How Do Pawn Shops Test Gold & Diamond Jewelry?

One of the most common items that pawn shops buy and accept as collateral for loans is jewelry. Because the price that pawn shops offer for loans and buys on jewelry are based strictly on the scrap value of the precious metal (gold, silver, platinum) the piece is made plus a percentage of the wholesale value of any diamonds, it’s absolutely crucial for pawn shops to be able to reliably test and authenticate jewelry. Below, we’ll discuss a few different methods for how pawn shops test and authenticate jewelry before making buy and loan offers! To learn more about the pawn loan process or to get some quick and easy cash using a piece of jewelry you own as collateral, please contact Empire Loan today or visit one of our eight locations in New England!

Acid Tests

One of the most common methods for identifying and authenticating gold jewelry is by performing an acid test. Acid tests are performed by rubbing the gold jewelry on a touchstone or ceramic plate to create a scratch. Next, a drop of nitric acid solution will be added on top of the scratch. By observing the reaction between the nitric acid solution and gold scratch, pawnbrokers will be able to identify and authenticate the gold’s purity.

Electronic Gold Testers

Electronic gold testers are another common way to identify and authenticate gold jewelry. These electronic testers work by applying an electrical charge to the jewelry in question. The tester will then measure the resistance of the gold, which will change depending on the assay or karat. Finally, the tester will compare this resistance level to known resistance levels for different gold karats and digitally display the karat of the tested piece of jewelry. Another type of equipment used is an XRF machine which X-Rays the piece of jewelry to determine the metal content of the piece. These machines can be expensive so only more prominent pawn shops like Empire Loan may have them available.

Diamond Testers

There are two different types of electronic diamond testers: thermal conductivity testers and electrical conductivity testers. Thermal conductivity diamond testers work by applying heat to the stone in question. Because diamonds have high thermal conductivity, the heat that was applied will disperse and dissipate quickly. The thermal conductivity tester will measure how the heat and the stone interact to determine whether or not the diamond is authentic.

Electrical conductivity diamond testers work in a similar fashion to electronic gold testers, by applying an electrical current to the stone in question. Diamonds do not conduct electricity well, so if the tester measures high resistance to the electrical current, the tester will be able to tell whether or not the stone is an authentic diamond.

Other Authentication Methods

In addition to the testing and authentication methods mentioned above, pawn shops and experienced pawn brokers may use several other methods to determine the quality and authenticity of a piece of jewelry you bring in to sell or use as collateral for a loan. Some additional methods include X-ray analysis, visual inspections, water displacement density testing, and more.