What is the difference between a pawn shop and a gold buyer?

A pawn shop offers secured loans and also buys and sells a broad range of merchandise, such as jewelry, tools, electronics, and instruments. A gold buyer generally focuses on purchasing precious metals, coins, and jewelry, often for their metal value, and usually does not make loans.

Because gold buyers specialize, they may offer competitive prices on scrap gold and silver, while pawn shops offer the flexibility of a loan if you want your item back. Some businesses do both, along with consignment or jewelry retail.

Whichever you choose, ask how the offer is calculated, watch the testing and weighing, and get more than one quote for significant amounts. Both kinds of businesses may be subject to state and local licensing and reporting rules, so choose one that is properly licensed and transparent about its process.