A recent news article discussed how New Yorkers are heading to pawnshops for cash to help pay bills. That trend is not just in the United States. The BBC recently reported that pawnbroking loans are soaring and that over the last year there has been a 25% increase in the number of new loans from pawnbrokers, according to figures from the Financial Conduct Authority.
Jewelry tends to be a common item that is pawned. With Forbes noting the value of gold around $,1900 an ounce right now, it is crucial that pawnbrokers know exactly how much gold – and especially confirm that it’s not counterfeit — is in the jewelry that they are buying and selling.
When it comes to assessing the value of gold, pawnbrokers play a crucial role in determining its authenticity. With years of expertise and knowledge, these professionals employ various methods to ensure the genuineness of gold and other precious metal items. This blog article aims to shed light on the meticulous process undertaken by pawnbrokers to verify if a piece of jewelry is indeed made of real gold.
Visual Inspection
The initial step in assessing the authenticity of gold jewelry involves a comprehensive visual inspection. Pawnbrokers closely examine the piece, looking for distinct hallmarks or stamps that indicate the gold’s purity. These hallmarks usually include a number followed by “k” or “kt” (karats), such as 18k or 24k, signifying the percentage of gold content in the piece. (Read Does Underkarating Matter.)
Magnet Test
One common method used by pawnbrokers is the magnet test. Gold is not magnetic, so if a piece of jewelry is attracted to a magnet, it is highly likely that it is not made of genuine gold. However, it is important to note that this test alone is not conclusive, as other metals used in jewelry making might also be non-magnetic.
Acid Testing
Acid testing is a widely recognized method employed by pawnbrokers to verify the purity of gold jewelry. A small scratch is made on a discrete part of the piece, and a drop of acid solution is applied to the mark. Different acid solutions are used, each corresponding to a specific gold purity level. If the jewelry reacts differently or dissolves in the acid, it indicates that it may not be genuine gold.
There are several reasons that acid testing should not be done, including inaccuracy, use of dangerous chemicals, and damage to the gold piece. Here’s an infographic describing 8 Reasons jewelers should NOT use acid to test jewelry.
Density Test
Pawnbrokers also utilize a density test to determine the authenticity of gold jewelry. This method relies on the principle that gold has a higher density compared to most other metals. A precise measurement of the piece’s weight is taken, followed by a measurement of its volume using specialized equipment. By dividing the weight by the volume, the density is calculated. If the density falls within the expected range for gold, it provides further evidence of authenticity.
X-ray Fluorescence (XRF) Testing
In more advanced pawnbroking establishments, X-ray Fluorescence (XRF) testing may be employed to analyze the composition of gold jewelry accurately. This non-destructive technique uses X-rays to determine the elemental composition of the piece, including the percentage of gold content. XRF testing provides highly accurate results and is considered one of the most reliable methods for verifying gold jewelry authenticity.
WithXRF precious metals analyzersthe shop workers can measure the content of all gold and precious metals, as well as determine the presence and concentration of other trace, alloying elements, and dangerous heavy elements, which could impact health and the valuation of the pieces. Most importantly, it is a non-destructive technology, so the piece does not lose any value during testing. This is an especially important factor if you’re dealing with high value items.
Conclusion
Pawnbrokers employ a combination of visual inspection, acid testing, density testing, and sometimes even X-ray Fluorescence (XRF) testing to ensure the authenticity of gold jewelry. These meticulous procedures allow them to provide accurate valuations and establish trust with customers. By understanding the process undertaken by pawnbrokers, customers can have confidence in the expertise and professionalism of these professionals when it comes to assessing the value of their gold jewelry.
Additional Resources
- Webinar: Not All that Glitters is Gold.Learn how to improve the bottom line of your precious metal business by doing the correct chemical analysis.
- Featured XRF analyzers, videos, and resources for precious metals testing
FAQs
Acid testing is a widely recognized method employed by pawnbrokers to verify the purity of gold jewelry. A small scratch is made on a discrete part of the piece, and a drop of acid solution is applied to the mark. Different acid solutions are used, each corresponding to a specific gold purity level.
How do you verify gold jewelry? ›
Drop Nitric Acid
Real gold does not react to nitric acid. Try the acid test if physical examination does not work. Scratch lightly on the jewelry's surface and apply a small amount of nitric acid on it using a dropper. If the surface turns green, your jewelry might be gold clad.
