Can You Pawn Gold Ring (All The Facts)

You may have canceled your engagement, your marriage may have ended, or perhaps you are merely in dire financial struggles. Alternatively, things may be looking up for you, and you hope to use the money from pawning your old ring for a new and more elegant one. There are many reasons and causes as to why people may want to pawn their gold ring; however, is it possible to do so?

Pawning, either unwanted jewelry or if you are merely in a tight space financially and need some immediate cash on hand, is most certainly possible. One of the things that pawn shops will accept is gold rings; if they house diamonds, you are likely to fetch an even higher price.

The notion of pawing items for a set amount you ultimately intend to repay to claim your goods has been around for centuries. This practice dates back more than 3,000 years and was prominent in Greece, Rome, and China; these businessmen realized that they could profit by lending money to people who desperately needed it and would have insurance. But what of the modern age?

The Ins And Outs Of Pawning A Gold Ring

The pawn shop as a business model is more prevalent in certain parts of the world and particular areas. These stores tend to garner flashy, visible signage and advertisements spread across various media formats. These range from adverts in local newspapers to banners on websites. And they typically tend to be the first place many turn to when they need money.

Pawn shops are ideal for people looking to purchase second-hand goods that they feel do not warrant the price of buying out of the box—these range from television sets to musical instruments. However, from the start, we must warn you that pawn shops are not the ideal go-to for pawning or selling your golden ring or other high-end jewelry.

If you are looking to sell, which is not exactly the topic of today, but we will touch on it briefly, the issue is that pawn shops are not going to offer you anything close to the price you originally paid for the article. So from the get-go, you need to realize that you will not be offered a fair market-related value for your ring. However, that is if you are looking to sell.

There are issues with pawning your golden ring as well, and this comes in the form of high-interest rates pawn shops place on the repayment amount, and to top that off, they will value the ring at a fraction of what the item is actually worth.

However, this is not to say that pawn shops do not have their place or use, and if you are in a predicament where you need a short-term loan, they may be your only viable option. One thing you ought to embark on first is getting your jewelry appraised so that you are aware of its actual value. This will give you bargaining room with whoever you are pawning to.

The next part is to have a viable plan to know that you will be able to accumulate the money required to reclaim your gold ring. Next, you do not want to be too hasty, even if you are in a seriously concerning financial state. Instead, you want to shop around and find the pawn shop willing to offer you the best possible deal.

How Much Do You Need To Lend, And What Is Your Ring Worth?

One of the big things you need to be aware of is how much money it is that you are looking to borrow, and this will be informed by the appraisal of the ring. The thing to remember is that pawn shops are in the business purely to make money. They will likely present themselves as experts and have the demeanor of a car salesperson; do not let this fool you.

The average amount that the pawn broker will likely offer you is between 60% and 70% of the actual value of your gold ring. Therefore, try to find the best deal you can get, and also keep in mind that you need to have a strategy to repay the loan, or else you will lose out tremendously.

As we mentioned before, getting your gold ring appraised is imperative. You can easily search online and find reputable appraisers and jewelers near you. Once you know what your gold ring’s true value is, you can work out what 60% to 70% of that is and confidently approach a pawn shop with that knowledge in mind.

Thankfully for you, pawn shops are typically only interested in pure metals, such as gold (which you have) or silver, and precious gems and stones, such as diamonds. They will most likely turn down gold-plated items, and if you are hoping to get something for costume jewelry, you are significantly out of luck.

Approximating The Value Of Your Gold Ring

If it is a wedding ring, when you go to have it appraised, the jeweler (or appraiser) will clarify which precious metal it is made of. Even if your ring looks gold, it might not be because some metals possess similar visual qualities. Once you know that your ring is undoubtedly gold, you can approach pawn shops; they typically accept gold or platinum.

If you do not have the time to take your ring to an appraiser, what you can do, before approaching a pawn shop is to see if the ring’s value is stamped on it (which often it is). For example, the numbers 375 represent that the ring is a 9-carat gold ring, while 750 indicates that it is 18-carat.

Once you know the carat, the next thing you need to determine is the weight of the ring; for this, you will need a specialized scale, which you can usually pick up for as little as $10. You will require a scale that weighs in grams, as this is the form of measurement that the pawn shops will typically use. Once you know the weight, you can do an approximate evaluation according to what pawn shops offer.

Things To Consider When Pawning Your Gold Ring

We have emphasized that you need to know the actual value of your gold ring. Next up, you must be aware of what the final cost of the loan will look like. Pawn shops typically work with short-term loans, and the interest rates can be remarkably high. So make sure you are keenly aware of this and do not entirely fixate on the need to pawn your ring.

Before you agree to any offer made by the pawn shop, negotiate with the owner or employee, especially since you will have made yourself aware of the item’s true value. The pawn shop will offer you a low price straight off the bat, and they will be looking to take advantage of you and your need for a loan.

Also, ensure that there is a signed contract or document stating all the necessary information related to the exchange, and also, do not leave the shop until you have a copy of it for yourself. Lastly, check all the fine print and be sure that the terms of the loan, the repayment period, and the interest rate are clearly outlined. Finally, there should also be a clear description of the gold ring.

Conclusion

No matter which angle you approach it, pawning your gold ring is not an ideal way to gain a loan, but if you are desperate, it is something you can and may need to consider. Try to shop around, find the best possible offer, and be fastidious about the contents of the contract. Just be sure that you get your gold ring properly appraised or be aware of its value.