Getting the Best Deal at a Pawn Shop

Whether you’re taking out a pawn loan, looking for a good deal on a used Rolex watch or diamond jewelry, or you have something you want to sell, the key to a good pawning experience is to understand how the pawn process works.  The best thing you can do before you visit the pawn shop is prepare yourself ahead of time with all the facts you’ll need to really understand how a pawnbroker determines the value of your item.

First, you’ll want to be sure you bring a valid government issued ID. Official identification is required for many transactions at a pawn shop. Let’s say, for example, you want to take out a loan on gold. You will want to know the current price of gold and what the going rate is for gold buyers. You will also want to take into consideration your particular item. If you are loaning on a gold ingot, for example, there may not be much room to negotiate on the loan amount or selling price. However, if you have a custom designed or antique piece of jewelry, especially if it’s an important or high end brand, your piece may be worth more than just its weight in gold. Be sure to bring any official documentation, packaging, receipts, warranties, appraisals that would support the provenance of your item.

Find out what the going rate is for that item in its current condition. Remember some items retain value longer than others. The condition of the item as well as the demand for the item will also affect its value. If you are taking out a pawn loan or selling an item, be prepared to prove your items value.

Once you’ve done your research you should be ready to negotiate, but be realistic. Set a realistic bottom line in your mind.