Most people enjoy the concept of being able to pawn their belongings at a pawn shop. People have been doing this for centuries. Pawning your jewelry may seem like a straightforward way to obtain quick access to cash. Pawnshop owners are able to gain much success when they are able to buy valuable items at prices that are reduced. They will then be able to make a nice profit off of the jewelry when they re-sell the items. Even though pawning jewelry may sound like a great idea when your finances are tight, it is important that you understand you are more likely to lose money in the long run if you choose to go this route.
What to Watch Out For
Every pawn shop has different regulations, so not all are alike. If you don’t mind losing out on money by selling your jewelry to a pawn shop, then you should watch out for several things including:
- Make sure that the fees are all stated clearly and watch out for hidden charges
- Read through the fine print pertaining to annual interest rates.
- Only do business with pawnshops that verify your identity and that work with local law enforcement to make sure that stolen items don’t end up in their store.
- Get ready to bargain with the owner. Before heading to a pawn shop, check out places online such as Etsy and eBay to see how much similar items are selling for.
- Check out other pawnshops in your area to determine which one can offer you the right amount.
- Check out customer reviews to see what others have had to say about their experience at the pawnshop you are considering.
What are some alternatives to pawnshops?
If you no longer want or need your jewelry, it only makes sense to try and sell it. Maybe you have an engagement ring or bracelet that is no longer in style. Or maybe they just don’t fit your taste anymore. However, there are other alternatives that are more profitable than pawnshops.
You can check out consignment stores near you, as they make great alternatives to pawnshops. However, their sale process normally takes longer and the selling price may be disappointing to you since these places have high overhead costs.
Be aware if you are selling your jewelry in person to people you have met online. Be sure to follow certain practices if you do sell to someone you’ve met online:
- Avoid meeting strangers alone, even if they seem friendly.
- Never make your address public.
- Make sure that you meet in a safe location such as a police station or other similar location.
- Only accept cash, and know how to identify fake bills.
When you have made the decision to sell your old jewelry, think about how much time you will need to invest in the process. Maybe you will have to take pictures of your items and write a description to attract people to them. This is a great option for those who don’t think selling to a pawnshop will be a good fit. Sometimes if you wait a few days, you can expect a higher return.
You may also want to consider selling to online jewelry auctions instead of pawnshops. This is an attractive option since it gives you exposure to a wide audience including online venues. It also provides you with secure and safe transactions, and there is no need to worry about meeting people in person.