Pawning jewelry usually results in a loss because the pawnshop will lower the price of the jewelry and the borrowing interest rate is also high. But when you need money urgently, pawning your jewelry may be the only way out. Spend more time valuing the jewelry, shopping around to find the most suitable pawn shop, and repay the loan promptly after an emergency. As long as you can do the above points, you can successfully obtain the loan and redeem the jewelry in time.
Select Jewelry to Pawn
Determine loan amount. Pawn shops make money from pawning, and the amount they lend is usually 60% to 70% of the actual price of the pawned items. Therefore, it is best not to pawn large amounts of jewelry unless necessary. This is particularly important when the pawnbroker has poor repayment ability.
- Be aware of the loan amount to minimize the losses caused by pawning jewelry.
Choose the jewelry you want to pawn. Try to choose jewelry to pawn that has no special meaning to you. Pawning heirloom jewelry may make you regret it, but pawning the engagement ring your ex gave you won’t be too much of a psychological burden.
Appraisal of jewelry. Pawn shops typically only accept high-purity precious metals, such as gold, silver, and diamonds, but not gold-plated jewelry or costume jewelry. Ask a jeweler or appraiser to give your jewelry a free estimate to determine its purity and value.
- You can go online and search for an appraiser or jeweler near you.
- Pawn shops generally do not issue loans based on the actual value of jewelry, but knowing the actual value of jewelry can give you an idea when pawning. The pawn price is generally 60 to 70 percent of the actual value.
Keep some jewelry for emergencies. Try to avoid pawning all your jewelry at once, and keep one or two pieces of jewelry with higher value in case you cannot repay them in time. This gives you more time to redeem the jewelry by pawning it again.
Find the Right Pawn Shop
Determine the repayment period. When a pawn shop issues a loan, it will limit the repayment period. If the pawnee fails to repay the loan within the due date, the pawn shop has the right to detain the pawned items. Determine the repayment period in advance so that the jewelry can be redeemed in a timely manner.
- Leave some room for repayment. When calculating the repayment period, add a few extra weeks to account for unexpected events that prevent you from getting the money you owe in time.
Research local and online pawn shops. Pawn shops have different operating methods. Some will issue larger loans, some will provide more cost-effective repayment interest rates, and some will extend the repayment period. Search online in advance and choose the most suitable pawn shop based on your situation.
- Online pawn shops may offer larger loan amounts or longer repayment terms, but it can be difficult to negotiate a price, especially when pawning precious jewelry.
Visit several local pawn shops. There is competition among pawn shops. Visit several pawn shops to choose the most cost-effective pawn plan.
Be cautious. A pawn shop may try to exchange your jewelry for a bargain while you’re not looking, so be sure to watch your jewelry carefully. If the jewelry has not yet been appraised, bring your scale to the pawn shop and do not trust the pawn shop’s scale.
- Don’t accept a low price or estimate from a pawn shop.
Bargain
Negotiate prices for pawn items. Choose the right pawn shop and negotiate the price with them boldly. If the pawn shop feels that your proposal is not suitable, it will naturally reject or raise objections, so you have nothing to lose by negotiating the price.
- When negotiating, let the pawn shop come up with the price first.
- When negotiating, in addition to asking for more borrowing, you can also discuss issues such as borrowing interest rates and repayment terms.
- If the pawn shop cannot meet your requirements, consider changing to another pawn shop.
Sign the pawn contract. Pawn shops that cannot provide pawn contracts or paperwork are not trustworthy. When signing a contract, indicate the pawn terms, loan interest rate and repayment period, and include a brief introduction to the jewelry.
- Place the jewelry and the contract together in the pawn shop, and then take a photo to retain evidence in case of any disputes that may arise in the future.
Make timely repayments. Only timely repayment can redeem the jewelry. Pawn shops are unlikely to sell all pawned items as-is; they often melt down the jewelry and sell it at market value. As long as the redemption date has passed, the pawn shop has the right to melt down your pawned jewelry.
- To sum up, the best way to redeem jewelry is to repay it promptly according to the repayment date stipulated in the contract.