Is it better to pawn or sell jewellery?

How does pawning work?

Pawn shops, like ours, offer loans based on collateral. In this case, the collateral would be the jewellery. The pawn shop appraises the item and offers a loan based on its second-hand sale value — that is, what they could sell it for minus their markup. They then keep the item in a safe place until the loan is repaid. Once that happens, the owner can collect the item.

How can you sell your jewellery?

Selling involves transferring ownership of the jewellery to someone else in exchange for cash. Here at Cuttings we not only offer pawning services, but we will also buy jewellery. While there are now some online services, it is often favourable to visit a trusted shop in person so you can get the right advice and expertise you need and deserve.

If you are unsure whether you should pawn or sell your jewellery, here are the benefits of each to help you make your decision.

Pros of pawning

Pawning is a way to leverage your jewellery to obtain cash. Here are the benefits of this approach.

Pros

  • The number-one benefit of pawning is, of course, that you can reclaim your jewellery once you've repaid the loan.
  • It's an excellent way to obtain a loan quickly, without going through banks or creditors.

Pawning does not rely upon or impact your credit score.

Pros of selling

Selling means relinquishing ownership of your jewellery to obtain cash. Here are the benefits of selling your jewellery.

Pros

When you sell jewellery, you will usually fetch more, especially if you sell to a jeweller like us who can expertly appraise your item.
You will not have to pay any interest on the money you receive. 

Only take your jewellery to the pawn shop if:

  • You're confident you can repay the loan fully and on time
  • You're prepared to pay interest on the loan
  • You're not willing or able to obtain a loan based on your credit

When pawning your jewellery, keep the following in mind:

  • You must know the approximate value of your jewellery. The best way to do this is to call us up or visit us in person and one of our experts can help you. Alternatively, you can visit our blog on karats of gold here. 
  • When selling multiple gold pieces with different karats, always have them appraised separately because some buyers will weigh them together and base their offer on the lowest-karat piece. 

Still unsure? We can help.

When selling or pawning your jewellery it’s important to ensure that the broker or buyer is trustworthy so that you get the right value for your pieces.

Here at Cuttings, we are a family run business who have been in the industry for over 50 years. We uphold strict values of always offering great customer service and so you get the best value and quality. 

To get in touch with us, please contact us here.

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