There’s no question that the price of common goods has increased across the nation in the last couple of years. The price of basic items like milk and bread has skyrocketed. Gas prices alone have doubled in the last two years.
From 2021-2022 the inflation rate was 8.7%, the highest the United States has seen since 1981. Wages have not kept up with the price of goods. This in turn has led to a spending crisis among the middle and lower class in the United States.
Consequently, pawn shops are seeing an uptick in business because of this crisis. You can utilize a pawn shop to help make ends meet when finances are temporarily tight.
By the time you finish reading this article, you will understand how pawning items can help you find the extra money you need during inflation.
What Is a Pawn Shop?
A pawn shop is a business that will give individuals fast loans for items the customers pledge as collateral. You can bring your property into a pawn shop, and the lender will give you a loan while they hold onto your property until you can pay it back.
You can acquire a pawn loan on just about everything from electronics to jewelry. When you seek a pawn loan, the transaction stays off your credit report, and thus you have no credit consequence.
When you make a transaction with the pawn broker, you and the broker will have a stated agreement on how much time you have to pay back your loan. If you do not pay the loan back in that stated amount of time, the pawn broker can then sell your property to retail customers at the value price of the property.
Laws Governing Pawn Brokers
Pawn shops and pawn brokers run legitimate businesses. They offer a service to individuals who need cash immediately or who have poor credit and thus fewer loan options. There are also laws in place that protect both the lender and the borrower in financial institutions, including pawn shops.
- Truth-in-Lending Act
- USA Patriot Act
- IRS regulations require the broker to report cash transactions
- Bank Secrecy Act
- Trading with the Enemy Act
- Privacy provisions per the Gramm-Leach-Bliley Financial Services Modernization Act
How to Pawn Items Efficiently
If you want to make the most of pawning your property, you need to do some work upfront. Do not expect to receive the maximum amount you can get by just walking into any pawn shop and asking for a random dollar amount.
Here are some basic steps on how to efficiently pawn your items.
Research Property Value
To get the most money for your property, you need proof of authenticity as well as property in excellent condition. So research what your property is worth, and then improve its condition so you can ask for premium prices for it.
Do some research at pawn shops in the area as well. See how much they have similar items priced at before you take your items in.
Be Realistic
A reputable pawn broker will work with you to give you a fair cash value for your property. They won’t, however, undersell themselves. Don’t walk in with the belief you can trick the pawn broker into giving you more than what the property is worth.
Also, know that pawn brokers will also not pay you as much for a damaged piece. Bring in rare items that are in excellent condition if you want a good price for your items.
Bring Your Paperwork
A quality pawn shop will want proof of authenticity when you ring in jewelry or other valuable items. So bring in your GIA certificate if you are selling loose diamonds or diamond jewelry. You will also need certificates of authenticity from companies like Omega or Rolex if selling products with hose names on them.
You will also need to bring your driver’s license with you or your passport.
Tell the Truth
If you want to have repeated business with the same reputable pawn shop, tell the truth about your items. Ultimately, the pawn shop owner will find out the truth if you do lie, and then they won’t want to do business with you in the future.
Honesty is always the best policy, especially when pawning items.
Items to Sell at a Pawnshop
While a pawn shop will accept just about any type of property, some items sell better at a pawnshop. Here’s a general list of the items that pawn shops like the best.
Gold Jewelry and Gold
If you have proof that your gold jewelry or gold pieces or real, pawn shops will buy your property. Paper verification will ensure that you receive a high price for your property, especially if you go to a reputable pawn shop.
Pocket Watches and Wrist Watches
Quality pocket and wrist watches sell especially well at pawn shops. If you have one of the following brands, you’ll have an even better chance of scoring a great loan:
- Omega
- Rolex
- Breitling
- Gucci
- Cartier
If you keep your watch in excellent shape and have the proper paperwork, you can hope for a premium price.
Musical Instruments
Most pawnshops will also purchase well-cared-for and brand-name pianos and guitars as well as other instruments. If your 12 year decides they no longer want to play the clarinet they were dying to learn a year ago, you have a buyer. Like all property, a higher quality instrument will receive a better price.
Precious Metals
You can also score a great price for precious metals. You don’t need just gold coins sitting around. Most pawn shops will take silverware, platinum jewelry, and sterling silver jewelry. The weight and quality determine the price you will receive for your precious metals and items made of precious metals.
Diamond Jewelry
Like with precious metals, pawnshops will also take diamond jewelry and loose diamonds if they’re in great condition. Diamond rings, necklaces, bracelets, brooches, pins, and even loose diamonds sell well at pawn shops. Make sure you have proper verification on paper for your diamonds or diamond jewelry.
Pawn For Life
Pawn shops have given new life to those struggling because of inflation. If you need money for gas or groceries, visit a pawn shop. You’re not alone, and a reputable pawn shop will give you a fair price for your goods.
Are you looking for a reputable pawn shop? If so, get a quote from us. We can help you out today.
