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Going through Pawnshops versus Banks to Secure Loans

Posted on January 27, 2012 by admin

Did you know that pawnshops give loans just like banks? Pawnshops don’t just buy and sell used items in good condition, they also give collateral loans to people who need quick cash in exchange for something of value that can be resold to recoup the value of the loan amount in the event that the loan is not paid back.

Although they are not financial institutions, a pawnshop’s main purpose is to provide people with loans. Since about 20% of pawnshop loans are not repaid within the specified timeframe, the pawnbroker is forced to sell the items put up as collateral in order to get his money back, turning his business into a shop selling used items of value in addition to a place to secure a loan.

Securing a Loan from a Bank

The main difference between banks and pawnbrokers when it comes to securing loans is the amount of money usually obtained. Banks give loans of all amounts, but operate more in high-dollar loans used to buy big ticket items such as homes, cars, and a college education. When a person approaches a bank for a loan of any amount, they are required to apply for that loan through a long, laborious application process that can require different levels of paperwork, depending on the amount of the loan.

Bank loans are not without collateral either. Loans under a certain amount, anywhere from $5,000 to $10,000 or more can be secured with either a down payment or a form of collateral worth more than the loan amount itself.

When loans are secured in larger amounts, such as for a car or mortgage, the borrower is typically asked to secure the loan in one or more ways. A borrower should be prepared to make a down payment in cash around 20% of the total loan amount. For very large loans such as mortgages, mortgage insurance is also required to help protect both the borrower and the bank in the event that the loan is defaulted on.

During the loan application process, banks are concerned with giving out loans that are low-risk to them, so they take certain measures to make sure the borrower is likely to repay the loan. That’s why credit plays a big part in securing bank loans, and borrowers are also required to provide employment and income information, as well as other information such as income to debt ratio. Defaulting on a bank loan can be catastrophic for one’s credit.

Securing a Loan from a Pawnbroker

Pawnbrokers are willing to give higher risk loans to borrowers about whom they know very little because the loan amounts are typically smaller than those given by a bank, and the amount of collateral expected to be put up by the borrower is much greater in comparison to the loan amount. (Loan amounts with typical pawnshops average around only $100, but Jewelry2Cash is able to provide much larger loans—$2,500 and up—because we have better knowledge of the worth of your items than other pawnbrokers.) The loan period is also shorter than a bank loan and may be expected to be repaid in full within a short timeframe such as one to four months.

Pawnbrokers also collect interest much like a bank does for a loan. Interest rates vary depending on the pawnbroker, but some pawnbrokers charge high rates due to the risk involved. Not the case with us—we charge about 4-6 percent. Again, we are a little different than many other pawnshops. This is something you should be sure to inquire about anytime you are trying to secure a loan.

Other reasons that people may choose to secure a loan from a pawnshop instead of a bank are the ease and simplicity of the application process, the ability to get the money very quickly, and the fact that credit history is not taken into account at all. The main criteria to secure a loan from a pawnbroker are the ability to provide correct and proper identification and to secure the loan with one or more saleable items. Pawnbrokers are not concerned with employment, income level, or credit history.

Next time you are in need of a loan, be sure to weigh your options carefully, being honest with yourself about what terms you can agree to, so that you can repay the loan and not take a hit to your credit or lose a valuable item.

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Risks of Selling Your Goods at Auction Rather than at a Pawnshop

Posted on January 23, 2012 by admin

Anyone looking to sell off an item is searching for the best deal and the easiest way to do so while reaching the largest possible audience. Sometimes this means pulling out all the stops and taking unconventional measures. And with the technologically-savvy buyer today perusing the Internet during lunch, transit, or in the comfort of their home, at first glance online auctions seem to be able to garner a population of consumers. The old-fashioned auction house can also seem like a viable option, where fast-talkers and eager buyers battle it out for your goods.

Although selling your items at these auctions may seem like a winning equation, there are a few risks to take into consideration before turning to these outlets as a means by which to sell off your fare. Before looking to auction houses and online markets to liquidate your assets, take some time to review the risks of this pawning alternative.

