If you have old jewelry, coins, or scrap gold sitting in a drawer, you may be wondering what it’s actually worth. The answer depends on three main factors: the purity of the gold, how much it weighs, and the current market price. Once you understand how those three pieces fit together, you can walk into any gold buyer with confidence.
At Florida Cash, we’ve been evaluating gold for St. Augustine residents since 1992. In this guide, we’ll walk you through exactly how pawn shops determine gold value, step by step, so there are no surprises when you get an offer.
The Three Factors That Determine Gold Value
Every honest gold evaluation comes down to the same formula:
Purity (karat) x Weight x Current spot price = Melt value
The melt value is what the raw gold in your item is worth on the open market. It’s the starting point for almost every offer you’ll receive. Some items are worth more than their melt value, and we’ll cover those exceptions later. First, let’s break down each factor.
Factor 1: Karat (Gold Purity)
Pure gold is soft. Too soft, in fact, to hold up as everyday jewelry. That’s why most gold is mixed with other metals like copper, silver, or zinc. The karat system tells you how much actual gold is in the mix.
Here’s a quick reference:
| Karat | Gold Content | Common Uses |
| 24k | 99.9% pure | Bullion, some coins |
| 22k | 91.7% | High-end coins, some jewelry |
| 18k | 75% | Fine jewelry |
| 14k | 58.3% | Most American jewelry |
| 10k | 41.7% | Budget-friendly jewelry |
This matters more than most people realize. A 10k gold chain contains less than half the gold of a 24k item of the same weight. That’s why two rings that look nearly identical can receive very different offers.
Most jewelry has a small stamp, called a hallmark, that shows the karat. Look inside the band of a ring or near the clasp of a chain. You might see “14k,” “585” (which means 58.5% gold, the European marking for 14k), or “750” for 18k.
Factor 2: Weight
Gold is weighed in troy ounces, grams, or pennyweights (dwt). A troy ounce is slightly heavier than a standard ounce, which trips up a lot of first-time sellers.
Here are the conversions worth knowing:
- 1 troy ounce = 31.1 grams
- 1 pennyweight (dwt) = 1.555 grams
- 20 pennyweights = 1 troy ounce
A reputable pawn shop will weigh your gold on a calibrated scale right in front of you. If a buyer weighs your items out of sight, that’s a red flag. At Florida Cash, every evaluation happens at the counter where you can watch the whole process.
One important note: only the gold gets weighed. If your ring has a large gemstone, an honest buyer accounts for that. The stone may add value on its own, but its weight shouldn’t be counted as gold.
Factor 3: The Spot Price
The spot price is the current market price for one troy ounce of pure gold. It changes constantly during trading hours, just like a stock price. Financial news sites and precious metals resources publish it in real time, so you can check it yourself before you sell.
Because the spot price moves daily, the same gold chain might be worth more this week than it was last month. When gold prices climb, it’s often a smart time to sell scrap gold or broken jewelry you no longer wear.
Keep in mind that no buyer pays 100% of spot price. Pawn shops, jewelers, and refiners all pay a percentage below spot to cover refining costs and operate their business. The difference between an honest buyer and a bad one is how fair that percentage is, and whether they explain it openly.
How the Math Works: A Simple Example
Let’s put it all together. Say you have a 14k gold bracelet that weighs 20 grams.
- Find the pure gold content. 14k gold is 58.3% pure. So 20 grams x 0.583 = 11.66 grams of pure gold.
- Convert to troy ounces. 11.66 grams ÷ 31.1 = 0.375 troy ounces.
- Multiply by the spot price. Whatever gold is trading at that day, multiply it by 0.375. That’s your bracelet’s melt value.
- Apply the buyer’s rate. The offer you receive will be a percentage of that melt value.
That’s the entire calculation. There’s no mystery to it, and any trustworthy gold buyer will walk you through these numbers on request.
How Pawn Shops Test Gold
Hallmark stamps are helpful, but they can be worn down, missing, or occasionally faked. That’s why professional gold buyers verify purity with testing. Here are the most common methods:
Acid Testing
The classic approach. The tester makes a tiny scratch on a testing stone, then applies acid solutions formulated for different karat levels. The way the mark reacts reveals the purity. It’s quick, reliable, and causes no meaningful damage to your item.
Electronic Gold Testers
These handheld devices measure electrical conductivity to estimate karat. They’re fast and completely non-destructive, which makes them useful for a first pass.
X-Ray Fluorescence (XRF)
XRF machines read the exact metal composition of an item without touching or damaging it. This is the most precise common method, and many established buyers use it for high-value pieces.
Magnet Testing
Gold is not magnetic. If a “gold” chain snaps to a magnet, it’s either gold-plated over a base metal or not gold at all. This is a quick screening test, not a final answer, since some fakes use non-magnetic metals too.
You can try the magnet test at home, but leave the final verdict to professional equipment. A shop that tests your gold in front of you and explains the results is a shop you can trust.
