Can You Expect A Fair Price From A Pawnbroker

That old jewellery you have no use for can get you cash when to need it most. Collect all that unused jewellery, broken necklaces and earrings and sell them for good money. You can either sell these to a gold buyer near you or approach a pawn shop. Contrary to popular belief pawnshops don't just issue loans against valuable jewellery, they also buy good pieces to resell in their shops. Some pawnbrokers go the extra mile and but broken or scrap gold from the public. They sell this kind of gold to other gold buyers or sell directly to refineries where it is melted and refined to a higher purity.

For centuries, gold has been traded on the open market. Its price goes up and down like most currencies however, it has one advantage over other currencies: the price is constant regardless of where it is being sold or bought. You can reliably calculate how much your gold will be worth regardless of where in the world you may be.

So what should you do when you have gold to sell?

1.       Get your jewellery appraised

Try to find the value of your gold before you approach a buyer. You could approach an appraiser. He will look at all the properties of your gold items and include elements like gemstones used as well as the brand. You can get confirmation on the real value of your gold by taking it to various appraisers.

2.       Educate yourself about the trends and what is happening in the gold market

If you have gold pieces that you don’t wear anymore because it is out of fashion then you might find that find a buyer interested in it regardless of that fact. Most pawnshops aren’t bothered about fashion trends because they happen to be cyclical. Remember how in the ‘90s septum rings, chokers and belly chains were trendy, well the trend has come back and you might find pawnbrokers who would pay handsomely to buy these quirky jewellery items. You can find your typical necklace, bracelets and engagement rings but pawnshops also consider trendy jewellery as it is most likely to sell faster. 

3.       Prepare the gold jewellery for sale

Looks go a long way when selling gold jewellery. Whist gold does not tarnish, it does lose some of its lustre with time. Dust up your old gold jewellery. Dishwasher soap has been known to do the trick, however, if you are unsure, then take it to your local jeweler. When a piece of jewellery looks clean and well taken care of it may be appealing to a pawnbroker.

So, how much can you expect to get from a pawn shop?

What you can be sure of is that the gold jewellery will be less than the market value. If it has been appraised, a pawnbroker will still offer you less than the appraisal value. This is because an appraisal gives you the value of jewellery as if it were brand new. When you sell to a pawn shop, the pawnbroker might offer anything from 20% to 70%. The pawn shop has to factor in overhead costs.

If you have jewellery pieces that have an interesting history and its value is tied to where it was made, how it was made and who wore it, you might be offered something more. Unlike jewelers and gold buyers, pawnshops are more flexible because you also have the option of using the jewellery as collateral.

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