In our last blog post, we shared what you should and shouldn’t do when wishing to sell your jewelry. When you wish to get cash for your jewelry, there are plenty of “options” vying for your jewelry, and though pawn shops can be a safe way to get cash fast, you will often lose out. Keep reading to learn more about how pawn shops work and why it is best when you desire to get cash for your jewelry that you sell to our jewelry buyers in La Jolla.
What is a Pawn Shop?
A pawn shop isn’t a new idea. Pawn shops have been around for over 3,000 years and were an institution that Chinese, Greek, and Roman businessmen used. What’s more, during the age of exploration and colonization, dignitaries and rulers such as King Edward and Queen Isabella pawned their jewels to fund wars or voyages across the sea.
Pawn shops continued throughout the centuries to find popularity especially during times such as the Great Depression, when money was scarce and debt, aplenty.
How Does a Pawn Shop Work?
Pawn shops can be a treasure trove for shoppers and a life-saver for those looking for fast cash, and they work on a short-term, collateral-based loan system:
- A person will bring in an item and they will agree on a cash value with the pawn shop
- The pawn shop will provide a cash loan to the seller, and the seller will leave their item with the shop as collateral
- If a person can repay their loan, they will receive their item back
- If they fail, the shop will keep their item and put it up for sale.
The majority of the loans given are repaid.
Why You Should Avoid Pawn Shops
Though a pawn shop may seem like a great idea for someone with an expensive piece of fine jewelry looking for cash today, it can not provide the best return. Because of state and local regulations, as well as a pawn shop’s overhead costs, and other factors, those who sell their jewelry will most likely receive cash for only 30-60% of their jewelry’s value.
This may seem like a pretty good deal, if you are expecting only to get a fraction of what you paid for your jewelry. However, you are, so to speak, selling yourself short. Jewelry buyers at reputable jewelry stores like Moradi Jewelers in La Jolla, will give you cash for the full value of your jewelry. And like the pawn shops, they can give you cash today!
Get the Most Cash For Your Jewelry, Today!
Pawn shops aren’t a bad option if you’re looking for cash today. However, they aren’t the best option. If you are looking to get all the money that you deserve, work with the jewelry buyers at Moradi Fine Jewelers and sell jewelry for cash today! Learn more about what we can offer you, on our website!