Pawning jewelry is one of the ways you can get cash that you need urgently. This is a tough decision to make since jewelry may be very valuable to you. If you want to keep your jewelry then do so and look for another source of cash, or you can loan your jewelry and pay your bills as well. You don’t have to do this anymore nowadays. There is a way for you to be able to keep your jewelry and have cash to pay your bills at the same tie. You don’t have to sell your jewelry but you can get cash on it by loaning with the value of your jewelry. If you have jewelry to use as collateral for loan, then you can go to a pawnshop that offers loans on jewelry for a term of several days. If you need cash to pay your bills, then you can have help with this type of loan using your own high-end jewelry. Make sure that your jewelry is really valuable so that the jewelry will approve your loan.
There are states where they are allowed to charge up to 25% interest a month. It can be an unreasonable rate for interest if it reaches this high. If a reputable jeweler charges between 5 and 20%, then this interest rate is good enough. The value of your jewelry determines the rate. IF the loan you are seeking is a huge amount, then you should make sure that you have a jewelry with a high value and they will charge you with a lower rate. So, if you have a very expensive diamond as a collateral then its percentage rate should be lower than earrings of a much lower value.
The factors that affect the value of your loan, is the appraised value of the jewelry, its condition, and the ability of the company to sell your item. It is not the new retail prices that determines the loan amount but the wholesale or its resale value.
You also need to ask the pawnshop if they are insured and where they store the jewelry. Make sure that your jewelry is insured and secured and kept in a safe deposit box. Choose a pawnshop that is known to take good care of their client’s jewelry.
If you are going to loan jewelry, the make sure that you get a detailed appraisal report including photos of the jewelry you have loaned. It is important that they describe the jewelry properly and that get back the same jewelry that you have loaned.
Pawnshops do not just give loans to any kind of jewelry. If you are turned down on your jewelry, you should not feel offended. It is a risk for jewelers to give cash for jewelry and so they make sure that the jewelry you loan is high-end.
If you what to have a good experience in loaning your jewelry, then follow the tips given above.