How do pawn shops determine the value of gold? ›
Pawn shops test gold to determine its weight and purity, which are critical in calculating its value. By assessing these factors, they can offer a fair loan amount or purchase price to customers based on the current market conditions.
How do pawn shops appraise gold? ›
An experienced appraiser visually inspects the jewelry when it enters the pawnshop. They check for indications that indicate the purity of the metal, such as stamps that say "14K" for gold or "925" for silver. In addition to this, they consider the gemstone's color, clarity, and carat weight.
Do jewelers charge to test gold? ›
A jeweler can normally do this for you for free if you don't have your own scale. You will need the weight in grams. Fill a vial with water. It's helpful if the vial has milliliter markings on the side, since that will make it easier for you to read the measurements for this test.
How is gold authenticated? ›
The Acid Test
The Gold Acid Test is the most popular and accurate home gold test. This is because it may harm or damage only fake materials. However, make sure to perform the acid test only if your item was identified as non-magnetic during the previous test.
What is the easiest way to test gold? ›
A float test using water is the easiest and safest way to tell if your gold is real at home. Start the process by taking a glass and filling it with water. Drop the gold accessory you want to test in the filled glass. If your gold piece sinks to the bottom of the glass, it is real.
How do pawn shops check if gold is real? ›
Acid testing is a widely recognized method employed by pawnbrokers to verify the purity of gold jewelry. A small scratch is made on a discrete part of the piece, and a drop of acid solution is applied to the mark. Different acid solutions are used, each corresponding to a specific gold purity level.
How much is a 14K gold necklace worth at a pawn shop? ›
As a general guideline, expect to get 55 to 75 percent of the total gold value (assuming the piece is in good shape). So, if your necklace contains about $420 worth of gold, a fair offer would be $231 to $315. Another way to calculate it is to reduce the per-gram value by 25-45 percent.
What system do pawn shops use to determine value? ›
Pawnbrokers have access to value databases that list current resale prices for common items. If an item isn't listed in these databases, they may check eBay to see what customers are paying for the item. Jewelry, antiques, and historical artifacts may require a special appraisal by an expert.
While some prefer to use an electronic gold testing kit, the most popular way is by using acids. Acid testing is done with a kit of several acids that determine the amount of karats in the gold being tested, and each acid is designated by amount of karats.
How to sell your gold jewelry without getting ripped off? ›
Conduct thorough research to identify reputable gold buyers in your area. Look for established jewelry stores or online platforms with positive reviews and a history of satisfied customers. Avoid dealing with random individuals or unverified online buyers, as they may be more likely to engage in unethical practices.
Where can I check if my jewelry is real gold? ›
With a magnifying glass, look for a purity hallmark from the manufacturer on the jewelry item. For example, if you own the purest gold, you should see hallmark “999” or “24K” engravings somewhere on the jewelry item. With older jewelry as an exception, typically, if you do not find a mark it may not be genuine gold.
How can you tell if gold is real without markings? ›
First, bring the strong magnet next to your gold piece and wait for the reaction. Gold is a non-magnetic metal and if you see no reaction, then it means it's the real gold. Otherwise, if you see the attraction, you're having fake gold. Gold-plated metals also tend to be non-reactive in this case.
What is the cost of gold testing? ›
Testing for purity
Anyone can have their hallmarked jewellery tested for purity at an A&H centre by paying a testing fee of Rs. 200 (for testing using the fire assay method as per IS 1418).
How can I check my gold jewelry at home? ›
You'll only need the piece of jewellery in question and some white vinegar. You can tell if a piece of jewellery is pure gold by placing it on a table or in your palm and pouring white vinegar straight onto the metal. If the metal of the jewellery changes colour, it is not pure gold.
What are signs of fake gold? ›
Easy Tests for Authenticating Gold Chains
Magnet Test: Gold is non-magnetic. If your chain is attracted to a magnet, it might be an imposter. Scratch Test: Real gold leaves a gold streak when scratched against a ceramic plate. If the streak is black, it's likely fake.
How can you tell if something is real gold or gold plated? ›
You can determine whether it is solid gold by looking for a hallmark or karat stamp. The stamp indicates the percentage of pure gold in the piece. In contrast, gold plated jewellery consists of a base metal with a coat of a thin layer of gold. It can be less expensive but may wear down over time.
