How to Pawn Jewelry

Co-authored by wikiHow Staff

Last Updated: October 8, 2020 References Approved

Pawning jewelry for money is not typically an ideal situation since pawn shops offer high interest rates and price jewelry at a fraction of its true value. However, if you need a quick loan, pawning jewelry might be your only option. By taking the time to have your jewelry appraised, shopping around for the best loan deals, and getting your loan paid back on time, you can safely get the money you need and still get your jewelry back!

Part 1

Part 1 of 3:

Determining What Jewelry to Pawn

1
Figure out how much money you need to borrow. Pawn shops are in business to make money, so they will only offer you about 60% to 70% of the true value of your jewelry. Therefore, you don’t want to pawn more jewelry than you have to, especially if you’re unable to repay the loan.^{[1]
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- Knowing how much money you need on loan will help you figure out the minimal amount of jewelry you need to choose from your collection for pawning.
2
Prioritize your pieces. Try to choose jewelry to pawn that you know you can live without. Pawning family heirloom jewelry might be something you regret later on, but an engagement ring from an old relationship might be easier to part with.

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3
Get your jewelry appraised. Pawn shops are usually only interested in pure metals, like gold and silver, and diamonds. They often turn down gold-plated items, as well as costume jewelry. Take your jewelry to an appraiser or jeweler for a free assessment to find out what your jewelry contains and what it’s worth.^{[2]
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- You can find appraisers and jewelers near you by doing an online search.
- Remember that a pawn shop won’t typically offer the true value of your jewelry, but it’s good to get an idea of what it’s worth, so you know what to expect at a pawn shop (about 60% to 70% of its true value).
4
Keep some jewelry on reserve. If possible, don’t pawn all your jewelry at once. Keep at least one or two valuable pieces with you in case you aren’t able to pay back the loan on time. That way, you can pawn again if you need to buy some more time so that you don’t lose ownership of your jewelry.

Part 2

Part 2 of 3:

Finding the Right Pawn Shop

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Decide how much time you need to repay the loan. Pawn shops will allot you a certain amount of time to repay your loan. If you do not pay in time, the pawn shop is allowed to keep your jewelry. To ensure the highest chances of reclaiming your valuables, be sure to make an accurate assessment on how long it will take you to repay.
- Be sure to factor in some “wiggle room” into your time frame. Perhaps add an extra couple weeks into your projected time frame in case something comes up and you aren’t able to produce the money as quickly as planned.
2
Research local and online pawn shops. Not all pawn shops are equal. Some will offer more money for less jewelry and others will have better interest rates or offer longer periods of time to pay back the loan. Do an online search ahead of time to find out which pawn shops offer the best terms based on your needs.^{[3]
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- Online pawn shops may be able to offer you a better loan and a longer time to pay it off, but they will be harder to negotiate with, especially if you are trying to pawn rare jewelry.
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Visit two or three local pawn shops with your jewelry. Pawn shops try to remain competitive with each other, so if you decide to pawn locally, visit a few different shops to be sure you are getting the best value for your jewelry.
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Be careful. Pawn shops can swap your jewelry for cheaper items when you aren’t looking so never let your jewelry out of your sight. If you didn’t get an appraisal done, bring your own scale to showcase the weight of your jewelry. Don’t trust a pawn shop scale.
- Don’t let a pawn shop talk your jewelry down or appraise it for you.

Part 3

Part 3 of 3:

Pawning the Piece

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Negotiate at the pawn shop. When you’ve found a pawn shop with the right terms for your needs, don’t be afraid to negotiate for the best deal. The pawn shop staff can always decline your offer or offer a counter, so you have nothing to lose by trying.^{[4]
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- When you negotiate, allow the shop to make the first offer.
- You can negotiate the value of the jewelry, the interest rate of the loan, and the time it will take you to pay it back.^{[5]
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- Be prepared to walk away if the shop staff isn't willing to give you the terms that you want.
2
Sign a contract. Don’t trust a pawn shop that doesn’t offer some sort of contract or agreement that documents the loan. Make sure the terms of the loan, the interest rate, and the timing of loan payback are clearly outlined. Be sure there is also a description of the jewelry included.^{[6]
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- Take photos of your jewelry laying next to the contract at the pawn shop in case there are any future disputes about the terms or the jewelry pawned.
3
Pay back the loan on time. It’s really important to pay back the loan on time so that you can recover your jewelry safely. Pawn shops can’t resell everything that gets pawned so they will often melt down jewelry into pure metals and sell it at a market price. They can do this as soon as the jewelry is officially theirs.
- Therefore, your best chance of recovering your jewelry is by repaying the loan by the date and time listed on the contract.

Community Q&A

Question

How much can I get for a pawn loan of a 28 gram 14kt gold chain?

Community Answer

This depends on the daily market value of gold, and what they pay for gold. Today that would roughly work out to $500.
Question

How can I be sure I am getting the same diamonds back after paying off the loan?

Community Answer

Realistically, there are 2 ways. Take the diamond to a certified appraiser and pay an additional fee to have the diamond "plotted" (a sketch of the characteristics and inclusions), or find a jeweler who has a digital camera attached to a microscope that can take detailed photos of the inclusions in the diamond. Either way would involve a cost.
Question

What the value of a 1/4 ct diamond?

Community Answer

The shape and color can vary the price from $200 - 700.