An Easy Guide to Pawning Your Ring

February 20, 2020 - Jewelry & Luxury Items

Pawn My Ring

Pawning is an easy way to gain access to the short-term debt by putting a valuable item such as a ring or a smartphone as collateral. When you take your item to a pawnbroker, they use their resources to identify the actual worth of your item, i.e., its price and demand. A pawnbroker wants to offer you a loan based on the market price of your product.

You will usually get an offer that’s 40-60% of the estimated price of your item keeping a cushion for the pawnbroker in case you default. If you have a product of great value and demand, they might increase the loan amount to 70% of your item value. Pawnshops provide short-term loans usually for 30 days. In case you default on your payment, the pawnbroker has the right to keep your item and even sell it to recover the money.

What makes pawning attractive to many customers is that it does not require any credit check neither does it damage your credit history in case you default on your payment. Also, you do not need to go through a detailed set of documentation which makes the whole process relatively quick and easy.

How Pawn Shop Will Evaluate Your Ring

When you take your ring to a pawn shop, you should not expect the pawnbroker to pay you the same price as a jewelry shop would pay. Jewelry stores usually price their items based on the brand and can put a considerable amount of markup on the jewelry item.

However, pawnshops will price your ring based on what it is worth to them and what the demand of that type of ring is in the local market. While evaluating your ring – be it silver or gold – the pawnbroker would first weigh it and then check for its purity, which for a gold ring is measurable as ‘karat’ such as 14 karats or 18 karats.

If your ring contains a gemstone as well, then you can expect the pawnbroker to add the value of the stone to the total price as well. Based on the type of stone on your rings such as pure diamond, lab-made diamond or semi-precious stone, the price will appreciate accordingly.

Hence, it is very important that you do your homework and estimate your item’s worth before bringing it into a pawn shop. It will help you negotiate a good deal when trying to pawn your ring.

Steps To Follow In Pawing Your Ring Successfully

The first step is to know how much money you need. Based on the amount of money needed, you can choose the right kind of ring to pawn. It will also be helpful in the steps that follow.

  1. Find the Perfect Pawn Shop

To find the perfect pawn shop that will pay you the amount you are trying to get you can go online to Google and search for nearby pawnshops. Be sure to look for customer reviews and find out about the pawnshop’s dealing with their clients and the price offerings on jewelry items.

You should try to look for pawn shops that have a good experience in pawning different types of jewelry items and offer the best value for pawing it. The reputation of the pawnshop also carries great importance, so make sure that the pawnshop you decide on, in the end, is considered to be trustworthy.

  1. Understand Your Ring’s Actual Worth

Before taking your ring to the pawnbroker, you should try and determine the actual worth of your product in the market. Visiting jewelry stores and having them give you an estimate based on weight, purity, and type of the ring is a good way to start. You can also go online and visit websites, such as PawnGuru to see the price and demand of rings that are similar to yours.

Online Gold and Silver jewelry price calculators give you a rough idea about your items price based on the weight, type, and purity of your product.

  1. Weigh the Sentimental Value As Well

When it comes to jewelry items such as gold or silver rings, their sentimental value could be more than what they are worth. If you are going to a pawn shop to pawn your engagement ring, you should be very sure about the price you are getting for it and must have done all your homework on how you are going to pay back the loan within the agreed time.

Because if you default on the payment, you might either have to repurchase it from the pawnbroker on the agreed price or you may lose it completely if they choose to recover their loss by selling your ring.

  1. Negotiate the Best Price

Once you have done your homework, you should be in good shape to enter your selected pawn shop and place your item in front of the pawnbroker. You should be confident about the product you are pawning and should have a pitch ready for pawning it for maximum value.

The pawnbroker may value your ring based on its future price depending on how much time you have to pay off your loan. That’s because the value of precious metals such as gold or silver may change with time.

A pawnbroker will also consider how much demand is for your product in the local market. If you have done your survey at the local jewelry stores, you will have a good idea about your product’s worth and can negotiate the best value for your ring.


Pawning an item is a quick and easy way to gain some extra cash for your short-term needs. The whole process is less complicated than going to a bank and asking for a loan which requires detailed documentation, and good credit standing as well.

If you have done the research right, you should be able to negotiate a relatively high loan amount by pawning your ring.

David Stiebel

David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in 2015. He started PawnGuru to build a better tool for pawn shops and consumers to connect.

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