Commissions and Fees

Keep in mind that auction houses don’t handle the sale of your goods pro bono. This method requires you leave them with a cut of the profit. After all, auctioneers and online venues don’t tender their trades for free. Standard commission rates can top 10% or more, depending on the worth of your items. Most often, the less valuable your offerings are, the higher the commission rate will be.

Insurance for your items is an additional charge tacked on to safely secure the property maintained under the auction house’s possession. That can strip another 1% off the cash that ultimately lands in your pocket. Additional costs may also accrue if the auction house uses photography to present your goods or charges storage fees and shipping and handling fees.

Wait Time

If you are looking for a quick return on your sale, prepare yourself for a possibly lengthy wait time. Chances are if you are selling off your items, you are looking to get cash in hand quickly. The auction house consignment process may work against you, as it can take weeks before you see a payout. This means that if you have a pressing monetary matter at hand, you may be left in a tight spot while you wait for your items to sell.

And if the auction house’s audience isn’t looking for your type of item during this season, you may wind up walking away completely empty-handed. Pawn shops, on the other hand, can offer you an immediate return on the investment of your time and efforts.

The speed of the transaction is on your side when dealing with a pawnshop. You can usually expect a same-day turnaround and an easy sale process. If you have something of value, you can be sure that the pawn shop will act as an immediate buyer. No need to wait for auctions, make appointments, or spend money on insured postage to send it to an unknown online buyer.

Online Issues

Online auctioning may seem to be a good choice. You can conduct them from the comfort of your own home, potentially reach a world-wide audience, and the costs incurred during the transaction are minimal. One drawback of this method that is also shared with traditional auction houses is the fact that there is no guarantee that you will obtain a buyer.

There are a great many online auctions to choose from, and the rules of sale aren’t always obvious. Aside from having to wait until a buyer comes along and never knowing exactly how much the final saleprice will be, the trickiest part is often wrapping up the transaction. Online sales open the door for refund requests, receiving your item back damaged, incorrect delivery addresses or lost mail claims, or non-payment.

If you’ve been looking for an attractive way to pare down your belongings and get a quick payout, keep in mind the risks of placing your goods in the auction arena. Unknown wait times and ultimate fetching prices can leave you in the lurch if you are in need of quick cash. Commissions, insurance, and holding fees will all take a cut of your auctioned items.

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10 Tips for What to Know Before You Pawn

Posted on January 17, 2012 by admin

If pawning wasn’t a viable source of liquidating assets, it would have gone the way of the dinosaurs years ago. But throughout history, pawning personal items has been a valid and valuable way to trade out the tangible for the tireless appeal of the green dollar bill. And it’s no secret that in today’s economy, pawn shops have been doing quite well as legitimate and upstanding long-term businesses.

If you’ve thrown a small fortune into a pawn box and you’re heading out the door to lock in a collateral loan, take a moment to read these tips to make sure that you get the most out of the pawning process.

5 Things to Know about Pawn Shops and Collateral Loans

The bad image is bogus.
Nowadays pawn shops are regulated by federal, state, and local laws. The majority of these shops are clean, well-lit, and run by proud, fair business owners.
Collateral loans can get you quick cash.
Collateral loans are based on trading something of value temporarily in exchange for money. If you repay the loan, you collect your item and go on your way. If you cannot repay the loan, the pawnbroker keeps your item—with no effect on your credit.
These loans come with interest rates.
Most loans come with certain monthly fees, and finance charges. These charges can vary from 2 to 35% or more, depending on the state. Be sure to inquire about this.
Some items are better to pawn than others.
Items of low value or those that are difficult to store will glean a less receptive response from a pawn broker. High-quality coins, jewelry, tools, and musical instruments are best received.
You will be questioned.
In order to maintain their reputation, pawnbrokers will go out of their way to ensure that you’re the true and sole owner of the items. Be prepared to show proof of identity and don’t be offended. Many of these questions are required by law and are implemented for your security.

