An alternative to people who need fast cash is to loan their jewelry. This is a personal decision that is very tough to make if you are someone who is fond of your jewelry. You options are to loan your jewelry so that you can pay your bills or keep you jewelry and look for another source of money. You don’t have to do this anymore nowadays. You will be able to keep your jewelry even while you are loaning it to pay your bills. You don’t have to sell your jewelry but you can get cash on it by loaning with the value of your jewelry. Cash loans are offered by jewelers with your jewelry as collateral for a certain number of days. If you have high-end jewelry, then you can use this as a collateral to loans offered by jewelers or pawn shop owners which you can then use to pay your bills. If you really want the jeweler to give you the loan, then you need to make sure that your jewelry is valuable enough.
There are some states were jewelers can charge up to 25% a month on a loan. This kind of interest is actually too high. Look for another reputable jeweler that only charges between 5 and 20%. The rate of the loan will depend greatly on the value of the jewelry. IF the loan you are seeking is a huge amount, then you should make sure that you have a jewelry with a high value and they will charge you with a lower rate. So, if you have a very expensive diamond as a collateral then its percentage rate should be lower than earrings of a much lower value.
The appraised ‘loan value’ of the collateral and its condition and the company’s ability to sell the item determines your loan value. It is not the new retail prices that determines the loan amount but the wholesale or its resale value.
Make sure that the pawnshop is insured and that you are aware where they store the jewelry. Make sure that your jewelry is insured and secured and kept in a safe deposit box. You should be assured that your jewelry will be taken good care of.
It is important to get an appraisal report from the pawnshop with all the details which includes pictures of the jewelry that was loaned. Check the description of the jewelry if it is correctly written and that you get back the same jewelry when you have repaid your loan.
Pawnshops do not just give loans to any kind of jewelry. Don’t feel offended if the pawnshop turns down your jewelry for loan. They make sure that the jewelry is high-end since loaning cash for jewelry is actually a very risky thing to do.
Following these rules in pawnshop jewelry loans will give you a good experience.