Pawn is a process in which you use an item of jewelry as security for a short-term loan. A pawnbroker will evaluate your jewelry and offer you a price for it, but you will only get it back once you repay the money within a certain amount of time. If you fail to do this, the pawnbroker will sell your jewelry to make a profit.

This might seem like a good option if you need cash quickly, but it’s important to consider the alternatives before you pawn your jewelry. In fact, pawning your jewelry is often a bad idea.

Pawn Your Jewelry: Steps to Take

Depending on the item’s value, the local resale market, and other factors, you’ll typically receive only thirty to sixty percent of its estimated value when you pawn your jewelry. This may be enough to save you from a financial crisis in the short term, but it’s not ideal for those looking to make long-term investments in their jewelry collection.

The best way to ensure you’re getting a fair price for your jewelry is to take it to several local pawn shops and have them evaluate it. This will help you determine the minimum amount of jewelry you need to pawn in order to cover your immediate financial needs. You should also prioritize the pieces of jewelry you’re pawning, such as family heirlooms or engagement rings from previous relationships. This will prevent you from regretting your decision later on.