When Gold Is Worth More Than Its Melt Value
Melt value is the floor, not always the ceiling. Some gold items carry additional value that a knowledgeable buyer will recognize:
- Collectible gold coins. Rare dates, low mintages, and coins in excellent condition can sell well above their gold content. American Gold Eagles, pre-1933 U.S. gold coins, and certain foreign coins fall into this category. The U.S. Mint publishes specifications for American coins if you want to research what you have.
- Designer and brand-name jewelry. Pieces from recognized luxury brands often sell as jewelry, not scrap, which means a higher offer.
- Estate and antique jewelry. Craftsmanship, age, and style can add real value. Victorian, Art Deco, and mid-century pieces are in demand.
- Gold watches. A quality gold watch may be worth far more intact than melted, especially from respected watchmakers.
- Diamonds and gemstones. Quality stones are evaluated separately and added to the offer.
This is where experience matters. A buyer who only knows scrap value might offer melt price for a coin worth three times that. Florida Cash evaluates jewelry, coins, estate pieces, diamonds, and watches every day, so nothing valuable gets treated as scrap.
Tips to Get the Most for Your Gold
A little preparation goes a long way. Before you sell gold in St. Augustine or anywhere else, keep these tips in mind:
- Know your karats and weights ahead of time. A basic kitchen scale gives you a rough idea. Check hallmarks with a magnifying glass.
- Check the spot price the day you sell. It takes ten seconds online and helps you judge whether an offer is fair.
- Separate items by karat. Don’t let a buyer weigh 10k and 18k pieces together and pay the lower rate for everything.
- Don’t clean or polish antique pieces. Aggressive cleaning can reduce the value of estate jewelry.
- Get more than one offer if you’re unsure. An honest buyer won’t pressure you to decide on the spot.
- Ask questions. How was the purity tested? What weight was used? What percentage of spot are you offering? Straightforward answers signal a straightforward business.
The Federal Trade Commission also offers consumer guidance on selling gold and jewelry, including advice on finding reputable buyers. It’s worth a read before selling high-value items.
Selling Gold vs. Pawning Gold: You Have Options
Here’s something many people don’t realize: you don’t have to sell your gold to get cash for it.
With a pawn loan, your gold serves as collateral. You receive cash on the spot, and when you repay the loan plus the fee, your item comes right back to you. It’s a practical option if you need short-term cash but want to keep grandma’s ring in the family.
| Selling Gold | Pawning Gold | |
| You get cash immediately | Yes | Yes |
| You keep ownership | No | Yes, once repaid |
| Credit check required | No | No |
| Best for | Items you no longer want | Items you want back |
Florida pawn transactions are regulated under the Florida Pawnbroking Act, which sets clear rules on terms, fees, and your rights as a customer. A licensed pawn shop will explain every term before you sign anything.
Frequently Asked Questions
How do pawn shops calculate gold value?
Pawn shops multiply the gold’s purity percentage by its weight, then multiply that by the current spot price to find the melt value. The offer is a percentage of that melt value. Collectible coins, designer jewelry, and estate pieces may receive higher offers based on their full market value.
Do pawn shops pay spot price for gold?
No buyer pays full spot price, because refining and reselling gold has costs. Reputable pawn shops pay a fair percentage below spot and will explain their offer. Comparing the offer against the day’s spot price is the easiest way to judge fairness.
What karat gold do pawn shops buy?
Most pawn shops, including Florida Cash, buy all karats: 10k, 14k, 18k, 22k, and 24k. They also buy scrap gold, broken jewelry, dental gold, gold coins, and gold watches.
Is broken gold jewelry worth anything?
Yes. Broken chains, single earrings, and damaged rings still contain gold, and gold value doesn’t depend on condition. A broken 14k chain is worth the same per gram as an intact one when sold for its metal content.
How can I check gold prices before selling?
The spot price of gold is published in real time on financial news sites and precious metals market resources. Check it the same day you plan to sell, since prices move daily.
Do I need an ID to sell gold in Florida?
Yes. Florida law requires pawn shops and secondhand dealers to record a valid government-issued photo ID for every transaction. This protects sellers and helps prevent the sale of stolen goods.
Know Your Gold’s Value Before You Sell
Gold value isn’t a mystery. It comes down to karat, weight, and the day’s spot price, plus any collectible or designer value your item carries. Once you understand the formula, you can spot a fair offer from across the room.
The best way to find out what your gold is worth is to have it evaluated by an experienced buyer who tests and weighs everything in front of you.
Stop by Florida Cash in St. Augustine for a free, no-obligation gold evaluation. We’ve served St. Johns County, Anastasia Island, Palm Coast, and the surrounding Northeast Florida communities since 1992, and we’ll walk you through every step of the process. Whether you’re selling scrap gold, exploring a pawn loan, or just curious what that old chain is worth, we’re happy to give you an honest answer. You can also browse our selection of quality pre-owned jewelry, coins, and bullion while you’re here.
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