5 Things to Ask Your Pawn Broker

Just need some payday relief? Ask about the monthly interest rate and the fees before making a temporary trade.
Pawn shops will often hold your items in exchange for cash until a time at which you can recoup your belongings. But check the fine print before you make the trade. Some shops charge a fee on top of the interest rate. Ask about ticket fees, storage fees, or holding fees before turning over your bounty. A close review of the pawn shop contract and regulations can help you get your stuff back without taking a hard financial hit. Also be sure to keep your ticket in a safe place, or you may be facing lost ticket charges.
Deal with reputable shop owners.
Before doing business with a pawn shop, check how long they have been in business, and if possible—find a referral. If you deal with the wrong pawn broker, you may end up spending way more than is fair to retrieve your items, or you may have to let them go altogether. The Better Business Bureau is always a great place to start when checking the reputation of any business.
Don’t take out more than you legitimately need.
Taking out more than you need can result in additional interest costs, or make it harder to retrieve your item later if you’ve spent that extra cash. Make sure you know how much money you need, and don’t take out more just because you can, or you may be tempted to spend it unnecessarily.
Know where your items are stored and how they are covered.
It is your right to fully understand how your items will be cared for once they are out of your hands. If you are pawning something large like a car, make sure that it is adequately stored and protected from theft and environmental elements. Insurance is also an important part of the collateral loan transaction. Make sure your pawn broker has insurance to protect against theft, and also that they require adequate identification while setting up the loan. Every transaction should come with a request for proof of identification, and also send you away with copies of the insurance statement, policy, fees, and any signed documents.
Know the loan time limitations.
You cannot take out a collateral loan indefinitely. Every state or pawn shop has a limit on just how long you can keep that loan before paying it back and reclaiming your items. Make sure you know the limitations so you don’t end up forfeiting your collateral.

Collateral loans are a great way to get some wiggle room or pay upcoming or outstanding bills. Search for a reputable pawn broker that has good business practices. And as with any loan, practice good sense and reason to ensure that you can repay your loan on time.

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A Brief History of Pawnshops

Posted on January 13, 2012 by admin

Pawnshops and the art and business of pawnbroking have a long history that dates back over 3,000 years to both the ancient Chinese and the Roman Empires. The Romans are largely responsible for spreading pawnshops around Europe as they conquered these areas and countries. As Europeans colonized the New World, the practice of pawnbroking went with them.

A pawnbroker traditionally gives loans in exchange for goods that can be sold to recoup the loan money in the event that the borrower defaults on the loan. The same is true of the present day. Collateral loans allow people to get needed cash in exchange of a temporary holding of their valuable(s), without having to go through a bank or other lending institution.

Modern pawnshops pay cash for goods they can resell for a profit, in addition to giving loans in exchange for saleable goods as collateral. Items commonly bought and sold at pawn shops include precious metals such as gold, silver, and platinum; diamonds and other gemstones; jewelry containing precious metals and gemstones; firearms, guns, and pistols; musical instruments and art; and electronics.

Early Examples of the Practice of Pawning

In 1338, King Edward III of England pawned the royal jewels to help fund the ongoing war with France. In 1415, King Henry V followed suit, also to help secure money for war with France. In the late 1400s, Queen Isabella of Spain pawned her jewelry in order to send Columbus on his voyage in search of a passage to India.

Starting in the mid-1400s in Italy, the pawn system was used to help commoners obtain no-interest loans by asking them to put items down as collateral and then make donations to the church in lieu of interest. This practice quickly spread to other parts of Europe. By the 1700s, pawnbroking had been spread to North and South America by the Spanish and to the present-day United States and Canada by the English and French.

Pawnbroking has also been commonly practiced in China, Japan, India, and Thailand over the last three millennia. Today in Asia, banks and other lending institutions secure loans with collateral just like a pawn shop, in addition to traditional pawnbrokers.

Modern Pawnbroking and Pawn Shops

The modern pawnshop serves a number of roles. It’s still a way for people to get a quick loan without going through a bank, especially for those with a less-than-perfect credit rating that may not qualify otherwise. It’s also a way for people to get used goods in decent condition for a good price. Finally, people can sell items much like a consignment store, although sometimes the pawnbroker will purchase items likely to roll over outright and resell them himself.

Loans secured through a pawn shop are for fairly small amounts of money, so it’s an easy way to get some quick cash immediately if you have something of value to sell.

Pawnbrokers may take a number of measures to ensure that they are not buying and selling stolen items, as may the local police working in conjunction with pawn shops and brokers. It’s not unusual for police to regularly request lists of items purchased or secured by pawn shops to see if they match any items recently reported as stolen.

