Realize the value of your jewelry
Jewelry has been pawned in pawn shops ever since pawn shops came into being over two thousand years ago. In those days, and for many centuries after that, jewelry was made of precious metals and gemstones to which value was always associated. Even to this day, valuable jewelry is made of a variety of rare, valuable metals and gemstones that signify wealth and significance. Pawn jewelry is traded on a daily basis within pawn shops as people look to realize the value that their jewelry has matured to or to use the valuable piece of jewelry or a collection of high value pieces of jewelry to be used as collateral for a short term, low cost loan that they want to take out.
Pawn shops have undergone a renaissance of sorts to cater for high wealth individuals who are looking to pawn jewelry and other valuable items that they own. Pawns shops have undergone an image change to a more professional looking business, a more inviting look and feel and a friendlier attitude towards customers. A visit to a licensed, reputable pawn shop these days will reveal a cross between a high end jewelry or watch store with a bank. The display and customer service rooms are bright, comfortable and are more in line with transactions involving valuable movable assets.
Pawn shops are looking for a number of items that they can then go on and sell to collectors and within markets for high demand items. Jewelry has always been a staple of pawn shops but as watches were developed and became rare or vintage items, they have become an important part of the pawn shop portfolio. Similarly, as the art market as developed and evolved, paintings and other art forms with real value and demand associated with them have become another business element for pawn shops. In fact any item where there is a collectors market and items are seen as investments rather than consumable goods may be bought, sold or used as collateral by pawn shops. Electronic items such as cell phones and laptops, or televisions and old VCR players are not typically handled by pawn shops. These items rapidly depreciate in value as the technology used in these items becomes better and more advanced. This is similar to the vast majority of cars which are sold with in second hand car markets at the depreciated costs. Of course there are rare and vintage cars which do have investment and potential appreciation value which may be handled occasionally by pawn shops. The same goes for motorbikes that have unique characteristics and are in high demand as collectors’ items.
Jewelry, however remains that largest share of pawn broker deals and transactions predominantly because of their precious metal and gemstone content which can then be sold onto a variety of customers. These may include jewelry collectors who are looking for rare, designer manufactured pieces as collectors’ items. Other buyers of jewelry, whether intact or damaged will be looking purely at the precious metal and gemstone content and quality as they may be wanting to melt down the metal for use in jewelry or ingots and to sell the gemstones in their natural form to investors in those gemstones. As a result, most of the customers of pawn shops will be looking to sell jewelry to the pawn shop or to use the jewelry as collateral for a short term, pawn loan.
The value associated with jewelry depends on a number factors. One of the most important is of course the precious metal and gemstones content. Gold, Silver and platinum of the precious metals with the most value attached to them. All these precious metals are globally traded and have price indices associated with them. The price index of the precious metal is the fundamental determinant of value for a jewelry piece. Of course jewelry is not always made up of pure metal with many jewelry pieces in fact being a metal alloy or a mixture of metals. This is done to make the jewelry piece more robust and less susceptible to damage. All precious metals have a grading system which defines the purity of the metal alloy. Most people are familiar with the karat system which is what defines metal quality. A maximum of 24 karats signifies the precious metal piece is more than 99% pure with little or no alloy components. A one karat precious metal will however only have 1/24th precious metal content and is thus not pure at all, with the majority of the item being made up of alloy components. Thus, depending on the purity of the precious metal or metals used in the jewelry piece, a value can immediately be attached to the jewelry piece.
Jewelry also often contains rare gemstones wityh diamonds being the most popular. The value of a diamond is less immediately obvious as there are factors such as the size of the diamond, the clarity of the diamond, the presence of artifacts in the diamond and the color of the diamond. The defined value may be less clear to the lay person, but an expert in diamond assessment will very quickly be able to put a value to the diamond after a thorough examination and cross referencing with globally use scales for clarity, weight and the other value factors.
Lastly, the rarity and brand or manufacturer of the jewelry piece will also contribute value to the item or items. Rare or bespoke jewelry can fetch incredibly high values. Similarly, vintage jewelry that has been carefully kept and stored to maintain its, almost original, condition can have value associated with it that surpasses just the precious metal and gemstone content. More recent jewelry pieces manufactured by designer brands can also have additional value attached to them. A Tiffany & Co Jewelry piece that was manufactured in small quantities or had unique characteristics may be considered valuable however a Faberge jewelry piece, which is almost always manufactured in small, bespoke quantities and has jewelry designer heritage associated with it will likely be more valuable than a Tiffant& Co piece.
