Is it possible to pawn silver?
Pawnshops accept silver in pure form or in the form of jewelry. But the law prohibits the purchase of jewelry used in scientific and industrial activities, as well as cast metal and blanks.
Whether a pawn shop will accept silver depends on its authenticity and composition. If it is discovered that it is counterfeit or contains foreign impurities, the loan will be denied.
An appraiser, a specially trained employee, is authorized to check the quality of the metal. You will not be allowed to work without proof of completion of the course. Training is carried out by experienced employees who pass on practical experience to the younger generation. The appraiser will quickly distinguish a defect from a quality product.
Each pawnshop has information about the prices offered by the legal entity. The client can independently calculate the amount at which his silver will be valued. But the employee has the right to adjust the amount of the estimated cost based on the data obtained after the inspection. If the client is not satisfied with the amount offered, he has the right to contact another pawnshop to find a more profitable deal.
The cost of silver in a pawn shop
The price of silver in a pawn shop per gram is determined by stock quotes, the jewelry value of the product and its fineness.
An important factor in determining the price is the artistic value of the item. If this is an antique item, the conditions for its delivery are somewhat different from the standard ones. In this case, you should contact a specialized pawnshop. The most popular and expensive is 999 silver. But others are also quoted: 800, 916, 910, 925.
The common 925 is found quite often. You will receive more accurate information about how much it costs to hand over 925 silver to a pawnshop at a specific institution for the purchase and sale of valuable items and goods. On average, prices are at approximately the same level, so you need to start from 36 rubles. for 1 gram of silver.
What is the best way to sell silver to a pawnshop?
Pawnshops accept silver for 20-30 rubles per gram, which is significantly less than the price of gold. At the same time, you can buy silver jewelry in a jewelry store for 38-110 rubles per gram. Due to its low cost, silver is not often brought to the loan office. But when used as collateral, there are significant advantages over gold:
- Quick verification of authenticity, since silver is rarely counterfeited.
- Loan banks do not set restrictions on the volume of metal accepted due to the low price. The amount of the approved amount to be received by the client depends on the weight of the precious metal.
Pledged property is accepted in any condition: untested, with mechanical defects.
The pawnshop accepts silver 750-925 samples. 925 standard is more common for precious metal products. The composition contains more than 90% pure metal, and the products themselves are light in color and characterized by particular purity.
Pawn shops accept silver at a low price. It is more expensive to sell it off. The reason for this is the possibility of purchasing the product from a pawnshop. In a purchase, the client does not have such a right. This explains the difference in the organization's economic risks and pricing.
Jewelry buying offices evaluate the artistic value of the piece. For 1 gram of an antique item you can get more at a specialized pawn shop than at a regular one.
The most expensive items of 999 purity are priced at 30 rubles per 1 gram or more. This is the rarest silver sample.
The final cost is determined taking into account stock quotes. Therefore, you need to find out the exact price before handing over the product; it may change daily.
Gold cost
An analysis of the situation on the world market over 8 years indicates a change in gold prices under the influence of political and economic factors. With increasing demand for precious metals, the price has increased more than 4 times.
The unique nature of the precious equivalent of value lies in the duality of properties. Gold, used as a financial instrument, is considered a means of investing in various assets in order to reduce risks, regardless of the amount of investment and the status of the investor.
The discount price set by the Central Bank of the Russian Federation as of 02/09/2018 is at the level of 2431.01 rubles per 1 year. The gold rate at Sberbank as of today, February 8, 2021 is:
- purchase - 2587 rubles per 1 g;
- sale - 2939 rubles per 1 g.
Compared to the previous period, there is an increase in prices. As of January 9, 2021, the cost of 1 g of gold when selling reached 2,555 rubles, and when buying - 2,279 rubles.
Sberbank of Russia carries out the sale and purchase of measured ingots of solar metal from 1 to 1000. Investments in gold are a reliable way to preserve savings due to high liquidity.
With an increase in the value of noble equivalents on the world market, an investment can bring additional funds. The price of metal ingots, which are sold in high-quality packaging, is directly dependent on the weight of the product (a smaller measured ingot costs more).
Conditions for handing over silver to a pawnshop
Lenders offer to find out the cost of silver online without leaving your home. To do this, there are various services with prices and a calculator that allows you to calculate the preliminary loan amount. To calculate, the client must know the sample, weight and quality of the precious metal.
Decoration is accepted at the loan office only if the borrower has an identification document. To redeem the product, the presence of the owner with a passport and a deposit ticket is required.
To get a loan from a pawnshop, you need to meet the organization’s requirements:
- age category;
- the appearance of the borrower;
- legal capacity.
The employee checks the passport data with the citizen’s identity. The borrower must be an adult capable of being responsible for his actions in order to confirm the right to own the collateral property and the ability to dispose of it. Strict rules are in place to prevent fraudulent activities. If the transaction is completed, it is unacceptable to contact the pawnshop the next day and demand the return of the collateral without paying interest for using the loan. In such cases, penalties will be applied to the citizen, and his actions will be assessed as a way of evading obligations under the loan agreement.
Citizens of foreign countries who have an identification document: passport, residence permit can receive a loan from the loan office.
