Whether you’re short on cash or simply want to declutter, pawning valuable items or selling gold can be a fast and effective solution. Here’s everything you need to know about how to pawn items and how to pawn things, especially if you’re looking for a trustworthy and smooth experience.
Table of Contents
How to Pawn Items: Step-by-Step
Pawning means using an item as collateral to get a short-term loan. You can reclaim your item later by repaying the loan plus any fees or interest. If you don’t repay, the pawn shop keeps and resells the item.
Step 1: Choose What to Pawn
Pawn shops typically accept:
- Gold and silver jewellery
- Watches (especially luxury brands)
- Electronics (laptops, smartphones, gaming consoles)
- Musical instruments
- Power tools
- Luxury handbags
- Collectibles or coins
Step 2: Clean and Prepare the Item
Present your item in the best possible condition:
- Clean jewellery and electronics
- Include original boxes, receipts, or certificates if you have them
- Make sure electronics are fully charged and working
Step 3: Bring ID and Go to a Pawn Shop
You must be at least 18 years old and provide government-issued photo ID (e.g., driver’s license or passport).
Step 4: Receive a Valuation
The pawnbroker will inspect your item and offer a loan amount based on its resale value, not its retail price. You can:
- Accept the loan offer
- Decline it and walk away
- Try to negotiate if you believe the item is worth more
Step 5: Accept the Loan Terms
If you accept:
- You’ll sign a loan contract outlining the terms
- You’ll leave your item as security
- You’ll receive your money (usually cash or bank transfer)
Loan terms usually last 30–90 days. Interest rates and fees vary by location and shop.
Step 6: Repay to Reclaim
Pay off the loan within the agreed time to get your item back. If you don’t repay, the pawn shop will keep and sell the item—but there’s no effect on your credit score.
How to Sell Gold to Gold Buyers
If you’d rather not take a loan and just want cash, selling your gold to a gold buyer is often a quicker option.
Step 1: Gather Your Gold
Gold buyers typically accept:
- Old, broken or unwanted gold jewellery
- Gold coins and bullion
- Gold watches and chains
- Scrap gold (even single earrings or tangled chains)
They usually buy any karat and condition, including 9K, 14K, 18K, or 24K.
Step 2: Know What You Have
If possible:
- Weigh your gold (in grams)
- Look for karat stamps (like 750 for 18K, or 585 for 14K)
- Check current gold prices online to get a rough idea of what your gold is worth
Step 3: Find a Reputable Gold Buyer
Look for:
- Licensed dealers with strong reviews
- Transparent pricing and no hidden fees
- On-the-spot payments
- Valuations done in front of you
Step 4: Get an Appraisal and Offer
The buyer will:
- Test your gold for purity (usually with acid or an electronic tester)
- Weigh it on a certified scale
- Offer you a price based on purity and weight
You can accept or decline the offer—there’s no obligation to sell.
Step 5: Accept and Get Paid
If you accept, you’ll be paid instantly—usually by cash, EFTPOS, or bank transfer. Be sure to get a receipt or proof of sale.
Tips for Getting the Best Value
For Pawning:
- Compare shops – Offers can vary significantly.
- Negotiate – Don’t be afraid to ask for a better deal.
- Read the fine print – Understand fees, interest rates, and due dates.
- Only pawn what you’re okay risking – If you can’t repay, the item is gone.
For Selling Gold:
- Separate by karat – 18K is worth more than 9K.
- Sell when prices are high – Gold prices fluctuate daily.
- Get multiple offers – Visit more than one gold buyer to compare.
- Bring ID – It’s legally required for selling gold in most regions.
Pawn or Sell: What’s Better?
| Situation | Best Option |
|---|---|
| You want to keep the item | Pawn it for a short-term loan |
| You want quick, permanent cash | Sell it to a gold buyer |
| The item has sentimental value | Pawn if you plan to get it back |
| It’s old, broken, or no longer needed | Sell to gold buyers |
Final Thoughts
Whether you’re pawning jewellery for a short-term loan or how to pawn things, understanding the process ensures you get the best outcome. In Melbourne and across Australia, there are many trusted pawn shops and gold buyers who make the experience safe, fast, and worthwhile.
With a little preparation and comparison, you can turn your valuables into real value—right when you need it most.