The inventory you see on a pawnbroker’s shelves is inventory they have purchased from customers just like you or from other sources. While many people believe the items in a pawn shop come from people who were unable to repay their loans, this occurrence is actually fairly rare.
When a pawnbroker buys gold, diamond jewelry or other items from customers those items then become inventory for their customer base. Sellers are required to provide certain information and verify their identity to ensure the goods are not stolen. Once this process is complete, the negotiations begin. The pawnbroker is looking to offer the seller a fair price but to leave enough room to sell the item in the pawn shop for a profit.
Some pawnbrokers also have other connections for merchandise that allow them to pass deep discounts on to you. Pawnbrokers are often able to purchase wholesale diamonds giving them the ability to sell unique diamond jewelry to their customers for far less than retail stores will. They also purchase estate jewelry giving you the opportunity to buy unique heirloom jewelry that will continue to grow in value. When you shop at a pawnshop you are reaping the benefits of this unique system of offering high quality merchandise to customers for less than other retailers in similar markets.