Only the owner can provide and buy metal from the organization. Other persons, even if they are close relatives of the client and provide his passport, will be refused to receive the collateral. The personal presence of the borrower himself is required. Exceptional cases include only the presentation by the authorized person of permission from the notary, where such a right is spelled out.
How to donate silver to a pawnshop?
The process itself is very simple and takes very little time. You need to decide which product you will hand over, and whether you plan to buy it back. A passport is required to complete the transaction. The price of silver in a pawnshop depends on the condition of the item, weight and delivery conditions. The appraiser classifies and describes the product, determines whether it is a full-fledged one or a scrap of precious metals. The product must withstand the test; if it is complete, there should be no chips, cracks, soldering, or deformations.
The weighing takes place in your presence and the loan amount is determined. Then you will need to sign an agreement on accepting the collateral and issuing funds, which stipulates the terms, dates, cost, and interest rate for using the pawnshop’s money. After this, you receive the agreed amount and a copy of the contract. The loan amount depends on the estimated value of the product. A cash loan is provided for a term of up to one year; some pawnshops establish an unlimited period for using the loan.
Further options
If you needed to hand over the silver to a pawnshop without subsequent redemption, then in this case no further action is required. If you have handed over silver for a while, it is worth keeping the pawn ticket until you buy back your item. For using money you will need to pay interest; on average, the monthly interest rate is 5-7%. Many pawnshops meet their customers halfway and extend the term of the contract. In this case, you just need to continue paying interest for using other people's money.
After the grace period under the contract ends, the item becomes the property of the pawnshop. In the future, you can purchase it on free sale, but at a new price. The new price of silver in a pawnshop per gram is set by the institution itself; it is usually higher than the collateral value, but lower than the market price.
Let's give a specific example
Let's say you want to hand over silver to a pawnshop, the price per gram is about 30 rubles, depending on the sample.
Let's take a marketable ring in excellent condition as an example. If the item is 925 and its weight is 3.5 grams, the estimated cost of the ring will be 105 rubles, and the loan amount will be approximately 75 rubles. To use the loan you will need to pay about 5%, which is 3.75 rubles per month. It turns out that if you buy it back in a month, then for using the loan you will need to pay the loan amount and a small percentage. Using this example, you can calculate how much it costs to hand over silver to a pawnshop specifically for your case.
When choosing a pawn shop, the price per gram of silver is at a very high level and should alert you. The safest thing to do is to contact network companies that have been providing buying and selling services for a long time. This way you will insure yourself against possible risks of fraudulent activities, receive a truthful assessment of products and transparent terms of cooperation.
Transaction rules
When exchanging silver at a pawnshop, there are 2 transaction options. The form of the agreement depends on whether the owner will buy the metal in the future.
- A loan agreement is drawn up if the owner will redeem the collateral. The calculation of payments depends on the procedure established in the pawnshop. The period may be unlimited, but more often it is 1 year. The contract also specifies the percentage at which the loan is issued and the date of purchase of the product. The document is signed in two copies. The client is given 1 copy and a deposit ticket, which must be provided upon redemption. Sometimes pawn shops provide a deferment of the redemption period, but interest will have to be paid for the entire time until the jewelry is redeemed. If the client has not purchased the product, the rights to it are transferred to a legal entity. The pawnshop will put it up for sale at a higher price.
- If the client does not plan to buy back the silver, a sales agreement is drawn up. In this case, the client receives the money in hand without the right to subsequently redeem the jewelry.
A mandatory item in both cases is a description of the characteristics of the decoration.
The advantage of a deal with a pawnshop is the ability to hand over and buy back an item at any time. Therefore, this scheme is popular among citizens. Despite the low cost, the benefit to the client is obvious: he will receive a loan and will be able to return the product if necessary.
about the author
Evgeniy Nikitin Higher education majoring in Journalism at Lobachevsky University. For more than 4 years he worked with individuals at NBD Bank and Volga-Credit. Has experience working in newspapers and television in Nizhny Novgorod. She is an analyst of banking products and services. Professional journalist and copywriter in the financial environment [email protected]
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Silver rate
In the natural environment, silver is found in ore rock and native form. A well-known natural compound of gold and lunar metal is called electrum. The soft plastic material is used in the jewelry industry as a master alloy component.
Investing in silver provides the owner with the opportunity to get rid of unnecessary worries about changes in exchange rates. Modern payment systems allow you to open an impersonal metal account (OMA).
The account is designed to account for the movement of metal in units of mass without indicating the sample, manufacturer, or serial number of the ingot. The purchase and sale price of such silver at Sberbank is set by the financial institution based on the value of precious metals on the international market.
The rate of precious equivalents changes daily, so you should not rely on previous quotes, but find out the latest information, which is updated daily on the Sberbank website.
In branches of financial institutions operating in all regions of the country, it is possible to purchase measured silver bars weighing 50-1000 g.
As of 01/09/2018, the cost of 1 g of silver upon purchase was 33.14 rubles per 1 g. When carrying out sales operations, the price reached 29.59 rubles per unit of weight. As of 02/09/2018, the discount price established by the Central Bank of the Russian Federation was 30.95 rubles/year.
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Author of the article Evgeny Nikitin
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Financial author Olga Pikhotskaya