Very few items secured as collateral are suspected as being stolen items. Bringing stolen items to a pawn shop for a loan is risky because borrowers are required to show identification and provide other information such as address and telephone number to the pawnbroker, who provides the information to police. Pawnbrokers take measures to avoid accepting stolen items as loan collateral because these items can be seized by the police at the pawnbroker’s expense. Not to mention this would be bad business practice. Some people mistakenly think pawn shops have bad reputations as depicted in movies—but this isn’t the case. Pawn shop owners are just like any other typical business owner—honest, fair, and focused on providing a service to the public.

Typically, about 20% of pawnbroker loans are not repaid within the specified period and the items put up for collateral become the property of the pawnbroker. This means for the most part, individuals are able to reap the rewards of a collateral loan and pay it back to receive their items with no problem. Queen Isabella’s pawning experience certainly worked in her favor!

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How Retail and Wholesale Prices Affect the Selling Price of Your Item

Posted on December 22, 2011 by admin

When you put personal items up for sale, you should consider all the factors that will determine your asking price. There are many factors that influence the selling price of goods in the marketplace, whether you are selling something as an individual or as part of a business.

By properly researching just how this process works, you can be certain you are asking an appropriate price that still leaves you with a desirable profit. Becoming knowledgeable about the economics of successful sales practices will help you gain confidence and obtain fair compensation for the sale of your goods.

Retail

Retail price is the price at which products are sold by retailers to customers. However, in order for a retailer to make a profit on such items, it is necessary to set a mark-up percentage on the products they offer. Mark-ups are the difference between the wholesale unit price that the retailer purchases the item in bulk for and the retail price it then sells for.

Often, the retailer will sell particular goods for approximately twice the amount they were originally purchased for. This increase allows room for the price to be lowered if discounts or sales are implemented. Overhead costs are also factored into final consumer costs when it comes to determining the seller’s retail price. In addition, retailers have to be able to generate enough in sales to cover the costs of utilities and wages as well. This is why online websites, with a much lower overhead than stores, are often able to offer better deals to customers.

List

List price, which is the manufacturer’s suggested retail price, is another important factor determining the selling price of an item. A common term for list price in the retail industry is manufacturer’s suggested retail price or MSRP. This price is determined by the manufacturer as a guideline for the retail selling price.

MSRP is often the highest price you will see for the selling of a particular item, but most retailers are likely to sell below this price in order to be competitive and draw in more customers. With profits in mind, retail prices and MSRP are often much higher than required to retain a fair profit by the seller. This allows for sales that seem appealing but actually just reflect reductions down from the high mark up, including blowouts and liquidation sales.

Wholesale

Wholesale distribution is also an important component of retail business. Wholesale distributors act as middlemen between certain manufacturers and those retailers who choose to sell their items. Sometimes, distribution is handled among various branches of the manufacturing companies themselves. Other times, private distributors play a role in determining what products are most likely to be purchased at certain business locations. Wholesale outlets, such as warehouse clubs, act as wholesale distributors that run their own retail operations selling items in bulk for cheaper costs per item.

To be successful in wholesale distribution, it is crucial to buy quality products for inexpensive prices that are in high demand. Financial stability is made possible by continuously having large amounts of these items in stock. In order to make a profit, wholesalers must sell their goods to retailers at a slightly higher price.

Because wholesalers usually have only so much space to store inventory, they rely heavily on the continuous movement of goods from manufacturer to retailer. Wholesale distributors are often accountable for goods including office supplies, groceries, and furniture. They must always be aware of products that have a temporary shelf life and therefore must be moved as quickly as possible. Because wholesale distributors ship their products from manufacturers to retailers, they tend to be hurt by rises in fuel and transportation costs, especially in times of economic downturn. As a result, prices passed on the consumer will naturally increase.

Wholesale vs. retail

Selling wholesale depends on stock and bulk as opposed to the convenience of retail shopping. Since wholesalers have merchandise ready to ship when orders are placed, they play a crucial role in the market flow of buying and selling goods. Wholesalers also have the ability to create jobs for others in the process of their work and are able to sell directly to consumers when item demand is soft. Though this may seem negative to a retailer’s business, it actually helps because retail stores do not have to stock items that do not tend to move.

