Are you in a pinch or looking to get extra cash on hand for the old jewelry you have in your house? Then, selling it to a pawn shop can save you considerable time and money.
Other reasons why people are seeking pawn shops to sell gold or obtain a short-term loan from them are rising gold and silver prices, home foreclosures and a recession. If you are a new customer who doesn’t know a thing about how to sell or pawn gold, here are a few tips to get the best price at a pawn shop.
How Is the Price of the Gold Determined in a Pawn Shop?
Gold is traded 24 hours a day on the open market and is priced by the ounce. Hence, the value of the gold can change at any second, and this means the cost of buying and selling gold is constantly fluctuating.
A pawnbroker will always pay less than the base price of the gold so that they can turn it around and sell it for a profit.
Sell Gold or Get a Loan
A pawn-shop owner, with a long-term view, always encourages getting a loan over the gold you have. By getting a loan over your gold, it’s evident that you’ll return for more business.
Know the Loan Terms
If you are seeking for a gold loan, the interest on loans must be paid each month, and if you miss the installments, it can get expensive. The terms for gold loan vary by state, and the interest range would be between 6% and 25% with a 30 or 90 day grace period.
Even though jewelry stores and pawn shops will pay top dollar when gold is high, shopping around for gold loans instead, help you to get the best deal. Get your gold jewelry appraised and get different quotes. Calculate the approximate worth of your gold jewelry and take this documentation to the pawnshop ahead of time.
Whether you are selling or applying for a gold loan, only sell the highest-quality jewelry to get the best offers. Most pawn shops offer up to 75 percent of market value for jewelry and other gold items.
Explain Your Current Financial Situation
While this may feel embarrassing, your bad-luck story can move a pawn broker and offer cash partly on a customer’s personal and financial situation.
The Bottom Line
If you are exchanging or selling gold jewelry, you must pay-back the loan and interest according to the provided repayment schedule to prevent forfeiting the item or incurring additional charges.
The author of this article is the leading pawn broker in Kansas City with over a decade of specialization in the industry. In this article, he provides a few useful tips to get more cash while selling gold or exchanging it for money. Visit https://solskc.com/ for more information.