Tips for Pawning Your Jewellery
Recently, the phenomena of pawning your personal belongings to get cash fast have become more popular due in part to television shows like History Channel’s Pawn Stars. However, we often see customers sell family antiques or even items they bought at a rummage sale for a profit but how often do we see actual pawning?
How Does Pawning Work?
Actual pawning involves short-term loans. Typically, you’d bring in your item, for example a bracelet, and the pawnbroker makes you an offer and you negotiate a price you are both satisfied with. You’ll leave with some cash, but if you want to actually get your item back, you must repay the loan with the agreed time period. If you default, the item now belongs to the shop and they can legally resell it. In order to avoid that, you’ll want to learn what kinds of questions to ask what kind of questions to avoid, and where to find the leading pawn shops in Melbourne.
- Ask how long the shop has been in business. If the shop is reputable, has been located at the same place for several years, and has been recommended by others in the community, there’s a good chance it won’t randomly close in the middle of the night.
- Inquire where the shop keeps their pawned items. Check that items like jewellery are carefully wrapped and stored in a separate room. Check that the shop has insurance in case it every gets broken in to, that you would be repaid the value of the item if it was stolen. Reputable shops have insurance clauses.
- Find out how much your gold and diamond bracelet is worth ahead of time so that you have a fair appraisal in your mind. Instead of asking the pawnbroker how much he would give you, let him make the first offer. This is because usually the first offer is almost never accepted and allows you some room to negotiate. Ask them if they will look at your written up appraisal. Most reputable companies are happy to as it gives a good starting point as well as offers details about the type of gold used and the total carat amount and quality of the diamonds.
- Ask upfront about fees. While you may remember to inquire about the interest rate, it’s important to check if there is a ticket fee or a storage fee. It’s also important to know what the limit you can borrow is. Some places rates start as low as 1.5 % but goes as high as 15 % depending on the amount and the length of the loan.
- Look for the leading pawn shops in Melbourne who actually list their rates for nightly, weekly and monthly loans so you’ll never be shocked later.
- Ask what kind of identification the pawn shop requires. While it does vary by location, they all require you to show your Driver’s License or valid Passport. Many also require your thumbprint. In addition, the shop must give you an itemized list of what you pawned and its value, as well as photocopies and your original documentation.
If you’re desperate for money and decide to pawn some of your belongings, take time to research the trends, making sure that gold is still hot ticket item and selling for lots of money. In addition, remember to go to a real pawn shop, as some places will buy your gold for a lot less than it’s worth.
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