February 23, 2020 - Jewelry & Luxury Items
The pawn shop industry has a market value of $6 billion dollars. It’s a highly profitable business for both the pawnbroker and seller. If you know what you’re doing, that is.
Rings and other jewelry are among the most frequently pawned items, and pawn shops are always looking to buy them. But that doesn’t mean you’ll necessarily the best deal. It’s a dog-eat-dog world out there, and you need to be looking out for your best interest.
If you’re planning on pawning a ring in San Jose, here’s everything you need to know.
The best way to make sure you get the best deal when pawning a ring is to make sure you know the actual resale value of your ring. Rings are among the best items to pawn, but you have to do your homework.
If it’s a gold ring, you should know the purity of the ring. 24-karat gold is the purest gold but is too malleable to be formed into jewelry. Your ring is likely going to 12,14, or 16 karat gold, meaning it’s bee mixed with other metals to give it rigidity.
Oftentimes, the purity of the gold is stamped on the underside of the ring. If it doesn’t have a marking you can use an at-home gold test kit to determine its purity.
If you have diamonds or other jewels on your ring, you will also want to determine the size and clarity of your gems. If your diamonds are scratched, chipped, or foggy, the value of your ring will go down.
Because this stuff can get confusing, you’re probably best off going to a professional jewelry appraiser to determine the value of the ring.
When you buy something, chances are you check multiple stores for the same product before deciding to make a purchase. Well, you should do the same, but in reverse, when selling something.
Pawnbrokers can be shifty, and they’re only looking out for their own profits so you need to weigh their offers against each other.
If someone offers to buy your ring for $500 and someone else offers $1000, you’ll be able to determine the true value of your ring and have the two pawnbrokers compete with each other.
For example, you could go back to the broker with the lower deal you and tell them about your offers elsewhere in the hopes that he’ll make an offer larger than $1000. You can rinse and repeat this process until you find the best price.
According to Yelp, there are 25 pawn shops in San Jose, so you can really test the market when pawning your ring.
Getting the best value when pawning a ring just requires time and patience. If you rush the process, only your wallet will suffer in the end. This is true, at least if you go the traditional route.
But there are other ways. Our pawn service allows you to get multiple offers from pawn shops in San Jose with the click of a mouse so you don’t have to go through that time-consuming back-and-forth between multiple pawn shops.
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.More Articles