The descriptions and analysis above, provides an outline on what is considered by pawn shops when a customer is looking to pawn jewelry. If you are looking to pawn jewelry, then it is best to do some homework before going to your nearest pawn store to ensure you are prepared for the negotiations over value and to assist in meeting your value expectations. A look at your jewelry piece and the certificate of authenticity of your jewelry item will reveal the precious metal and gemstone quality. As this is the fundamental determinant of value for most jewelry, you will have an idea as to what a ballpark value will be. The condition, designer and age of the jewelry piece are, as has been described, more intangible determinants of value but some further reading on jewelry values and what the jewelry market is current demanding, will give you an indication as to whether there may be additional value associated with the jewelry piece.
Once you have made up your mind to pawn jelwelry that you own then the visit to the pawn shop will almost certainly be an enjoyable one. Pawn shops are very professional yet friendly stores owned and managed by people looking for win win transactions. After all they are looking for repeat customers and are hoping to welcome you back with other movable investment assets you have. The pawn shop will generally provide you with the option of selling the jewelry piece at a value that is determined by their in house jewelry assessors. These experts are very knowledgeable of the value determinants for jewelry and the market or collectors demands for certain jewelry types. Once valued you will be able to sell on your jewelry piece to the pawn shop and walk out the dooe with a check.
The second option you have when you want to pawn jewelry is to use the jewelry piece as collateral for a pawn loan. In this case you hand over the jewelry piece for safe keeping and storage in exchange for a loan amount and the obligation to pay interest on the loan amount. These loans are typically short term, most often up to a maximum of ninety days and you will have to pay back the capital loan amount and the total interest payment. Once you do this, your jewelry piece, which has been insured for loss, theft and damage by the pawn store for the duration of the loan period, is handed back to you. The benefits of a pawn loan are the shorter loan durations and the lower interest payments because of the use of collateral, when compared with the majority of banks. If you are wanting to retain ownership of your jewelry piece but use it as leverage for a low cost loan, then this is a highly recommended strategy to take.
If you are looking to cash in on your jewelry investments or to use them as collateral for a low cost loan, then pay your nearest pawn store. You are likely to be surprised at your experience and even happier when you pawn your jewelry and realize the value it has kept or grown for the lengthy time you have held on to your precious jewelry.
Put your jewelry to good use
Jewelry is most often seen as aesthetic. An accessory to complement clothing, a symbol of engagement or marriage. It is often a fashion statement or a chance to feel dressed up and ready to show off. But jewelry is much more and can have other functions and importance besides just being worn. Higher end jewelry is frequently made up of precious metals and stones that have inherent value. The jewelry doesn’t just have to look expensive. It can also be put to even further good use as an investment or used in trade to make money or loan money. There are many ways to sell your jewelry to make money but one of the easiest and quickest ways to make money from your jewelry is to pawn jewelry.
Higher-end jewelry has inherent value in it given the content of gold, platinum or silver and often containing diamonds, tanzanite and other precious stones. Jewelry containing precious metals and precious stones looks great but also adds value to your jewelry pieces meaning that this kind of jewelry can act as a financial investment as well. However the value of your jewelry is useless if there isn’t a second hand market for your jewelry. Fortunately there is a thriving second hand market for jewelry of value particularly from people who collect higher-end jewelry and people who see jewelry as an investment that will grow in value with time. Second hand jewelry can be sold in many ways such as online using internet based auction or second hand selling sites or privately through advertising in newspapers or on notice boards. However there is an alternative option to these high effort, risky practices and that is to pawn jewelry at your local pawn store. Pawn stores are extremely convenient, effortless physical stores where you can walk in and buy jewelry, sell your jewelry or use your jewelry as collateral for a pawn loan. When one talks about pawning jewelry though, it most often refers to selling your jewelry at a pawn store or taking out a pawn loan using your jewelry as collateral against the loan.
If you are considering to pawn jewelry from your collection then there are a number of steps that you should take before you make a trip down to your nearest store. The first step is to consider which items in your jewelry collection you are wanting to part with or use as collateral. Your wedding or engagement ring may not be your first item of choice as it has sentimental value and despite its inherent value it is probably a jewelry item you want to keep on your index finger. The same may go for necklace passed down by your grandmother. However you will no doubt have other items of jewelry that have less meaning or are of high enough value that they can bring other major financial benefits.
