Pawning Jewelry vs. Selling: Is it Worth It to Pawn Jewelry?

How Pawning Jewelry Works: Step-by-Step Guide

If you find yourself in need of some extra cash fast, pawning jewelry might be one of the options on the table. But, pawning jewelry comes with many risks, as well as hidden costs, that, if overlooked, can cost you dearly.

But, if you are considering pawning as an option, here is what you can expect:

• Jewelry Appraisal: When you bring your jewelry to a pawnshop, a pawnbroker will appraise the value of your jewelry.

• Loan Offer: After determining the value of your jewelry, they will likely make an offer that is a mere fraction of your jewelry’s actual worth.
• Loan Terms with Interest: If you pawn your jewelry, you will be agreeing to and signing a short-term loan with high-interest rates. The loan term might run from 30 to 90 days.
• Repayment or Forfeiture: In order to reclaim your jewelry, you will have to repay the loan with interest. If you fail to do, you will forfeit ownership of your jewelry.

Pawn shops typically give away small loans, regardless of how pricey your jewelry is. So if you’re pawning a necklace worth $900, securing the same amount of loan is highly unlikely. Chances are that you’ll only get a fraction of your jewelry item’s market value. This is how they profit. When you default.

According to the National Pawnbrokers Association, $150 is the average loan one can receive from a pawn shop. As such, pawning valuable jewelry for a small amount isn’t wise, especially if you’re unsure whether you can return the money on time.

Pawn Shops Charge Interest

Experts recommend against pawning expensive gold and diamond jewelry because the unpromising cost-to-benefit ratio doesn’t make financial sense. To get your jewelry back from the pawn shop, you must return the borrowed money and interest fee before the deadline. Although pawnshop interest fees vary from state to state, they are usually pretty steep in comparison to traditional loans.

Furthermore, the interest fee increases with the time you take to return the borrowed money- that is, if the agreed-upon time has passed. Additionally, the interest fee increases depending on the loan term. The longer it is, the more you have to pay. In many cases, borrowers end up paying more than the value of the pawned jewelry item.

You Could Lose Your Jewelry

According to estimates by the National Pawnbrokers Association, only 20% of pawn loans aren’t returned. So, most people eventually get back their jewelry and other belongings. However, taking such a risk with expensive jewelry items isn’t a good idea.

In addition, the pickup rate for pawned items is extremely low in many places around the US. So, many people pawning this jewelry for fast cash end up losing it. While pawning other items may be fine, jewelry isn’t something you’d want to risk unless you have no other way to get a loan. It’s a bad idea if you’re considering pawning family heirlooms for a small amount of money.

You Might Not Get the Cash You’d Expect

Unfortunately, pawning your jewelry will give you the lowest amount of money you could get for your valuable items. While the pawn shop business model definitely helps in tough times, it has more benefits for the pawnbroker than the borrower. Typically, you shouldn’t expect more than 50% of your jewelry item’s market value.

While pawn shops offers some benefits, it can be risky, so it is not always a good idea to pawn your jewelry for a small amount of cash. Cash for Gold USA offers a risk-free and convenient way to sell gold and jewelry for a good price.

Best Pawn Shop Alernative: Cash for Gold USA

With Cash for Gold USA, you can avoid settling for a risky action like pawning your jewelry and instead work with our trusted and experienced team. Here are just a few reasons why we are the best alternative:

Convenience

With thousands of customers, Cash for Gold USA is convenient for sellers like you. We have one of the biggest customer networks, with many people trusting and relying on the services. We provide special attention to each customer, guiding them to make the right decision regardless of what they are selling. Additionally, we deal in all kinds of jewelry, including rings, necklaces, bracelets, diamonds and more, even broken jewelry. (Pawn shops may not be interested in broken gold jewelry that can not be resold.)

Fairness

Cash for Gold USA has GIA-certified appraisers, so we provide accurate assessments and fair payments for your valuable gold, diamond, or silver jewelry. Our assays promise the most value for your possessions after examination and appraisal. As a customer, you can compare our process with other gold and jewelry buyers before making a final decision.

Risk-Free

When you feel the need to pawn your valuable and sentimental possessions, eliminating the haggling and stress of pawn shops is often the wisest option. You can rest assured that you’re getting the best price and the most benefit from your valuable gold, silver, and diamond jewelry. The best part about selling your jewelry to Gold for Cash USA is that it’s risk-free. If you’re dissatisfied with our offer, you can get your valuables back — no questions asked.

Why Sell Jewelry to Cash for Gold USA Instead of to a Pawn Shop

Higher Payouts: Our GIA-certified experts will assess your jewelry and make you a competitive offer, and we have our Price “Beat” Guarantee.

No Loan, No Interest: When you sell your jewelry to us, you will receive a fair, one-time payment. You will not have to worry about trying to find money to repay the loan.

‍No Risk of Losing Your Jewelry: When you sell to Cash for Gold USA, the transaction is complete. You will not have to worry about forfeiting your jewelry if you cannot afford to repay the loan.

‍Fast and Easy Process: Do you know we will make you an offer within 24 hours of receiving your jewelry? You can choose quick payouts like PayPal or a virtual credit card.