How to Pawn Jewelry

If you need quick cash, you may find yourself searching on Google for “how to pawn jewelry.” After all, pawning is a long-standing option for helping get people out of a cash-strapped bind. However, before you pawn, understand the process to determine if it is the right option for you.

Before we get started, you should know that pawn shops do not buy costume or fake jewelry. You will need to bring real gold, silver, or platinum pieces to sell. Unsure if your jewelry is real? Your first order of business will be to determine the materials that make up your jewelry.

How do pawn shops work with jewelry?

Pawn shops operate in two different ways when it comes to jewelry. You can take out a small short-term loan using your jewelry as collateral, otherwise known as pawning. The other option is that you sell them your jewelry outright.

While pawning, you can expect an offer of 20-60% of the retail value. Selling may garner a slightly higher deal. Let’s review the differences between the two processes.

How do you pawn jewelry?

Pawning is best for individuals who need quick cash and also want to reclaim their items. After all, pawning is a loan. Here’s a basic rundown of how to pawn jewelry when you walk into the pawn shop:

• Value assessment – A pawnbroker will appraise your jewelry to determine its value.
• Offer – If they determine it is valuable enough, they will extend a loan offer to you. This offer will be significantly lower than the value of your item.
• Contract terms – When you pawn an item, you are taking out a loan with interest. The terms vary and are often negotiable. Please note the timeframe for reclaiming your jewelry. This timeframe typically ranges from 30 to 90 days.
• Closure of the agreement – You will either repay the loan with interest to reclaim your item or forfeit the item used as collateral.

How do pawn shops buy jewelry?

If you need cash but aren’t attached to your jewelry, consider selling it outright. Most pawn shops will buy your jewelry but don’t expect a high payout. When you sell to a pawn shop, you sacrifice some of the item’s value for convenience and a quick payout.

When you enter the shop, be aware of the value of your item and how much you’re willing to accept. Be prepared to negotiate. The person who is the better negotiator is the one who is going to get the better deal, according to Pawn Shop Owner Jeff Bernard.

How much can you pawn jewelry for?

The value of your jewelry depends on the metal, its purity, weight, and the current spot price for that precious metal. Let’s use gold as an example. You can check the spot price of gold each day to find the value of one troy ounce of pure 24K gold. The percentage of spot price that a business will pay varies and relies on many factors. Businesses often have numerous overhead costs that they must offset. 

A pawn shop will assess the inherent value, marketability, and condition of your jewelry. If they can’t resell it, there is no reason for them to make an offer. Ultimately, they aim to generate a profit and minimize liability as much as possible. They will never offer you the full value of your item.

So, how much do pawn shops pay for jewelry?

Since the business aims to generate a profit, do not expect to receive a purchase offer at the spot price. When a pawn shop offers to purchase your jewelry, it considers the factors mentioned above.

It’s challenging to determine the actual market value of your jewelry at a pawn shop. Those numbers are often kept confidential. However, estimates range from 25% to 60% of gold’s spot price for the average pawn payout.

You may receive a slightly higher offer price when selling your item outright than when you pawn it. “Pawn shop consumers should remember that they aren’t going to get the full worth out of the items they are selling—30 to 60 percent is typical,” according to Bernard.

Is it better to pawn or sell jewelry?

The answer to this question will depend on your situation. Do you need a small, quick loan? Is it important to you that you can repurchase your jewelry? Is your gold in good, sellable condition? Or are you simply looking to sell some old gold you’ve had in your jewelry box for the most money?

When considering your options, it’s essential to weigh the pros and cons of each. Here are some pros and cons of pawning your jewelry.

Here are some key points to consider when deciding to sell to a pawn shop.

As you can see, both options have both positive and negative attributes. You will need to decide what matters most to you in your situation.

Where can I pawn jewelry?

In the United States, there are approximately 7,771 pawn stores. There is likely a pawn shop near you. If you don’t have one near you, you may also be able to find an online pawn shop happy to help you.

What alternative is there to pawning jewelry?

If you need to sell your jewelry and want to maximize your return, there are alternatives to pawn shops. Alloy Market buys gold, platinum, and silver, regardless of their condition. Our process is straightforward and safe, and we guarantee the highest payout. 

We will even give you an estimate of your item’s value before you decide to work with us. Try out our precious metals calculator to compare our projected payout to that of a pawn shop.

To learn more about our process, read how it works.

Ready to get the most out of your jewelry? We’re here to help! Get your free, no-obligation appraisal kit and receive the highest payout for your jewelry.