Pawning and selling jewelry are two confusing terms when it comes to things like ornaments and metals. Usually pawning is considered as a synonym to selling, but there is a major difference between both.
Pawnbrokers are different from potential buyers. Since people go through a tough time deciding between pawning and selling when it comes to property, this guide will help them choose better.
What’s the Difference Between Pawning and Selling?
Selling, as the name says, is selling. That’s that.
Pawning, however, is a collateral loan. To pawn something is to use it as collateral when you’re borrowing money.
Depending on your state, you can take out a 30-day pawn loan with a 30-day grace period. Other states can offer up to 120 days.
When your item is pawned, it stays with the broker. To get the item back, you’ll have to pay an extra amount coupled with some interest otherwise, the broker will resell it.
Pawning is expensive because the interest rate crosses 200% APR. So, why is it an option?
Because if you have poor credit and are cashless, you can’t be indebted. That is when pawning kicks in.
A pawnbroker follows certain criteria such as the resale value. While the majority of the items are re-bought, a small number of items are not. This is the brokers’ shot. If your silver has a high Fineness number, then while selling silver may get you $25-$50 more, pawning can get you up to $100 more.
In pawning, unlike selling silver, you are not paid according to the market rate of an ounce. Pawning may pay low but it offers you ease and convenience.
Should You Pawn or Sell Silver?
It depends on you and your financial condition. If you’re not eligible for a traditional loan, it is better to pawn. However, for pawning you’ll have to wait 60 to 120 days, go through police interrogation to ensure that your item is not stolen, and the money is not that great in majority cases.
Selling, on the other hand, gives you more money, and it is quick. There are no extra procedures. You just straightaway sell it. Not to mention you don’t have to deal with a pawn shop trying to get their cut. A Jeweler you can trust will give you market price.
So, you decide to sell?
If there is no sentimental value and you just want some quick cash, selling is the best option you can available. It is also a great way to spring clean your jewelry box. Master Jewelers Indiana has over 20 plus years in the jewelry business and is a jeweler you can trust. Bring in your silver and gold jewelery you want to sell today.