The pawnbroker will then make you an offer based on the current market price of gold and the karat of your gold. If you accept the offer, the pawnbroker will give you cash on the spot! It's that easy.

First, you'll get less money for your gold than if you sell it outright. Pawn shops offer lower prices because they need to make a profit from reselling your gold if you default on the loan. Second, you'll have to pay interest and fees on top of the loan amount, which can add up quickly.

Pawn shops use various methods to test gold before pawning. One of the most widely used methods is the acid test, which involves applying nitric acid to the gold item to determine its purity. The magnet test is another simple method used to test if gold is real or not.