This Summer, Make Money with Your Unwanted Jewelry

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Summer is here, and for many of us, we take this time of year to declutter and clean out our homes. If you’ve been thinking about selling or pawning your jewelry, spring is as good a time as any. Before you do, here’s some expert advice on getting top dollar at a pawn shop.

Pawn shops have surged in popularity in recent years, in part due to the struggling economy, the rise in the price of gold, reality TV shows such as “Pawn Stars” and “Hardcore Pawn,” and also the evolution of pawn stores into high-end collateral lenders. Consequently, taking out a pawn loan has become more mainstream — a legitimate and acceptable financial option for many people in need of some quick cash.

 

Why people pawn

There are many types of people who take pawn loans, but the reasons are generally the same: They need money, but don’t want to permanently part with the item they are putting up as collateral for the loan, due to sentimental value or other reason. Whatever the reason—and pawn shops usually don’t ask — pawn loans have become a mainstream way to get cash, without having to sell a valued item.

According to the National Pawnbrokers Association (NPA), 70 percent of surveyed pawnbrokers reported that the quantity and dollar amount of pawn loans have increased since 2010. The NPA also reports that on a national average, a typical pawn loan is less than $150 for 30 days.

While pawn shops differ in estimate and loan prices, pawn loans generally work the same way between shops. Here’s an overview of how a pawn loan works, and what to know before you agree to a pawn loan.

  • A customer brings in a valuable piece of jewelry.
  • The pawnbroker appraises it and gives customer a fixed-term loan price for the item, plus interest, and a maturity date of the loan, usually 30 days. There is no credit check, as the loan is secured by the collateral.
  • If the customer agrees to the loan price and conditions of the loan, he/she receives the agreed upon loan amount, and leaves the item with the pawnbroker as collateral to guarantee the loan.
  • The pawnbroker will give the customer a pawn ticket with their name and address, a description of the pawned item, the loan amount and the maturity date. The local police will also get a copy of the receipt.
  • When the loan is paid, including interest, the customer will receive the pawned item back. If a loan is not repaid, and no monthly interest payment is made, the pawnbroker will keep the item and cancel the debt.
  • Some pawn shops will allow the customer to extend the loan indefinitely if they pay the interest on the loan.

Do your homework first

Like any business, the reputation of pawn shops differs from shop to shop. Some are more professional and offer better loan prices than others. However, the highest loan price doesn’t necessarily make the best deal. Do your research before buying, selling or entering into any agreement with a pawn shop. Check out this link for specific details about Loans from Garden City Pawn

It’s a good sign when a shop is a member of the National Pawnbrokers Association, and its appraisers are educated by the Gemological Institute of America (GIA), the world’s foremost authority on diamonds, colored stones, and pearls.

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Do some research ahead of time, ask plenty of questions and make sure you agree to the appraisal estimate, loan price and terms and conditions of the loan before agreeing to the loan. Finally, trust your instinct. If you like the pawnbroker and feel like you’re getting a fair deal, you’re probably right.

 

 

 

 

 

As Always Garden City Exchange will make the Highest and Best Cash offer we possibly can on each and every item that comes into our store. Don’t Hesitate to call or Text us anytime if you have something to sell or Pawn!
 Call:  734-525-0777   |   Text: 313-215-6986

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