Jewelry Store vs Pawn Shop: Which is the Best for You?
When people in the Inland Empire are in the market for jewelry, most head straight for their local jewelry store, or to the nearest mall’s huge chain store. However, there are those who consider other options, such as pawnshops, which is fortunate because pawn shops in most cases can save you quite a bit of money on their jewelry investment.
Not only that, but retail jewelry stores and pawn shops have some significant differences that affect the buying process. Some reasons that a pawn shop may be right for you are:
You won’t pay more for trends or brands
For one, unlike retail jewelry stores, pawn shops have the ability to price their gold pieces according to the ever-fluctuating price of gold, whereas design and manufacturing heavily affect the price in a retail jewelry store. That means that in a pawn shop, you are more likely to find a great deal on a name-brand piece than anywhere else. Your pawnbrokers are able to give you a great deal on gold if you visit them at a time when the price of gold is favorable to your needs.
No middle man
Retail jewelry stores buy wholesale and mark their products up around 100%. In the case of the huge national chains, they also invest heavily in advertising and pass the expense of all those television, radio and print ads on to the consumer.
Meanwhile, pawnshops can typically sell similar items at a discount because there is no middle man to force them to earn a considerable profit. Pawn shops essentially cut out the middle man and pass the savings on to you.
Pawn shops will work with you
Pawnshops are unique because they also present an opportunity to trade in unwanted but valuable items for cash or towards the purchase of the jewelry that you want. This makes buying jewelry more accessible to more people. While some retail stores will jewelry in trade, your local pawnbroker is able to give you a higher value on the item in exchange. This is because pawnshops have a multitude of ways to resell jewelry. For example, they can sell jewelry as is, or they can sell precious stones or gold to local jewelers. A retail jeweler usually does not have such flexibility.
What about selling?
If you’re looking to sell your jewelry, a pawn shop is still likely your best option. This is because a retail store must be interested in your specific item in order for them to buy it. If your item isn’t popular or rare or vintage, it is unlikely to sell, causing them to turn your item down.
A pawnshop, on the other hand, doesn’t need to worry about the popularity of an item. The weight and carat of the precious metals and gems in your jewelry are far more critical to your pawnbroker.
Also, if you are not exactly ready to part with your jewelry forever but are still in need of some quick cash, pawnshops can offer you a loan against the value of your items. You can get the money you need without the wait and credit check of a bank or payday lender, as well as keeping your credit rating safe.
If you repay your loan in time and do not pay late or miss any installments, you will get your item back. Not only will you get to keep an object with great sentimental value, but you will also be able to take out a loan against it again in the future if necessary.
How much will a pawn shop pay for my jewelry?
The price a pawn shop will pay will vary because it depends entirely on how much a particular pawn shop will pay for your items. However, you can expect offers that range between 50% – 60% of the value of your jewelry. Don’t forget that a pawn shop is a business, and to keep their business healthy, they must sell everything in their shop for more than they paid for it.
This means that although you now know that a pawn shop is the best option for you when it comes to buying and selling jewelry, you must still do your due diligence. So, before you visit your local pawn shops, take the following steps:
Do online research – learn as much as you can about the jewelry you are interested in buying or selling. Go online and search retail prices, completed online auctions, and trends of the cost of the precious metals in your item. This will give you an idea of how much you can expect to pay or be offered.
Do in-person research – many shops do not advertise all of their prices or pieces online, so visit retail jewelers and pawn shops to see what similar items are going for. Ask the retailer or pawnbroker what they might expect your article to go for.
Have realistic expectations – keep in mind that if you choose to buy from a retail jewelry store, you are almost guaranteed to pay more than is necessary, so don’t go in expecting to cut a deal or trade an item for it. And if you buy from a pawn shop, you may not find the exact custom piece you were hoping for but will get a great deal. If you are selling, remember that about 50% of the item’s value is a typical amount that a pawn shop will pay.
Haggle respectfully – it is fine and expected to try and negotiate for a better price at a pawn shop. We are always willing to work with customers to find a deal that works for everyone. But, know when to back down. You can still walk away and try again another day or at another shop if something just doesn’t feel right.
Visit our Showroom in Ontario today and see firsthand why more and more people are picking Central Mega Pawn as the best choice for all their jewelry buying and selling needs. We have been serving the community for many years and are looking forward to many more.
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