Tips to Selling to Pawn Shops

With the rise in silver and gold prices combined with the recession, we buy gold in Los Angeles pawn shops have been doing great business. If you are looking for fast cash, selling your gold and silver to them is a great way to get that much needed money. Follow these tips to help you get the best price for your items.

Do you want to pawn or sell?

This is the first question you need to answer before you work with We buy gold in Los Angeles in pawn shop. Pawning an item means you are getting a loan from the pawn broker with that item being held as collateral. You will get more money by selling your item outright, usually 10% to 20% more. A pawn broker must hold items bought for 30 days to allow the police time to make sure the item was not stolen. Items being held as collateral for a loan are held for 60 days. Because the pawn broker must wait that additional time to make a profit, he is inclined to pay you more if you sell the item to him rather than pawning it.

Understand the loan terms

If you must pawn and not sell, it is important to understand the terms of the loan to which you are agreeing. The loan you are taking out is an interest-only loan, and the interest rate is going to vary between 6% to 25%. It is to your benefit to try to negotiate a lower interest rate so that when you come back to retrieve your jewelry, you won’t be paying so much for them.

Shop the competition

Lots of pawn shops advertise, “We Buy Gold in Los Angeles.” The question is, “How much do they pay?” When the demand for gold and silver are high, pawn shops will pay more to acquire them, but it is important to check with several different pawn shops to make sure you are being given the best offer for your items. Having your gold jewelry appraised goes a long way to improving your bargaining position as you now know the market value of your jewelry.

Sell quality jewelry

Even though a pawn shop will buy your gold jewelry which is in disrepair, you will still get much more for it if it is good re-saleable condition. Jewelry which cannot be sold because it is broken or damaged can still be smelted down and re-used by a smelter, but a pawn broker would much prefer to have high-quality jewelry that is in excellent condition to sell.

Pawn shops who treat their customers fairly by offering a decent price for their items are the “We buy gold in California” pawn shops with whom you want to work. Get in touch with Pico Union Pawnshop.

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