If you need some cash immediately, pawning your jewelry can help. Here are some tips on how you can get the most from the pawnshop.
Getting a Loan or Selling?
Obviously, selling will rake in more money, but a pawnshop would usually prefer to just extend a loan so you will come back for more business. You can try asking the pawnshop owner to buy the jewelry instead (you would have a much higher chance if it’s diamond). This way, you can get paid more since the pawnshop does not have to keep the item in storage for a long time unlike when extending a loan.
Understand the Loan Terms
Loan interest is charged monthly; thus, it can get costly if you do not redeem the pawned jewelry on time. Interest rates vary from 3% to 6% per month, and items are held for 90 days plus a grace period of 30 days.
Check the value of your diamond jewelry online, or you can go to a few jewelry shops and have it appraised. After getting a good idea on its market value, take it to a pawnshop. Even better if you can bring the original box, certification, and/or original documentation with you – especially if it is a historical item. If you think you are not getting a good deal, haggle or negotiate.
Make Sure to Offer Only Quality Items
It is no secret that pawnshops want quality items that they can quickly sell at a good price, such as tools and jewelry.
Have a Compelling Story to Tell
A retailer wouldn’t care about your hard-luck tale when you offer to sell them something, but it just might work at a pawnshop. Pawnshops encourage repeat business, and may determine the appraisal based on the client’s specific financial and personal situation. They may price an heirloom higher than what they would usually do for similar items because of the emotional attachment of the jewelry on the client.
These are useful tips to keep in mind, and can help you get a better price for your diamond jewelry during those times when you need immediate cash to tide you over.