Because retailers have limited floor and shelf space, they cannot be expected to be fully stocked at all times. When items that are in-store are not selling and demand is low, prices will be decreased with hopes of moving these goods at a faster pace. Retailers and retail businesses pay their employees through profits generated from buying and selling their goods and services, resulting in local job creation. Since products in low demand are offered at discounted prices, the customer serves to benefit. With the rise of Internet sales supplying buyers with a wealth of goods, even better deals are now possible for consumers searching for that hard-to-find item at bargain prices.

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Weighing the Decision to Sell Your Personal Items

Posted on December 20, 2011 by admin

Selling your personal items is—well, a personal endeavor. Settling on this decision takes more than the need for some extra money to ease up the holiday rush. It also takes assessing whether the return on your sale provides more benefit than the sentimental value of your shiny goods.

There are quite a few reasons to sell jewelry. Some may want to remove reminders of a past relationship, get some quick change to cover emergencies, invest in a remodel or a new car, or want to modernize their jewelry collection.

Deciding What to Sell

Selling your personal items is about more than upending your jewelry box. Many items can be sold; more than most people may be aware of. If you’re holding a sentimental item in your hand and deciding whether to give it over to a buyer, look around to see what else may be of more monetary value than sentiment.

Bent and broken jewelry can also be sold for a profit, as it will be melted down from its current form by the buyer anyway. Bracelets, charms, class rings, coins, cuff links, dental gold, earrings, pins, pocket watches, sterling flatware, unmatched earrings, and wrist watches can all be traded in for cash.

What is Your Jewelry Worth?

Determining how much your jewelry is worth can go a long way toward helping you decide whether to sell it. First, don’t expect your appraisal to accurately gauge the market value of your jewelry. Appraisals can often overshoot or undershoot how much a buyer will be realistically willing to pay for your jewelry. To avoid this kind of confusion, make sure that you get your jewelry appraised by a company who is reliable, trustworthy, and longstanding in the community. This helps you gather an accurate appraisal before you sell.

How to Sell Your Jewelry

Honest companies will have no qualms with publishing their rates for gold, platinum and silver. Quotes should also be easy to collect so that you may compare between competitors. Be careful not to simply seal up your precious heirlooms in an envelope in hopes of getting the best return on your investment. Local buyers who offer the opportunity to meet with you personally are always a safer bet.

Often a government-issued photo ID, a signature, and a thumbprint are required in order to sell your goods. Preventing theft is everyone’s responsibility, and finding a company dedicated to upholding their part in preventing theft can also help ensure you’re dealing with an upstanding organization.

If you do decide to ship your jewelry, be certain to insure the contents of your shipment when you send it away. Once received, a quote will be offered by the purchasing company. If accepted, you can often expect to receive both payment for your goods and also the reimbursement of your shipping charges.

Where to Sell Your Jewelry

Choose a company who has a solid rating with the Better Business Bureau. Checking here first can help you weed out companies who have a string of unsatisfied customers. Look for companies with a good reputation and experience trading cash for jewelry.

What if You Just Can’t Part With Your Pieces?

Luckily, there are other options if you don’t want to let go of your jewelry forever. Collateral loans are a great way to benefit from your jewelry without having to hand it over altogether. Loans can be financed on precious metal and jewelry with low rates and immediate payment. Choosing this option may help just enough to get you out of a tight spot or hand you over that extra spending money without any long-term effects to your possessions.

Short-term cash loans can be accessed by using jewelry and precious metals as collateral while risking nothing but a bit of interest over the life of the loan. Loans do not expire without written notification, so you won’t accidentally lose your collateral. A collateral loan can offer you the liquidation without the long-term risk of handing over pieces that you may regret giving up in the future.

Most importantly, deciding whether to part with your jewelry is a very personal decision. Deciding what to sell and who to sell it to can be made less stressful by knowing how to research your potential buyer, what you can rightfully sell for a profit, and how to negotiate for cash without giving up all of your jewelry in order to receive some additional funds.

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Getting Through the Holidays: Benefits of a Collateral Loan Through a Pawnbroker

Posted on December 15, 2011 by admin

All right folks, you know the deal. It’s that time of year again, and you know if you don’t come through with yuletide cheer (a.k.a. gifts under the tree) then your little ones will stop believing in the magic you promised them.

