Why jewelers refuse to buy gold in pawnshops

Making jewelry to order is a very laborious work that requires the master not only certain knowledge, but also the ability to choose the right, high-quality metal for remelting.

And if most jewelers are more or less good with knowledge and experience, then there are difficulties in finding gold of decent quality. Of course, large network workshops can order pure 999 metal from specialized organizations. But private craftsmen, who do not have well-established connections and a large budget for the purchase of raw materials, are forced to either make orders from clients’ metal, or resort to other methods of finding good gold.

You can’t buy gold just like that, even if you are a licensed jeweler. To order a precious metal through official companies, which in most cases are state-owned enterprises, the workshop needs to obtain a number of special licenses and ensure strict control over the circulation of the precious metal, in accordance with the requirements of the law. Moreover, metal prices in such cases are much higher than the market suggests.

In this regard, jewelers are choosing an easier and more profitable way to legally buy scrap gold, and this is not a pawnshop, as one might think.

Buying gold to be melted down in a pawnshop actually has a number of its «dangerous» drawbacks, one of which is the quality of the collateral metal.

Although pawnshops check jewelry for fakes, jewelry with soldered copper plates or other metals still “slips through”. Buying even one such accessory, inside of which there will be a copper rod instead of gold, promises the master irreparable financial and image losses.

Also, not all pawn shop gold is suitable for remelting. Some products, such as jewelry from the times of the USSR, may have a composition that is difficult to re-melt. It is also difficult for jewelers to work with jewelry that has already been made from recycled materials by other craftsmen. The more often gold is alloyed, the more difficult it is to work with and the worse its malleability becomes.

The main reason for the rejection of gold from pawnshops in favor of jewelry from stores is its too high price.

On average, at the time of writing, gold in a pawnshop can be bought at a price of 3,500 rubles per gram. While a new item, it can be purchased for 3300 and below (As an example, the Petal ring from the Sunlight store).

Gold from a jewelry store is also more preferable in terms of working with it.

It is easy to forge and, thanks to a large assortment, allows you to pick up metal of any color. Working with it is predictable, and the metal itself is easily alloyed, since it has only one alloy, and not several, as is the case with jewelry re-made by craftsmen from old accessories.

May be useful:
Compared gold prices in the US and Russia. The difference is five times.

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