Pawn shops typically pay significantly below the actual spot market value of gold—usually offering between 50% to 70% of the melt value—to account for processing fees, market fluctuations, and profit margins. Because 10K gold consists of 41.6% pure gold alloy combined with other metals, a pawn shop calculates payout based on the total weight (in grams pennyweights or troy ounces) of the pure gold content multiplied by current daily market spot prices, meaning payouts vary constantly based on live gold market shifts.