But the financial system is faltering. Banks are going under, students come out of school with astronomical debt, and interest rates are forcing homeowners out of the houses they’ve owned for generations.

It’s harder than ever to come across some extra money. Or is it?

We all have old broken wristwatches or those tacky gold earrings from our parents’ day going to waste in the back of a sock drawer. It’s so easy to put them to use again, and not by drawing the ire of our neighbors by wearing them out in broad daylight.
Instead, grab those old earrings, watches, rings, cufflinks, chains, pearls, lockets, or any other piece of jewelry and make them worthwhile again.

A collateral loan is the ideal way to put some money in your pocket while clearing out some space in that sock drawer.

The idea is simple, and the benefits are many:

Your old jewelry is the collateral. We provide the loan—$2,500 and (infinitely) up—and you provide the jewelry. It makes “cents.”
You get a payment right away. You don’t have to wait for any paperwork to go through, you don’t have to give your Social Security number or submit to a credit check, you don’t have to wait for a check to arrive in the mail. You simply get what you need to get you through the holiday season, and to put a smile on the faces of your youngsters.
There is no penalty if you can’t repay the loan. Hey!—this is a big deal. If you can’t repay the loan, or if you just decide you’re better off with the cash-in-hand instead, there’s no punishment whatsoever. Credit agencies never find out, nor do officers come knocking at your door. You simply forfeit the jewelry you left as collateral. It’s called non-recourse debt, and it could be a holiday-saver.
Of course, you might want those heirloom rings back. With us, you’ll probably get in the range of a 4- to 6-percent monthly interest rate. That way, you’re able to manage the payments with your income and not have to lose your precious goods to shifty pawnbrokers. On top of that, the loan term is only four months, so you’re not paying off this Christmas for the next 20 years.
A collateral loan through a pawnbroker is an ideal short-term solution. Especially when that pawnbroker is licensed and bonded, and stores your valuables in appropriately-rated safes. Trust us, your grandfather’s pocket watch won’t just walk away.
Have other valuables but not necessarily jewelry? No problem. There are many items that qualify for a collateral loan—vehicles, fine art, and other collectibles also work.

So there you have it. There are so many reasons people need collateral loans and each is as valid as the next.

Students (facing that astronomical debt I mentioned earlier) find benefits in these collateral loans to pay for books, holiday travel, or any of the million things students need these days. Plus, these interest rates are lower than the ones you’re getting from national loan banks.

Not surprisingly, people rack up extra medical bills during this season, usually from vehicular accidents stemming from inclimate weather or mishaps around the home. These bills aren’t cheap, and they aren’t going to go away. Many people can avoid the calls of the debt collector by utilizing collateral loans.

But sometimes people just find themselves in a hole. Millions across the nation are temporarily struggling in our tough economic times and just need to stay afloat during the holidays. Some are even doing OK and just want to go that extra mile for their family.

Whichever group you find yourself in, a collateral loan from a pawnbroker could be the help you’re looking for. While the holidays are a time of cheer and togetherness and we try our best not to put too much emphasis on material items, there’s an undeniable joy from being able to see your loved ones’ faces light up on Christmas morning.

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What to Expect When you are Selling your Gold/Jewelry for the First Time

Posted on December 13, 2011 by admin

The economy has seen some rough times in the past few years, leaving many jobless or just barely keeping their heads above the water.

In such dire times, many people turn to selling their valuables, from collectibles to antiques to everyday furniture. The most common and often most lucrative of these items are gold and jewelry.

Scrap Gold Buyers

Perhaps the best method of selling your gold and jewelry is directly to buyers. These companies specifically buy gold, silver, diamonds, and antique jewelry from clients. The gold, silver, and other precious metals are usually melted down into scrap, which can then be reused into other pieces of jewelry, coins, or bullion. Diamonds are often just polished and sold or inserted into jewelry.

There are a few advantages to scrap gold buyers.

