Case Study: Pawn Shop vs Jewellery Store vs Gold Buyer – Where to Get Top Cash for Gold

Gold prices in Australia reached record highs recently, rising above A$5,300 per ounce in late 2025. This surge has driven many Australians to consider selling unwanted jewellery, coins, and bullion for cash.

Whether you’re decluttering old chains or need extra cash, where you sell your gold makes a big difference in payout, process, and satisfaction. In this case study, we compare three common selling options — pawn shops, jewellery stores, and specialist gold buyers — to help you get the most cash.

Introduction: Why Where You Sell Gold Changes Your Payout

The Big Gold Question: Max Cash or Quick Cash?

Imagine holding a piece of gold jewellery weighing 10 grams. At today’s market price, that could be worth hundreds or even more in cash. But the offer you get depends on the buyer’s business model — not just the gold’s weight.

Why Australian Sellers Are Active Now

Record prices have Australians selling more gold than usual, from old rings to bullion coins. High prices make it tempting to sell now rather than hold indefinitely.

How This Case Study Is Structured

This guide compares real selling approaches in Australia, including published gold-for-cash rates, industry practices, and expert tips.

Understanding How Each Buyer Type Works in Australia

Pawn Shops: Loans First, Sell Later

Pawn shops traditionally focus on short-term loans using your gold as collateral. If you choose to sell outright, they still price items below true market value to cover their risk and resale needs.

Jewellery Stores: Retail Focus, Not Scrap Buyers

Most jewellery stores in Australia are retail outlets focused on selling crafted jewellery — not specialising in gold metal purchases at melt value.

Gold Buyers: Specialists in Melt-Value Cash Offers

Specialist gold buyers assess weight and purity using modern testing and pay based on daily market values. Their business model is to buy gold metal and resell to refineries, often resulting in higher payouts.

Pawn Shop Breakdown: Fast But Often Low Offers

How Pawn Shops Operate in Australia

Pawn shops will typically evaluate gold purity and weight before offering a cash price or loan value. However, because they price conservatively to manage resale risk, their cash offers can be significantly lower than true melt value.

Pawn Shop Offers vs Real Value

Industry experts note pawn shops often pay well under specialist gold buyers because they must protect against loan defaults and resale uncertainty.

Best Cases to Use Pawn Shops

Pawn shops make sense if you need cash immediately and plan to retrieve the item with a loan. For pure selling, they are usually not the best choice for maximizing cash.

Jewellery Store Insights: Trusted But Not Designed for Scrap Sales

What Jewellery Stores Value

Australian jewellery stores specialize in craft, design, and retail sales. When they buy gold, the assessment may factor in gemstones or brand value. But for old or broken jewellery, their offers are often lower than specialist gold buyers because they aren’t focused on gold melt price.

Why Offers Can Be Lower

Stores may price based on retail resale potential rather than true metal value, especially for scrap gold.

When Jewellery Stores Can Still Be Useful

If your item has valuable stones or designer appeal, jewellery stores sometimes offer more than metal value alone. But for pure metal proceeds, this is rarely the highest payout.

Gold Buyer Advantages: Higher Payouts in Many Cases

Specialist Gold Buyer Rates (Australia)

Australia’s gold buyers publish per-gram prices based on purity and live market rates. In many cities, buyers offer strong rates for 24ct, 22ct, 18ct, and even 9ct gold based on the day’s spot price.

These rates are typically tied to daily gold prices and reflect a focus on gold melt value.

Online & Mail-In Services

Some services allow selling by mail with live market pricing and secure shipping — with payment once received and evaluated.

Advantages Over Pawn and Retail

Gold buyers usually pay higher percentages of melt value because their business is buying metal, not selling loans or retail goods. This often leads to higher cash returns than pawn shops or jewellery stores.

Head-to-Head Data: Who Pays More?

Here’s a general comparison of how different sellers can vary:

Jewellery store payout data is less transparent and can vary widely.

Key Factors That Influence Cash You Get

Gold Purity & Weight

Payout is directly tied to karat and gram weight — higher purity means higher price.

Live Market Pricing

Gold buyers adjust their rates daily according to live market prices.

Testing Accuracy

Accurate testing using professional tools ensures you are paid fairly based on actual purity.

Expert Tips to Max Out Your Cash for Gold

• Get multiple quotes rather than selling to the first buyer.
  
  

• Avoid pawn shops for pure selling — they are best for loans, not maximizing price.

  
  

• Know your gold’s purity before you walk in.

  
  

• Check for transparent pricing and no hidden fees.

Conclusion: Best Choice for Most Sellers in Australia

For most Australians looking to get the most cash for unwanted gold, specialist gold buyer in Australia often pay more than pawn shops or jewellery stores, thanks to their focus on melt value and transparent pricing.