll do a great job,” he said, adding that many people use them as gifts for their children and grandchildren.
However, customers also realize the high value of unwanted or broken gold jewelry items. For example, over the past three years, the scrap price of a man's chunky golden wedding band has increased from £300 to £400 to £500-£600, depending on the exact weight and carats. A woman's wedding ring is worth about half the speed. A 18-carat chain chain chain chain weighing about 15 grams is ordered to 700-£900.
Those considering selling gold items can do some detective work on the potential value of the item before contacting the buyer. Tannahill recommends looking for signs for gold items that indicate their purity. The numbers are 9, 18 or 22 represent carats, which can also be displayed as 375, 750 and 916 respectively (this vs. the percentage of items made of pure gold; the percentage of goods of 37.5%; lasting 9 carats, etc.).
The real-time gold price for each Grame data can be found on trade sites such as planners (although dealers tend to offer 10-15% less than this).
One potential drawback of the dramatic rise in gold is that the intrinsic value of many items (such as antique watches) has been replaced by the scrap value of gold it makes.
Tannahill said decorative artworks and gold jewelry from brands such as Cartier and Tiffany can "beyond their gold weight" as long as they are in good condition.