With the current economy, people are struggling to make ends meet and need to make some extra money wherever they can.
One of the many options that have gained popularity is the selling of valuable jewelry at a pawn shop. Nevertheless, what if you do not want to part forever with your treasured belongings? A pawn loan may come in handy for you.
Prior to entering into a loan agreement with a pawn shop ensure you do your homework about the shop and perfectly understand how the loan works.
The following is a simple overview of the loan.
How a Pawn Loan Works
Although terms and conditions among pawn and jewelry shops may vary, a pawn loan works in the following manner:
When you take your piece of jewelry or other items to the pawn shop, the item is then appraised by an expert appraiser. He or she then gives you an exact price for your item as well as the interest rate on the loan.
If you agree to the terms and conditions as well as the price, you will then receive the amount of the agreed upon loan. When this happens, the item then turn into a collateral against the given loan. Pawn shops usually vary. Nonetheless, most pawn loans are two to six months.
When you have fully settled your loan in full, with interests included, you receive your item back. In case you do not pay your loan within the period outlined in the terms, then the collateral becomes Pawn’s Shop property. If you are not able to repay the loan, then you may surrender the loaned item as payment in full or you can apply for a loan renewal or extension.
Loan Extensions and Renewals
Quite a number of pawn shops normally offer extension and renewal periods. When an extension is given to you, you may prolong the length of your loan according to state law. Most of the pawn shops will need you to pay a percentage of the interest you are owed.
The other option is a loan renewal. In this, you pay the accumulated interest on the loan, and then a new loan is put down. The initial or principal loan amount, as well as the interest rates, remain the same. Nonetheless, the loan due date is reset to the beginning.
An Alternate Way to Sell
There are other methods that you can use to sell your jewelry. An example is over the internet. There are several places that you can visit online to sell your item. You could choose to set a fixed price for it and post an ad on Craiglist. They have a category that is specific to selling jewelry for every city that is serviced under Craigslist. All you are required to do is to post a simple ad with a picture of your item to generate interest. In case you are living in a larger city, then you will be sure to attract many interested parties.
Well, another method to sell your jewelry online is to set up an auction on eBay. This will allow you to get the highest bid for your item. However, there is a lot of competition in this area.
Both of these methods assume that you have jewelry that is nearly new or that is flawless. If you have gold jewelry that needs some work or is broken, then your best bet will be to sell these through an online gold dealer. The only requirement is that your jewelry must be pure gold. It does not have to be the most attractive item that anyone has ever seen. The quality of the gold is the only thing that matters here. This method works great for old and dingy gold jewelry as well.
The only problem with this approach of earning from selling jewels is the fact that you will forever part with your cherished treasures. You will no longer see it for the rest of your life.
What to Know About Selling and Pawning
- In-demand items to sell or pawn
- Know how a pawn loan works
- Find the right pawn shop like Gelman Pawn Shop and Loan in Pittsburgh, Pennsylvania
- Make sure your item sparkles
Other things to keep in mind include:
- Ensuring that the setting of your piece is well fastened and secure.
- Use a lint-free, soft jewelry cloth or a light cotton cloth when removing dust or other impurities from the piece since they may cause light scratching when cleaning.
- Use a mild detergent – do not use any harsh, abrasive cleaners such as chlorine and ammonia, especially on opaque gemstones.
- Avoid using pins, tweezers or other sharp objects when removing grime and dirt, as they may damage the stone or setting.
- Never clean your jewelry over a sink. This is because a stone may come loose and then fall into the drain pipe.