How do Pawn Shops Determine Value

Some morals come at the end of a story, but this one is coming  at the beginning: If you need to sell your jewelry, consider all your options before going to a pawn shop. Why, you ask? It all comes down to how pawn shops determine value.

Pawning vs. Selling

A pawn shop offer first depends on whether you’re pawning an item or selling it. These aren’t the same thing. If you’re pawning an item, you’re essentially using it as collateral for a loan. You intend on coming back for it when you can pay that loan (plus the interest accrued) back.

Do You Get More if You Sell or Pawn?

If you choose to sell your item, you will probably get a higher offer from a pawn shop.

How do Pawn Shops Determine Value?

Most pawn shops refer to blue book market value or certain databases for the items they buy. They may also do some internet research to understand retail and wholesale prices. 

But at the end of the day, pawn shops consider a price that will justify a profitable resale value.

Do All Pawn Shops Negotiate?

Most pawn shops do negotiate for sales – but don’t expect to get more than 60% of the value of your item. Remember – their end goal is to resell your item for a profit. They don’t care about the sentimental value or history, or even the unique details that add value.

Is It Better to Pawn or Sell Jewelry?

It depends on your situation. If you want your item back, and can afford to pay back the interest, pawning may be a good option for you.

But if you need cash in a hurry, and want the highest offer, selling is the way to go. If you’re considering selling to a pawn shop, we caution you. Pawn shops buy all sorts of items. They aren’t experts in any one of the items they buy, so how can they offer you a fair deal on your jewelry?

It isn’t easy to sell your jewelry off, and when you’re selling to someone who can’t see the intricacies behind its quality, you are going to be low-balled.

When you need cash in a hurry, it’s easy to sell to the first person that gives you an offer. But you’re the seller here and you have the power—that’s why it’s so important to shop around for the best buyer.

Researching Jewelry Pawn Shops

Before selling anywhere, always arm yourself with as much knowledge as possible. Do research on the market, explore your selling outlets and really know what it is you’re selling. Get multiple independent appraisals or lab tests that can help prove your jewelry’s worth. We promise you – it’s absolutely worth your time, and you’ll thank yourself later! 

We have a lot of resources here on our blog that can help during your research phase:

• Avoid These Common Mistakes When Selling Your Jewelry
• Guide to Watch Value: How Much is my Watch Worth?
• 5 Elements Every Jewelry Appraisal Should Contain
• Diamond Value Factors
• How Much is my Jewelry Worth?
• How to Sell An Engagement Ring
• 3 Tips to Increase Jewelry Value
• Where Should I Sell My Jewelry?
• How to Sell a Diamond in 5 Steps

Sell to a Professional Jewelry Buyer

The reason is simple—certified jewelry buyers know jewelry worth. They specialize in jewelry value, have been trained in giving accurate appraisals and know the current market.

Need more convincing? We dove into this topic in another post: Why Sell Jewelry to a Certified Gemologist?

Whether you’re looking for a safe solution for quick and fast cash, or just have some extra jewelry that’s been gathering dust in your jewelry box, the professionals here at Diamond Buyers are ready to help!

You can start with a free, no-obligation appraisal of your fine jewelry, diamonds, watches, wedding and/or engagement rings.

You can walk away with more money in your account within just a few business days.