With the rising silver and gold prices, more and more people are wanting to pawn their gold jewellery. That’s fantastic for pawnshops. But, this may not be advantageous for people who are pawning items for the first time and don’t know how to get the most money for their gold jewellery.
Use this guide to make sure you get a great deal.
- Find valuable items to pawn.
Before you head off to a pawn shop to pawn a beloved piece of jewellery, you need some valuable gold jewellery. Make sure you check the quality of your items:
- Items stamped with “18K,” “750” and “750/100” indicate that your jeweller is 18 carat gold or platinum and you will fetch a higher price.
- Jewellery that is stamped with the letters “RPG” (rolled gold plated), “GP” (gold plated), or “HGE” (heavy gold electroplate) is almost worthless. These pieces are usually coated to make them look more valuable than they are.
- Make the jewellery look appealing by polishing it.
- Understand the terms and conditions.
The interest on loans is usually paid monthly, which means that the price you’ll be paying can increase if you fail to pay the loan back on time. Pawn shops that Melbourne people trust will offer fair loan terms and pay-back periods.
- Don’t be afraid to negotiate.
Pawnshops are happy to pay premium prices when the gold prices increase. But, chances are, you can always find a much better price when you shop around. Search online to check the value of your jewellery first, and even head to jewellery shops to get the items appraised. Once you have an estimate of its worth, you can take the estimate along to a pawnshop. If your item is of historical value or you have the original box, this will add value to the piece. Don’t forget that haggling is expected in a pawnshop, so don’t be afraid to negotiate!
- Pawn quality items.
Whether you are pawning your jewellery for a loan or a sale, pawnshops want high-quality pieces that they can sell. Jewellery tends to sell quickly, so make sure you get a good deal.
- It’s worth having a story.
While retailers may not give a second thought to a bad luck story, it can come in handy at pawnshops. Some high-end pawnshops actually determine the amount they are prepared to loan or pay out partly based on your personal circumstances or financial situation. They often look for the sentimental value of the piece of jewellery, like if the piece is a family heirloom.
Many pawnshops want to encourage repeat business, so they sometimes loan a full 100% of the value to clients who are able to show that they can repay the loan. For instance, someone who is expecting a promotion at work or is banking on a bonus being paid out soon is a lot more likely to pay back the loan than someone who has had to sell their house and will be moving away.
There are pawnshop owners who will try to remain neutral, but they often do add value for repeat clients or even to expensive pieces of jewellery if it seems like it will increase the chances of their clients returning.