Pawn shops are a good option to have when you want fast cash and have valuable goods. There are a number of things that pawn shops will accept and a lot of them may not be what you would think. If you have valuable jewelry however, this is a definite win as pawn shops will never turn down a quality chance.
However, it is important that you choose somewhere reliable and trustworthy before you hand over your precious goods. You need to ensure you go somewhere which has a solid reputation as once you hand your item over, they will value it and give you the pre-contract credit information form.
If you are searching for reliable pawn shops, it’s well worth checking out who is listed on the National Pawnbrokers Association website. This way you can gain official insight into whether the one you wish to go to is legitimate.
Factors That Affect The Rate When Pawning Jewelry
You will be quoted an interest rate and this will most likely be much higher than going to your bank but it will be less than a lender. You may also be quoted a monthly or daily rate which may impact the price. Different pawnbrokers will have different rates, so it’s important to shop around so you can see which are most competitive. After this, you can pay back the loan in one lump sum instead of installments.
There are some factors that may be beyond your control which impact the rate you get when pawning jewelry.
The open market impacts rates – Depending on the material, precious stones and value of the jewelry you are pawning, you can expect the open market to have an impact. Things such as supply and demand will determine whether the pawnbroker can sell it at a good price that is worth their while. For example, if you have platinum jewelry, the market conditions keep on rising and falling so are a bit more unstable. It’s good to research into the current marketplace so you can take your jewelry at the right time to get the most value for money. There are articles available online that explain how pawnbrokers work.
How pure the material/metal is – The purity of the jewelry will also impact the rate. You should bring with you any certificates or material which proves the percentage of the pure metal in the pieces you are pawning.
How much it weighs – The jewelry will be measured on a scale by the broker and the weight of the item will determine the rate. Normally the heavier it is the higher the price and the more valuable it is.
Ultimately, these are the main factors impacting the price but the pawn broker themselves will use their discretion when valuing the items and deciding the prices. It is moreover your responsibility to shop around and go somewhere reliable to ensure you are getting the best price.