Often people think that pawnshops want you to lose your gold so they can sell it, but in reality they would rather you pick your gold up so they can collect their fees and interest, set by laws in your state. Pawnshops aren’t a scam. The fact is you can’t sell a 2-gram pair of 14k earrings at 24k spot price per ounce when gold goes up in value, but you sure can pawn them. Bullion and coins pay much closer to gold value when you borrow against them, since they are usually higher in purity (22k-24k) and don’t take much processing if the pawnshop needs to make their loan money back. Pawnshops make more money when you pawn your gold, not when they purchase it.
That being said, you should always expect a fair loan offer against gold’s value. Unlike electronics or cars, gold can go up in value and historically has, in comparison to the dollar’s value. The obvious advantage of pawning your gold is instant cash and keeping the gold you don’t want to part with, if you plan on coming up with the money to repay the loan of course. Pawnshops usually lend you money for 3 – 6 months, depending on the store’s policy and state rules, and you can renew your interest if you can’t pay the entire loan back at once. In California, pawnshops can charge you up to 3% interest per month for the first three months combined for example. Educate yourself, get quotes, know the terms of the loan, and shop around – but don’t sell that gold!
Know how much to get for your gold and jewelry before you pawn; use the pawn offer
Jewelry Calculator then search for pawn shop locations near you!
