Jewelry Loan Versus Selling Jewelry—Consider Your Options

At Arizona Jewelry and Loan in Scottsdale we know that there can be many reasons you are thinking about selling your jewelry, or at least using it as collateral against a loan.  Your ideas and situation would not be new.  Pawning jewelry in a “jewelry loan” has been happening for thousands of years.  The most often cited reason for considering a jewelry loan is that an unexpected expense, something that was nowhere in your budgeting thoughts, has popped up and needs to be taken care of.  Kings and queens have pawned their jewels to finance wars and major exploration trips through the years.  It is thought that Queen Isabella pawned her jewels to finance Christopher Columbus’ exploration trip to North America.

You may want to get rid of jewelry because it brings back bad memories or you just feel that it no longer belongs in your life.  If one of these is true, then you probably want to outright sell your jewelry, not pawn it.  But if you would prefer keeping the jewelry in the long term, a jewelry loan is for you.

Don’t let reality shows like Pawn Stars or Hardcore Pawn mislead you into believing that the only option is to sell your items.  Most people prefer pawning their belongings if they can afford to.  If you think about it, keeping a few valuable items that you really don’t care about could make good sense if you need to get money quickly through pawning on a regular basis.

Dealing with a pawn shop is easy and confidential.  There are no background checks.  Even if you are unemployed or have a bad credit score you are still eligible for collateral based loans that pawn shops provide.  The loan you receive is based solely on the value of the items you are pawning.  Pawn loans do not affect your credit score positively or negatively.  Pawn brokers do take the risk of taking in an item that is not worth much but they are very careful and knowledgeable so they are not fooled very often.

Selling jewelry

Think about what you may have to sell.  Antique or vintage jewelry, estate jewelry, pieces of fine gold or silver jewelry, diamond and gem stone jewelry, and almost any other pieces of jewelry can be used as collateral for a loan but only the best pieces will fetch a good price if you are selling.  Watches can also be sold or pawned.  Remember that once sold you cannot expect to get your items back.

Selling jewelry, rather than pawning, is likely to bring you more money but it is not the answer for everyone.  Sometimes it will make more sense to find more collateral and get a loan rather than give up your prized jewelry by selling it.  This is a 100% personal decision that only you can make.  Take all the time you need to be sure you feel comfortable with your decision.

Be sure that you have cleaned the jewelry you are going to sell.  Make each item spotless, bright, and sparkling.  Any trace of makeup or dirt will decrease the value.  Check moving parts such as clasps to be sure they work properly.  Consider replacing any damaged clasps or linkages.  A non-working clasp can quickly turn a delightful piece of jewelry into scrap metal.

You want to be sure that the person appraising your jewelry is a qualified appraiser.  That is the only way to get the best price for your jewelry.    Work with only reputable pawn shops.  Consider checking out reputation online through both the shop’s website as well as independent websites.

If you have decided to sell your jewelry our staff will evaluate your jewelry and make an offer.  This offer is based on how much we feel your item can be resold for.  We will not pressure you to sell immediately.  We understand that you may have not finalized your decision.  You could still want to check out other pawn shops, or even take the jewelry to a jewelry store for a second opinion appraisal.

Remember that if you accept our offer you can have your money yet that day.  Do not consider mailing your jewelry to an online pawn broker.  Sending away valuable pieces, even when they are ‘insured,’ is unsafe and an easy way to lose your jewelry.  Also keep in mind that a local establishment will not risk their reputation and credibility by giving you a low price for your jewelry whereas an online business will not feel an attachment to the community.

You cannot be sure of what will happen to your jewelry once you have placed it in the mail.  Some companies will go so far as to melt down your gold to find its true weight before giving you an offer.  If you don’t like their offer there is no way to get your jewelry back.   Even if they don’t go that far, it is likely that they may “damage” your jewelry in an effort to figure out exactly what you have sent them.  You will be able to watch our staff handle your jewelry and we can even show you where it will be stored if you choose a loan rather than selling.

Selling vs. Pawning: Which is Better? | March 2020 | PawnGuru Blog

A collateral loan—pawning your jewelry

Using jewelry to back a “jewelry loan” may be the perfect answer to your problem if you have the means to repay the loan and do not want to part with your jewelry.  You will get the cash you need quickly, yet retain ownership of your items.

Many of the same ideas for selling jewelry pertain to using jewelry as collateral.  You may find that jewelry that would not be worth selling could still be used as security for a loan, though you would need more of it because you will get less money per item.

You still should be sure that you have cleaned the jewelry you are going to pawn.  Make sure each item is clean and shining.  Any trace of dirt can change color and clarity which will decrease the value.  Check moving parts such as clasps and consider replacing any damaged clasps or linkages.  A non-working clasp can make a beautiful piece of jewelry into scrap metal in the wink of an eye.

Online pawn shops exist, but you will have to risk shipping the item(s) to them.   You may also find that you will not receive as high of a loan amount for the same items compared to pawning at a local shop.  Shipping also adds time to how long you have to wait to receive your money.  The advantages of using a local pawn shop routinely outweigh any perceived advantage to using an online pawn store.

Feel confident that the pawn broker can be trusted.  You will be surprised at how pawning establishments have changed.  Pawn brokering has moved itself away from the back alleys and shady dealings to become a respected financial business.  They are regulated in all areas of the country by a multitude of local, state and federal laws and statutes.  Interest rates and fees are set my law but do vary from state to state.  Arizona pawn shops are governed by the Sheriff of the county in which they reside.  Because of regulation you should not find differences between pawn shops in regards to interest and other fees, unless you are comparing pawn shops that reside in different jurisdictions.

Be ready to prove your identity and answer many questions.  Don’t be surprised if the pawn broker takes your finger print.  Brokers are careful to avoid taking in stolen properties—it not only is unlawful, it also lowers their reputation in the community.  Many pawn shops work closely with law enforcement officials to catch thieves trying to pawn or sell items.

The modern pawn broker strives to be not only legal but also professional and ethical.  They want you to be a satisfied customer who will tell your friends and return in the future if need for another loan arises.  Stores are kept neat and clean and customer service is considered an integral part of today’s pawn shops.

Be honest in your dealings with pawn brokers.  If you realize that you are not going to be able to pay off the loan as quickly as planned, talk with your broker.  You can change the terms of the loan.  It will cost you more to lengthen the loan, but you will not lose your jewelry.  If you ignore the problem and don’t pay on time you could lose your precious belongings.  An ethical pawn broker does not really want that to happen.  They much prefer that you finish paying off the loan and come back to retrieve your items.  If you are in the military and suddenly called to leave the country your pawned items are protected.  The law assures the protections but most pawn brokers would gladly protect the belongings of a military person even if the laws did not exist.

Don’t hesitate to join kings and queens in getting a jewelry loan.  You may not be financing a war or exploring the world, but whatever your need is it is just as important.  Gather up your pawnable jewelry and head to Arizona Jewelry and Pawn in Scottsdale for a jewelry loan.  You will be glad you did.

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