Some morals come at the end of a story, but this one is coming at the beginning: If you need to sell your jewelry, consider all your options before going to a pawn shop. Why, you ask? It all comes down to how pawn shops determine value.
Pawning vs. Selling
A pawn shop offer first depends on whether you’re pawning an item or selling it. These aren’t the same thing. If you’re pawning an item, you’re essentially using it as collateral for a loan. You intend on coming back for it when you can pay that loan (plus the interest accrued) back.
Do You Get More if You Sell or Pawn?
If you choose to sell your item, you will probably get a higher offer from a pawn shop.
How do Pawn Shops Determine Value?
Most pawn shops refer to blue book market value or certain databases for the items they buy. They may also do some internet research to understand retail and wholesale prices.
But at the end of the day, pawn shops consider a price that will justify a profitable resale value.
Do All Pawn Shops Negotiate?
Most pawn shops do negotiate for sales – but don’t expect to get more than 60% of the value of your item. Remember – their end goal is to resell your item for a profit. They don’t care about the sentimental value or history, or even the unique details that add value.
Is It Better to Pawn or Sell Jewelry?
It depends on your situation. If you want your item back, and can afford to pay back the interest, pawning may be a good option for you.
But if you need cash in a hurry, and want the highest offer, selling is the way to go. If you’re considering selling to a pawn shop, we caution you. Pawn shops buy all sorts of items. They aren’t experts in any one of the items they buy, so how can they offer you a fair deal on your jewelry?
It isn’t easy to sell your jewelry off, and when you’re selling to someone who can’t see the intricacies behind its quality, you are going to be low-balled.
When you need cash in a hurry, it’s easy to sell to the first person that gives you an offer. But you’re the seller here and you have the power—that’s why it’s so important to shop around for the best buyer.
Diamond Buyers is Houston’s most trusted jewelry buyer.
Find Out Why
Researching Jewelry Pawn Shops
Before selling anywhere, always arm yourself with as much knowledge as possible. Do research on the market, explore your selling outlets and really know what it is you’re selling. Get multiple independent appraisals or lab tests that can help prove your jewelry’s worth. We promise you – it’s absolutely worth your time, and you’ll thank yourself later!
We have a lot of resources here on our blog that can help during your research phase:
Sell to a Professional Jewelry Buyer
The reason is simple—certified jewelry buyers know jewelry worth. They specialize in jewelry value, have been trained in giving accurate appraisals and know the current market.
Need more convincing? We dove into this topic in another post: Why Sell Jewelry to a Certified Gemologist?
Whether you’re looking for a safe solution for quick and fast cash, or just have some extra jewelry that’s been gathering dust in your jewelry box, the professionals here at Diamond Buyers are ready to help!
You can start with a free, no-obligation appraisal of your fine jewelry, diamonds, watches, wedding and/or engagement rings.
You can walk away with more money in your account within just a few business days.
FAQs
Most pawn shops refer to blue book market value or certain databases for the items they buy. They may also do some internet research to understand retail and wholesale prices. But at the end of the day, pawn shops consider a price that will justify a profitable resale value.
How does a pawn shop determine value? ›
When you bring in an item to sell or pawn for a loan, the pawnbroker will already have an idea of its market value or be able to determine its value with a quick check of his resources at hand – an appraiser, or online sites such as eBay, Craigslist, Amazon or UsedPrice.com.
Can pawn shops lie about value? ›
A: You do not have a claim for this. The buyer/pawn shop has no duty to tell the truth about what they believe the value of your property is worth. As the owner and seller, you should know or be capable of researching the fair market value of your property before you sell it.
Do you get more money pawning or selling at the pawn shop? ›
Another benefit of selling something to a pawn shop instead of getting a pawn loan is that you typically receive more money for the item. The pawn shop will determine the value and make you a slightly lower offer. After all, it still needs to sell it to make a profit.
What is the difference between selling and pawning at a pawn shop? ›
When you decide to sell an item, you forfeit your ownership of it in exchange for cash. Pawning, however, doesn't mean you have to lose ownership. When you pawn an item, you give your item to the broker as collateral for cash. If you pay them back before the timeline expires, you can retrieve your item.
How do pawnbrokers value items? ›
It's All About Market Value
Market value or OMV (Open Market Valuation) is the price at which an item would sell for in a competitive auction. It's the price that a willing buyer is prepared to pay a willing seller.
How much will a pawn shop give you for a $1000 item? ›
According to the search results, pawn shops generally offer loans ranging from 25% to 60% of an item's resale value [1]. So, if you were to pawn a $1000 item, you might receive a loan amount between $250 and $600.
What will pawn shops pay the most for? ›
Generally speaking, this list of items tends to result in the most cash for your pawn.
- Top 10 Items to Pawn for Cash.
- Jewelry. ...
- Precious Metals. ...
- Gemstones. ...
- Electronics. ...
- Firearms (registered to you) ...
- Power Tools + Equipment. ...
- Antiques / Collectibles.
Don't Be Afraid to Haggle
Haggling is a common practice when it comes to pawn shops, so don't be afraid to negotiate. Start by making an offer that's slightly higher than what you're willing to accept, and be prepared to meet somewhere in the middle.
What is the average profit of a pawn shop? ›
Earning interest on loans and profits on retail sales are the principal income sources for the standard business model for a pawnshop. Pawnshopsg typically aim to generate overall net profit margins of at least 15% to 25%.
Pawning is a good choice when someone needs cash but does not want to lose ownership of an item. This includes getting a loan (AKA a pawn) based on the value of the item pawned, receiving quick cash, and the return of the item when the loan is paid off by the scheduled due date. Pawn is a non-recourse loan.
What are the disadvantages of pawning? ›
You Can Lose Your Property. If you default on your loan to a pawn shop, the property you left at the shop to obtain the loan becomes the property of the pawnbroker. You're usually given some time, typically 30 to 60 days, to pay your debt and get your property back. If you don't, the pawnbroker can sell it.
Is it better to pawn or sell gold? ›
Deciding between pawning and selling your gold is a matter of weighing the urgency of your financial needs, your attachment to the items, and the potential value of your gold. While pawning offers quick cash and the option to keep your gold, selling can provide higher payouts and immediate relief.
What's the most a pawn shop will pay? ›
Most pawn shops offer loan amounts of 25% to 60% of your collateral's value. Be aware that pawn shops have high APRs that can make them one of the most expensive options to borrow money.
How much will a pawn shop come down on price? ›
Most pawn shops do negotiate for sales – but don't expect to get more than 60% of the value of your item. Remember – their end goal is to resell your item for a profit. They don't care about the sentimental value or history, or even the unique details that add value.
How to compute pawn value? ›
How Do Pawn Shops Determine Value?
- They check items against their existing inventory. ...
- They take into consideration the materials, workmanship and condition. ...
- They check value databases. ...
- They take into account the demand. ...
- They may consult a specialist. ...
- Be honest about the condition of your jewelry.
The appraisal takes into account the condition of the item, and sometimes even the circ*mstances of the seller. Although in-house and third-party experts are frequently consulted, pawnbrokers typically depend upon online resources and "blue book" databases for a general idea of current market value for most items.
Do You Get More if You Sell or Pawn?
Is It Better to Pawn or Sell Jewelry?