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How Pawn Shops Ascertain an Item’s Value?

10 Best Items to Sell to Pawn Shops for Quick Cash | March 2020 | PawnGuru  Blog

We all go through rough times. With the current economic situation, everyone is experiencing financial hardship in one way or another. This is the reason why pawn shops have become more popular in recent months. They offer a way to access cash loans without having to go through credit checks or having to prove that you are employed, you earn a salary and by extension – you can pay your loan back with interest on time (which is what most short term loan institutions payday loans require.)

With pawn shops, you simply need to look at the valuable things you have in your home and find a pawnbroker that will give you a good price for whatever you want to pawn.  A pawn shopcan offer urgent cash with no hassles. You don’t have to lose your valuable item if you are not ready to part with it. You can go back for it when your loan is paid off with interest and on time.

How do pawnshops ascertain the value of your gold?

Gold jewellery is very popular with pawnbrokers. This is because jewellery is easier to resell. Why does this matter to a pawnbroker? He or she has to take into consideration that you might not be able to honor your loan agreement, so he needs to know how easy it would be to sell the item for a profit if you fail to pay your loan back. But how do pawnbrokers ascertain the value of your items?  

With precious metals, ascertaining their worth is easy. You can even do it yourself at home before you go to a pawn shop. Pawnbrokers look at the spot price of gold and base their calculations on the quality of gold you are selling (karats). It’s a quick process, unless if you have an unusual piece of jewellery or a vintage piece of jewellery. They may use resources like eBay to get a sense of what similar objects are being auctioned for or they will call an expert appraiser.

They may be offering a loan, but they will treat it as if you are selling the object and in consideration that you might default on your loan or never return to redeem your valuables. This happens a lot and it is a major inconvenience to pawnbrokers because they are running a business and need to make a profit. The ideal situation is to have an item that is in such great demand it would be easy for them to sell and recoup their money and make some profit in the process.

Get a hassle-free loan from a pawnshop

Pawnbrokers are aware that most of the customers that come through their doors are looking for quick cash for their items. They may come in with a different conviction of what their item is worth only to find out that the value a pawnbroker offers falls short of those expectations.  Pawnbrokers have to factor in the likelihood that customers might not return for their ‘precious’ goods which is why, it would seem like pawnbrokers offer less money for gold jewellery than other gold buyers. You can save everyone the grief by being honest to yourself about whether the item is that important or not.  Don’t create the expectations that you intend to come back for your gold jewellery when you know fully well that it is unlikely to happen; rather sell from the start. A pawnbroker might be more inclined to offer you more if you are ready to part with the item and just want to sell it.

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