When you pawn or sell gold, the price you are offered tracks the international gold price, but it is not the same number you see quoted on the news. This guide explains why the price moves, how a pawn offer is built, and how to get a fair deal.
Why the gold price moves
Gold is traded globally, so its price shifts with currency moves, interest rates, and demand for safe assets. In Singapore, the local gold price follows these international moves. Prices can change through the day, though a pawnbroker's offer does not tick minute by minute.
What this means for your pawn loan
A higher gold price generally supports a higher loan or sale value, because the broker's risk on the item is lower. The loan is still based on your specific item, not the headline price, so purity and weight decide the final number.
Spot price vs what you are offered
Spot price
The quoted price for pure gold traded in large bars. It ignores your item's make, the cost of holding and insuring it, and the broker's risk.
Your offer
Based on your item's purity and weight, with a margin because the broker stores and insures the item and takes on price risk until you redeem.