Secondly, gold buyers will generally give you an amount close to gold’s going price on the market. This is almost always more than you will receive selling your jewelry to retail.
Selling to gold buyers is much easier than other methods, requiring very little legwork from you. After finding the right company to sell your items to, the buyers will send you an envelope with detailed instructions on how to send your merchandise. Most companies reimburse your shipping fees. Once the gold buyers receive your gold or jewelry, they can accurately price it through the appraisal process. From there, you can either accept the offer or deny it. If you accept the offer, the buyers will send you the money. If you reject the offer, they will return your merchandise (paying for the shipping) with no questions asked.

First time gold sellers should expect quite a bit of money and usually great service if they choose to sell to scrap gold buyers.

The Jeweler

Many people will initially consider selling to a local jeweler. While this might be convenient for you, you can’t expect much money from this option. No jeweler will buy a piece of jewelry back for retail price. That’s just how businesses go. If a jeweler bought all the jewelry presented to him at retail price, he would easily go out of business.

Consider how most jewelers obtain their merchandise. They get their jewels, stones, and other items from suppliers, but the jeweler has no obligation to sell them. After so many days, if the jeweler hasn’t sold something, he can return that something to the supplier. The jeweler doesn’t have the same option when it comes to buying from you. If you sell your old engagement ring, the jeweler is obligated to sell that ring (and quickly) or risk losing money on the deal.

If you really have no other options, you can try to sell your gold or jewelry directly to a jeweler. Just a tip: the jeweler will pay better for an item that is a guaranteed sell. Diamonds with a common round cut will sell better than those with rare or irregular cuts.

However, know that, when it comes to diamond rings, the jewelers are more interested in the stone than the ring. The ring is usually sold for scrap, so if you want to sell any precious metals, it’s a better idea to just sell to the scrap buyer.

Collectors and Online Buyers

Of all the options, this is probably the most inconvenient and risky for the average seller. Online buyers are usually collectors looking for a specific item or set of items. They are willing to pay hefty amount for those single items. Everything else is essentially meaningless for them.

Consider the work you yourself have to do. You have to find the buyer, hash out a deal, and either find a place to meet or ship your item through post. With the high risk of scam and low chance of lucrative offers, selling online should be your last resort.

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Items Most Frequently Brought Into Our Office

Posted on December 8, 2011 by admin

The country’s economy is the last thing anyone is willing to brag about. High unemployment, a federal deficit that seems impossible to reduce, and a depressed housing market are just a few of the problems currently plaguing our nation. It’s no wonder that so many people are up in arms.

However, there is still hope, and with that hope, many people have turned to selling their jewelry, antiques, and precious metals for spending money. Here are just a handful of the items most frequently brought into our office that you might consider having appraised and selling.

Gold and Silver Coins

In most cases, precious metals—gold, silver, and even platinum—are melted down for scrap. The scrap is then reused in bullion, coinage, or pieces of jewelry.

However, gold and silver coins are different. While they do have a monetary value based on the metal they are made from, they also have numismatic value, which measures the worth of a coin based on the fact that it is a coin. The numismatic value is based on the coin’s age, rarity, and overall condition.

The easiest way to find the value of these coins is to visit the professionals, like us. While some people like to hold onto coins as collector’s items, others find that they’re more valuable to cash in to pay for other things.

Diamond Engagement Rings

Many people fall in love, get engaged, have a wedding, have a family, and live their lives, but sometimes, things just don’t work out. As much as you love a person, it’s possible that marriage just wasn’t meant to be, leading to divorce, which is fine. Life has a way of going on.

When things don’t work out, you are still left with the engagement ring. Lots of people enjoy owning and wearing their jewelry, but having that ring around is just a constant reminder of how things used to be, a relationship that used to be. There’s no reason to wear it anymore, much less have it in your possession.

Instead of throwing the ring away or destroying it—a potentially difficult task anyway—you may consider selling it. For the most part, the stone(s) is the most valuable part of the ring, but the gold or other metal used is also valuable. It’s best to appraise your ring to determine the amount you can expect to receive after selling it.

Aside from the money, once you have sold your engagement ring, you can move on with your life. Use the money to do something fun in your life, leave your old relationships in the past, and maybe fall in love again.

Estate Jewelry

Estate jewelry is also a common item brought to our office. Estate jewelry refers to any piece of jewelry that was previously owned by another person and obtained from the estate of that person, usually through inheritance. Most estate jewelry is antique or vintage in nature, making it especially valuable. However, not all estate jewelry is “old” and may have been obtained from any era.

