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
Pawn shops use factors like market value, resale value, current supply and demand of their local market, profit margin, and condition of the item to determine value. Pawn shops are businesses that loan money to customers when they bring valuable items used as collateral; they also buy things outright.
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.
Is it better to sell or pawn at a pawnshop? ›
Value. If you decide to pawn an item, you'll likely receive less cash than what it's worth. Selling, however, typically means you'll receive a higher amount of money. Keep in mind, though, that even if you receive less cash to pawn an item, you'll be given that item back as soon as you repay the loan.
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.
Can pawn shops lie about value? ›
Pawn shops have no legal duty to provide you with an accurate appraisal of the value of any item you give them. Buyer/seller beware.
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.
What is the most valuable thing to pawn? ›
1. Jewelry. Across the board, jewelry (authentic, real jewelry - not costume jewelry) generally yields the most amount of cash.
How much can I get for a 50 inch TV at a pawn shop? ›
Pawn shops that buy TVs will also pay more for a bigger screen. If your TV's screen is less than 26 inches, you'd be lucky to get over $50 for it. If your screen is greater than 42 inches, though, a pawnbroker like GEM might offer you over $200, provided the TV is one of the brands mentioned above.
Do I get more money if I sell the pawn? ›
Often, they think it will get them more money. Others hold the exact opposite viewpoint. The truth is (when pawning or selling) that the cash offered to the customer is based on the merchandise, not the type of transaction. Whether to pawn or to sell primarily it depends on the customer's needs and preferences.
What percentage of an item does a pawn shop give you? ›
How Pawn Shops Work. At a pawn shop, you leave your property and, in return, the pawnbroker typically lends you approximately 25% to 60% of the item's resale value. The most commonly pawned items are jewelry, electronic and photography equipment, musical instruments, and firearms.
Yes you absolutely can negotiate prices at a pawn shop. In fact, you are expected to negotiate. Anyone in a pawn shop you deal with who does not see you negotiate will wonder what the heck you are doing. So yes, go into the pawn shop expecting to haggle, whether you are buying, selling, or pawning.
What are the disadvantages of a pawn shop? ›
- High interest rates: Pawnshop loans tend to have high interest rates, fees and other costs associated with them.
- Small loans: Large loan amounts are generally not available from pawnshop loans.
- Item forfeiture: Failure to repay the loan means you will lose your pawned item.
First, remember that pawnshops are businesses. They cannot offer you the full market value of an item because they need to turn a profit to pay for buildings, lights, heat, fixtures, employees, advertising and more Otherwise, they're paying for a storefront filled with items they may not sell!
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 do pawnshops appraise? ›
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.
What happens when you sell an item to a pawn shop? ›
If you don't pay back the loan the pawn shop owns the merchandise you pawned. If you sell an item to a pawn shop the transaction is final. You get cash and the pawn shop can resell the merchandise. If you decide you want the merchandise back, you must pay the pawn shops selling price.
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.
Do You Get More if You Sell or Pawn?
Is It Better to Pawn or Sell Jewelry?