A reliable source for fast cash is a Pawn Shop near me when in a pinch. Still, how do you get your money’s worth for your jewellery? To be honest, the answer varies and depends on your collateral and needs and the value of the gold.
Pawning Compared to Selling
Okay, you have two options: making fast cash with your jewellery pawning or selling it. Still, before you visit a local pawnbroker, you need to have a game plan available to look at both these options.
Pros and cons of pawning:
The pros of pawning are to exchange your valuable precious metal as collateral for a short-term loan. The dealer keeps the item safely while you spend and save money to pay back your loan when due to retrieve your item.
Yet, if you default on paying back the money, the dealer keeps and sells your gold jewellery to make up for the money lost. The most significant benefit is it does not affect your credit score, and you will not have debt collectors on your doorstep the whole time.
Another benefit is that you get a fast loan without completing hundreds of forms or having your credit record checked. Still, if you want your item back, you have stricter payment schedules as your pawn ticket states the date and is generally within 30-days.
If you do not have the money, you can talk to the dealer to extend it another 30-days, and you will pay additional interest fees. The fees can vary between 5% to 25% depending on the loan amount. Lastly, depending on the gold’s value, you cannot expect that you will get that amount if your items are $1000 worth.
You can expect only a percentage of the value of the actual item.
Pros and cons of selling:
A more straightforward process is to sell your scrap gold at a Pawn Shop near me. Compared to pawning gold, selling it brings in a higher cash value. Furthermore, it depends on the broker as they will determine the gold purity and weight and pay according to the gold spot price.
Yet, it also depends if they can sell the jewellery fast for a higher price tag. The best is you do not need to pay the money back with interest rates. Another benefit is taking your scrap gold to a pawnshop saves you time instead of trying to sell it online.
The biggest con with selling gold jewellery is that you cannot get it back.
So What Do You Think
Now that you know the difference between each, which one do you think will get you money faster? Unfortunately, there is no universal answer as the decision depends on you. All we can say is to consider if the item you want to pawn is something you want to keep or can you part with the gold piece for good.
Lastly, can you afford to repay the loan and if not, then selling it is a better option. It does not need to be in pristine condition when selling gold jewellery as it can be sold to be melted down and used again.