Gold-backed loans: how much is a gram of gold valued at?
Pawnshops value gold by the world market price (per ounce) and fineness, then deduct a 20–40% "safety margin": for 585 fineness the per-gram price is about 55–70% of the world price, higher for 750. Stones, workmanship and brand are usually not counted, only the pure gold weight. Because the figure changes daily, get quotes from several pawnshops on the same day.
The answer to "how much per gram" depends on three numbers: the world price, the fineness and the discount the pawnshop applies. The first is the same for everyone and public; the second is stamped on the item; the third differs by 15–20% between pawnshops, and that is where comparison saves money. Bank pawn services usually value gold higher. Below we show a worked example and typical valuation tricks.
What you need
- 1 Gold item and ID card; a hallmark (fineness stamp) is an advantage
- 2 Valuation: weight (to 0.01 g), fineness test (acid/spectrometer), calculation by world price
- 3 Pawn ticket: weight, fineness, appraised value, loan amount and rate must be stated
- 4 For items with stones, clarify in advance how the stone weight is deducted
Bank offers that fit this case
| Bank | Loan | Rate | Term | |
|---|---|---|---|---|
Rabitəbank
|
Rabitə Lombard | 17% | 36 mo. | Details |
Yelo Bank
|
Yelo Bank Lombard | 17.6% | 48 mo. | Details |
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Merkuri BOKT
|
Lombard Krediti | 15%-dən başlayaraq% | 36 ayadək mo. | Details |
City Finance BOKT
|
Lombard Krediti | 24%-dən başlayaraq% | 36 ayadək mo. | Details |
Bank Respublika
|
Lombard krediti | 18% | 48 mo. | Details |
Bank Avrasiya
|
Qızıl təminatlı kredit | 19%-dən başlayaraq% | 48 ayadək mo. | Details |
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Bank BTB
|
Lombard krediti | 21% | 48 mo. | Details |
İdeal Kredit
|
Qızıl Girovlu Kredit | 24%-dən başlayaraq% | 36 ayadək mo. | Details |
Sample calculation
Estimated figures for 2 000 AZN over 3 months at ~15% effective rate. The exact number depends on the bank.
How to apply?
What to watch for?
- ✓ Before applying, convert the world gold price to AZN per gram and keep it handy; you will see the pawnshop's discount immediately.
- ✓ When the item is weighed, make sure the scale is certified and the weight is shown in front of you.
- ✓ Pawn several items separately: you can redeem the one you need first.
- ✓ Add extra charges like "valuation fee" and "storage fee" to the interest when comparing.
Frequently asked questions
What is the price difference between 585 and 750 fineness?
750 fineness contains 75% pure gold and 585 contains 58.5%, so the per-gram price is about 28% higher. Pawnshops always calculate by pure gold weight.
Can the pawnshop sell my gold while it is pledged?
Only after the term expires without payment and after the waiting period stated in the contract. During the term the item remains your property and must be stored.
What is the maximum gold-backed loan?
There is no cap; it is determined by the item's value. For large amounts (over 10,000 AZN) a bank's pawn service is safer and cheaper.
Related questions
Useful links
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