Pawning jewelry is one of the ways you can get cash that you need urgently. This is a personal decision that is very tough to make if you are someone who is fond of your jewelry. If you want to keep your jewelry then do so and look for another source of cash, or you can loan your jewelry and pay your bills as well. You don’t have to do this anymore nowadays. You can now get a loan to pay your bills and at the same time and be able to still own your jewelry. You don’t have to sell your jewelry but still obtain the loan you need on the jewelry’s value. Cash loans are offered by jewelers with your jewelry as collateral for a certain number of days. This type of loan can help you especially if you need cash to pay your bills and you own high-end jewelry. If you want a sure approval of your loan, then the jewelry should indeed be a high end jewelry.
There are some states were jewelers can charge up to 25% a month on a loan. This kind of interest is actually too high. If a reputable jeweler charges between 5 and 20%, then this interest rate is good enough. The rate of the loan will depend greatly on the value of the jewelry. In general, if you are looking for a big loan, then the value of the jewelry will be higher with a lower percentage of interest. A pair of earrings has lower value than a diamond so the diamond will have a lower rate than the earrings.
The value of your loan is determined by the appraised value of your collateral, its condition, and the ability of the company to sell the item. They will offer you a loan amount which depends on the wholesale, or its resale value and not the new retail price.
Make sure that the pawnshop is insured and that you are aware where they store the jewelry. Make sure that your jewelry is insured and secured and kept in a safe deposit box. You should be assured that your jewelry will be taken good care of.
Make sure that the pawnshop gives you an appraisal report with all the details including pictures of the jewelry that you have loaned. It is also important that the jewelry you have loaned are described properly and that you get your exact jewelry when you return to get it back.
Pawnshops do not just give loans to any kind of jewelry. If you are turned down on your jewelry, you should not feel offended. If pawnshops offer cash loan for jewelry then you should understand the risk that the jeweler is taking offering cash loans for jewelry.
Following these rules in pawnshop jewelry loans will give you a good experience.