Traditionally, people visit pawn jewellery to sell or borrow against their jewellery. The process is simple; customers bring in their unwanted jewellery and the pawnbroker offers them cash based on its second hand value. The jewellery is then stored securely by the pawnbroker and can be returned when the loan plus interest has been paid back.

Pawnbrokers have been around for thousands of years and have played an important role in the financial world. Although early Roman Catholic Church restrictions against charging interest on loans halted the growth of pawning, during the 14th and 15th centuries in Europe it became an increasingly popular way to obtain short-term credit. Prominent families like England’s Lombards and the Medicis of Florence became known as powerful money-lending houses.

Pawn Jewellery: Understanding the Process

Jewelry is typically valued by a pawn shop at between 25% and 60% of its actual resale value. This is because a pawn shop is only interested in the pure metals, such as gold and silver, as well as precious stones such as diamonds. For this reason, before you decide to pawn your jewelry it is wise to take it to an appraiser or jeweler to get a better idea of its value.

When it comes to pawning jewelry, the first step is to find a reliable and trustworthy pawnshop with a good reputation in your area. Often, this will mean researching several local pawn shops and comparing their prices to see which one is offering the most competitive price for your items. This is particularly important as a majority of pawnshops charge high operating costs, which reduce the amount of money they are able to pay for your items.