The second step is to assess your jewelry for potential value. You will probably recall what you paid for your high-value jewelry when it was first bought and may vaguely recall the component characteristics that gave this jewelry its value. It is however very worthwhile that you go back to your jewelry and determine exactly what that jewelry is made of and what its buyer’s value was when you first bought it. This will be difficult for jewelry that was given or passed on to you but there are still ways of establishing what that jewelry is made of. Most pieces of jewelry that are made of gold, platinum and precious stones will have a certificate of origin or certificate of authenticity that states the exact purity of the precious metal and the karat weight of precious stones. If you don’t have the certificate of origin or authenticity then all precious metal containing jewelry will have the karat purity stamped on to part of the jewelry within the metal. Once you have established the purity and weight of your precious metal and precious stone containing jewelry, it is important that you understand the meanings of these values as they are inherent in the value of the jewelry.
The purity of precious metals is measured in karats. The maximum karat a precious metal can have is 24 karats and this refers to between 99% and 100% purity of the metal. Less pure precious metals will have a lower karat value as other metals have been included with the precious to make it stronger and more resistant to damage. A ring that is 6 karat gold will be made up of 25% gold and 75% other non-precious metals. A 6 karat gold ring is thus only 25% pure and it is largely this 25% of gold that will determine the value of the ring.
Diamonds and other precious stones are also measured in karats. The karat refers to the weight of the diamond with one karat equaling 200mg of diamond. As the karat weight of a diamond increases its value will increase. However, unlike gold and precious metals, there are other factors which determine a diamonds value. The cut, clarity and color of a diamond play a significant role in its final value. These criteria are very difficult to assess and allocate value to by the layperson and expert assessors and evaluators, often with a background in geology, will be consulted to determine the final value of a diamond or other precious stone.
Once you have determined that you have a jewelry piece or pieces of value and you have decided that you are willing to pawn jewelry, then it is time to visit your local pawn store. When you pay them a visit and ask to pawn your jewelry, they will first go through an assessment and valuation exercise. You may have determined a ballpark figure for the value, but they will look very carefully into the karat weight of the precious metal and, using the globally recognized and current gold, platinum or other precious metal price for an ounce of the metal, determine the market value for the jewelry. In the case where you pawn jewelry with precious stones, the expert precious stone assessor employed by the pawn store will look very carefully into the other criteria for precious stone valuations, namely the cut, color and clarity of the stone. Once all the information has been gathered by the pawn store, they will then propose a buyers value for your jewelry or collection of jewelry.
There are two options when you pawn jewelry. You can make an outright sale to the pawn store and you will receive a check to the pawn store assessed value of your jewelry and you immediately give up ownership of the jewelry. You walk out with a check that you can then cash for use as you wish. Alternatively you can take out a pawn loan using the jewelry as collateral against the loan. In this transaction, you agree to repayment terms for the loan and an interest rate for the loan. You will then pay installments on the capital and interest amounts to the pawn store until the full capital and interest amounts have been paid off. During this time the pawn store keeps your jewelry until you have paid back the full loan and associated interest back to the pawn store within the agreed upon repayment term. You then receive back the jewelry and have full ownership rights. The pawn store needs to keep your jewelry safe and secure and must insure the jewelry against damage and loss. Pawn loans are beneficial when compared with other financial institution loans in that they can offer lower interest rates because of your pawn jewelry used as collateral and pawn loans tend to be of shorter duration than bank loans. A pawn loan also has no bearing on your credit score and your credit score is not used to determine pawn loan eligibility. Taking out a pawn loan is also a quick and easy process and you could walk out of a pawn store with a check on the same day that you take your pawn jewelry for assessment and valuation.
Jewelry is thus not just for nights out or to smarten up work outfits. Yes, it is very useful and important for these functions but your jewelry can be put to good financial use as well. Perhaps you are bored with a piece you bought years ago or you need cash to make other investments. To get money easily and quickly using your jewelry then your local pawn store is the first place you should try. Pawn stores are safe and governed by a number of state and federal laws, specifically for protecting you as the customer. Pawn store owners and managers are also experts in the assessing of precious metals and precious stones and you can be sure that you will be getting market value for your pawn jewelry. Why don’t you make time to go through your jewelry collection and begin assessing its value to see if now is the time to start pawning some of your items.