To the right buyer, estate jewelry can garner quite a bit of cash. However, to maximize the amount of money you receive, your piece needs to be in good or reparable shape. Scratches, dents, and fading should be minimal.

Collectors are the ones who will pay the most for antique jewelry, but don’t hold your breath. These collectors are looking for specific pieces and those alone, making the market pretty small. Others might purchase the jewelry for themselves or loved ones, but you shouldn’t expect high prices from these buyers. Selling your pieces to a jewelry buyer is a more lucrative option.

Rolex Watches

Time is money, and with luxury watches, that saying becomes a lot more literal. Rolex watches are probably the best known brand of luxury watches and sell for a lot.

But why are Rolex watches so expensive? Put simply, Rolex puts a lot of quality into the watches they make. The watches have an elegance that shows in the fine craftsmanship put into each watch. On top of that, Rolexes have a long history of amazing design both inside and out. Each clock is built with fine Swiss clockwork, making it durable and worth all that money—meaning when you sell a Rolex, you can cash in big time.

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Tips for Accurately Valuing Your Jewelry

Posted on December 6, 2011 by admin

Many people own some piece of precious jewelry, either locked away in some bank safe or worn proudly on their fingers. People value jewelry based on three things: money, beauty, and sentimentality. These might intersect for some or completely diverge for others.

Of course, with the economy in such bad condition, many people have turned to selling their jewelry for some extra spending money. As such, most people have become curious as about how to accurately value their gold jewelry—based on money, not sentimental value—helping them figure out if they’re getting the right amount of money for what they sell. So here are some tips for doing just that.

Karats: Good for the Eyes (and Pocketbook)

Your first step in valuing your gold jewelry is to determine the purity of the gold. To do that, look for the karat weight, which should either be stamped on the side or inside the band for rings. You may need a magnifying glass for this step.

If you are having trouble reading the karat number, you may want to ask for assistance from a jeweler or dealer. You may also buy an acid test kit to determine the gold’s purity, but it is best to go to a professional. If you can’t find a number, the piece may actually only be gold plated. A professional dealer or jeweler should be able to help you out regardless.

To determine the purity, just divide the karat weight by 24 and convert the number to a percentage. In some cases, your piece may actually have three digits. This just means the piece is probably from the UK, where purity is based on a scale that goes up to a thousand. If you find a three digit number, simply divide by a thousand to get the purity percentage.

Weight

Now that you’ve determined the piece’s purity, you can measure its weight. Weight helps to determine the base value. For this, you will need a scale that measures in grams. If you so wish, you can buy a jeweler’s scale online for less than $50. These scales are much more accurate than the average gram scale you might have at home. If all else fails, you may take your jewelry to a professional.

Weigh your items on the scale, noting the precise gram weight. While some scales have arrows pointing to gram amounts, most scales these days output the weight on a digital screen, making it much easier for you.

Once you have the weight, you must convert it to troy ounces. To do this, simply multiply the percentage purity and the weight in grams of the specific piece, and then divide that result by 31.103. Gold spot prices are based on troy ounces.

Calculating the Price

Now that you have the purity, the gram weight, and the weight of your piece in grams per troy ounce, you can calculate the value of your gold jewelry.

First, determine the spot price of gold per ounce on the market in your currency. You should not have trouble finding this. You can find it online, visit a financial news website, go to a gold price organization, or look through your daily paper.

Once you have that number, simply multiply by the troy ounces of your piece, giving you the price of your jewelry.

Using Grams

If you would rather know your price by grams, divide the price per ounce by 31.103 to get the price per gram. Then multiply that number by the karat percentage to get the price per gram of your piece of jewelry. Then multiply the price per gram by the weight in grams.

This is often the easier solution for selling bulk amount of gold scrap.

Considering the Gems

Jewelry value is not based only on the gold purity. Most pieces include gems or precious stones. If you want to figure out the value of the gold alone, you will have to find a way to remove the stones and gems. This is probably a job reserved for professionals.

Valuing gemstones takes years of training and practice. If you want to find out the value of the piece, including both gold and stones, you will have to get it appraised by a professional.

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