February 06, 2020 - Jewelry & Luxury Items
When people talk about Pawn Shops, the idea that comes to mind is a small, shady shop that deals in lending out small amounts of money in the form of loan. The most important feature being very low requirements of credit history as pawnshops usually lend money based on collateral – which can be in the form of any item from watches to jewelry items.
However, some of you may be surprised to know that pawnshops do purchases as well. For example, if you need some extra cash and looking to sell your diamond ring you can go to a pawnshop and get some extra income by selling it to the owner – without the red tape that is.
Many would agree that selling could be a better option than pawning your item at a pawn shop. There could be many reasons for this, but some of the important ones are highlighted below:
Although many of us would believe that jewelry stores are the best place to sell diamonds, people are sometimes surprised when they get a higher price at the pawn shop for the same diamond that they were about to sell to a jewelry store.
The reason behind the effective pricing at the pawnshop is that jewelry stores will purchase your diamond in order to sell it to a walking customer. However, if the jewelry design they bought from is proving difficult to sell they may have to hold it for a certain period of time.
On the other hand, pawnshops may offer you a higher value because of the options they have of reselling that jewelry. The first option that they have is to sell it to a walk-in customer and the second being to sell it to another jewelry store. It is quite common for jewelry stores for entering in such trades with pawnshops rather than with other jewelry stores.
Now that you know the benefits of selling rather than pawning at a pawn shop, you can work on how to get the best deal out of your sale. Below are some steps that you can follow to complete your homework before you take your item to the pawnshop.
It is very important to do your own research before you enter the pawnshop.
You should have a fair idea of how much cash you currently need. This helps you identify the assets that you wish to sell if you have more than one diamond jewelry that you wish to sell. The best bet would be to earn the maximum value from the items you do not need anymore and save the ones that you will need for future use.
Once you have done your homework you are in a good shape to negotiate the right price for your asset. You should appear confident in your product and have a strong pitch in order to sell it to the pawnshop owner. You should convince the pawnshop owner about the demand and resale value of your item as that is the main concern that they would have while buying it from you.
Many suggest that ‘Diamonds are a woman’s best friend’. However, sometimes it is all about how much cash it can generate. The article above highlights few important steps in gaining maximum value while selling your diamond at a pawnshop. If you have done your homework right and prepared a good pitch you might be surprised as to how much you can earn from selling your diamond at a pawn shop.
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
June 1, 2018, 7:32 PM
Thanks for pointing out that you should know how much cash you need and determine what you want to sell if you have multiple pieces. I need a bit of extra cash to do some repairs on my car, and the only thing I have of value is my diamond ring. Selling is an option, but I think that I’ll find somewhere that I could get a loan for it from.
September 7, 2018, 3:12 AM
I like your advice to visit several jewelry stores to check the current prices and trends in the market so you can determine how much your diamond is worth. When doing this, you might want to see if you can ask questions, especially about the diamond jewelry you want to sell. You could also ask their advice to see if they know any reliable pawn shops or other buyers so you can find one with a good reputation.
October 8, 2018, 5:00 PM
I like how you mentioned that by selling your jewelry to a pawn shop, you have the possibility of being pleasantly surprised by the price you receive for the piece. I think it’s so beneficial to go to the place that will pay the most for your jewelry, so you can get what you deserve. My friend is looking to sell her used jewelry, but she isn’t sure where to go. After reading this, I’ll have to recommend that she look for a pawn shop in her area that will be willing to give her the true value of her used jewelry, that she can get the most out of her sale.
February 11, 2019, 11:31 PM
I thought it was interesting how the article said to check for a pawn shop that suits your needs the best. My wife has a couple of diamond earrings that she been thinking about pawning so that we can have some extra spending money for our anniversary. It would be great if we can find a place that primarily deals with jewelry.
August 12, 2019, 3:49 PM
You make a good point when you mention how pawn shops might purchase your diamonds for a higher price since they have more options when it comes to reselling it. My wife is interested in selling her grandmother’s old bracelet, but the design is very unique and might not be accepted by a jewelry store. I think it would be a good idea for us to visit a pawn shop to see if we can sell it for a reasonable price.
January 8, 2020, 7:38 PM
It was really helpful when you said that you should read reviews before going to a pawnshop. I have a jewelry box filled with old diamond jewelry that I haven’t worn for years, and I was thinking about selling it to a pawn shop so that my husband and I could have some extra money for emergencies. I’ll make sure to keep these tips in mind as I search for a good pawn shop!