There are times in our lives when we all have needed immediate cash, for unexpected expenses, medical bills,etc. And sometimes a person may need the money quicker than they can get it through traditional means or they may not qualify for a traditional loan or advance . In these cases working with a pawnbroker can be a very good option. That’s because they can loan money against the value of collateral, like jewelry quickly and without having to qualify financially.
Jewelry is one of the items that pawn shops take in regularly for exchange for collateral loans. They loan on a percentage of the value of the jewelry you are wanting to put up for collateral. The transactions tend to be quick and in most cases you can get the cash you need the same day.
But first, let’s take a look at what the advantages are when working with a Pawn Shop.
The Advantages of Working With a Pawn Shop
One of these is instant payment. Pawn shops always pay outright, so you’ll receive the money once you agree on the terms of the collateral loan. They then give you the money you need in exchange for holding your jewelry in their shop.
You won’t have to wait for any lengthy administration process or bank transfers. Instead, you’ll get paid instantly and without delays. This is a huge benefit when you need instant cash. Also, it’s ideal if you don’t want to wait for days for the payment to process.
Another advantage is convenience. Considering that there are pawn shops near your home,working with them is extremely simple. Since you’re working locally, you won’t have to ship items to a different states or cities.
Selling Jewelry to a PawnBroker – The Process
Now that you’re set, make sure to follow these steps on how to use jewelry to get a loan from a pawnbroker. Doing so will help you receive a fair price in exchange for a loan.
Know Your Jewelry’s Value and Demand
The first thing you should do is get a feel for the value of your jewelry. Receipts and appraisals can be very helpful especially if they are recent. Many PawnBrokers are experts in the certain types of merchandise they handle, Jewelry is something that some PawnBrokers tend to know a lot about, in fact many have the same training and credentials as professional jewelers..
Gold and Silver
The value of both gold and silver fluctuate every day. If you’re planning to talk with a PawnBroker about gold or silver jewelry it is good to have a basic understanding of how jewelry and bulk gold and silver are valued.
Appraisals
Recent appraisals on jewelry can make life much simpler in the event you need to use your jewelry for a loan or if it is lost or stolen. Most insurance companies require you to at least have your more expensive jewelry (pieces valued at over $5000) appraised every 3 to 5 years. Having these current appraisals can also help the evaluation process for the PawnBroker on determining what they will offer you.
Get the Offer then Agree with the Terms
The pawnbroker will then give you an offer based on the karat and bullion-value of your jewelry. Remember, the PawnBroker is factoring into the equation the handling and reselling costs they will have to absorb if you do not pay back your loan.
If you accept the offer, it’s usual to get the money the same day you sold your piece. Like most successful businesses PawnBrokers rely on repeat business. They treat people fairly and with respect because they want to have you as a long term customer.
Many people don’t realize that 80% of all collateral loans given by PawnBrokers are repaid by the customer. So most of the merchandise they receive as collateral is returned to the borrower without it ever being displayed in the store.
The Fineness of Gold
The fineness of gold is another way for a pawnshop to determine the value of a piece of jewelry. It’s never made from 100% pure gold since that will be too soft and easy to scratch. Usually, jewelry consists of gold combined with other metals for added durability.
In most cases, a piece of jewelry has a higher value when its gold has a higher purity level.
Before you give your jewelry to a pawnbroker, be sure that you’re aware of the piece’s fineness. Doing this will also help you have a better understanding of its market value.
Gold’s Current Price and Ease of Reselling
Most pawn shops use the current price of gold to set a value for a jewelry. However, some will consider the ease of reselling the piece after buying it from you. Some types of jewelry are easier to resell than others.
However, this can vary from one pawn shop to another. For some shops, the reselling value of jewelry may differ from those bought based on the scrap or bullion value.
What To Watch Out For
Pawn shops are highly regulated businesses and are governed depending on the state. With that said, not all Pawnshops are knowledgeable on all types of items. If you are looking for a loan selecting a PawnBroker who specializes in the type of merchandise you are using as collateral is very important.
Like any financial institution PawnBrokers have fees that they add into each transaction The PawnBroker should be transparent by having all fees clearly stated, if you don’t understand something then now is the time to ask. Transparency is not only good for you but also the PawnBroker.
PawnBrokers work closely with police departments to determine if items may have been stolen. Many report daily the names of people they work with along with the items they brought in to the various legal entities
Choosing a pawn shop can be easier by searching online and reading reviews. This way, you’ll learn about other customers’ experiences, the type of merchandise they loan on. This will help you decide which shops you’ll want to consider.
Additional Tips When Selling Jewelry to a Pawn Broker
Aside from knowing the process of how to sell jewelry to a pawnbroker, it’s good to follow these additional tips:
Clean Your Jewelry
Would you try and sell a car without cleaning it first? Definitely not, and that also applies when you sell jewelry. Clean the items and make them look presentable before having them checked by the pawnbroker.
Presentation Matters When Using Jewelry To Get A Loan
As mentioned earlier, it’s best to make the jewelry presentable before bringing it into a pawnbroker. Never leave your jewelry in a messy tangle. Organizing your pieces can help in determining a fair value for the Jewelry you have brought in.
By presenting your jewelry properly, you can avoid a negative first impression. It’s ideal if you have the original packaging of the piece. If not, jewelers also have surplus cases, which you can purchase before selling your jewelry.
Aside from presentation, you can help you keep your jewelry clean and undamaged.
Look clean and professional
Pawn shops are businesses built for people who need money. Dress well when visiting the pawnshop and act casual. .
Negotiations
We have all seen the reality TV shows like Pawn Stars where sometimes there is intense negotiations for items that are brought in. This makes for interesting watching but really doesn’t happen much, if ever, in most Pawn Shops.
Pawn Brokers are business people and most are not speculators. They tend to follow industry guidelines on determining the value of items and they will give you a loan value accordingly. You can always negotiate and try to get a better price but you are most likely not going to see the wild swings in values as you see on TV.
Do Business with a Licensed and Reputable Pawn Shop
Before selling jewelry to a pawnbroker, see to it that you’re dealing with a legitimate shop. Most states require Pawn Shops to have a license before operating. The pawn broker should also provide identification and detailed receipts for documenting any sale or loan..
Recent Comments