People who try to keep their savings in precious metals are often interested in the question of how to buy gold at a pawnshop, because its cost there is much lower. With the right approach, this can be a very profitable purchase. But it must be borne in mind that even when precious metals are purchased on the secondary market, you should be very careful, since gold prices often fluctuate. Therefore, purchasing jewelry can be either very profitable or disastrous.
But this applies to almost all deposits. If we compare securities, precious metals and currencies, then gold is the most stable. Although this concept can be called relative. However, despite the slight fluctuation in prices for precious metals, most investors choose them. At the same time, they receive a good profit from their investments.
What is a pawnshop
A pawnshop is an organization that offers the population certain services: issuing instant loans for a short period of time secured by valuables. You can simply sell some valuables, including jewelry, to a pawnshop. All you need to do is present your passport. Naturally, gold is purchased from visitors at prices much lower than the market average. Further, pawnshops have ample opportunities to sell jewelry through channels that are beneficial to them. Each pawnshop has its own showcase where it displays jewelry that it is ready to sell. Their prices are significantly lower than in jewelry stores. The most interesting purchase option is an auction, which pawnshop employees organize regularly. Buyers have the opportunity to bargain for the right to purchase the jewelry they like. The cost of gold and other jewelry is approximately 30-60% lower than in a store or salon.
Is it dangerous to buy gold at a pawnshop?
As for whether you should buy gold from a pawn shop, some people believe that purchasing precious metals on the secondary market can be quite risky. But in fact, if you contact a good organization that has all the permits to conduct this type of activity, you can be sure that they will not be scammers.
Those who doubt the honesty of pawnshops should remember that the activities of such institutions are strictly controlled and regulated by Russian legislation. Every pawnshop that operates in the Russian Federation must have the appropriate license. Moreover, there is now a lot of competition among such financial institutions. Therefore, they strive to gain a good reputation for themselves and not lose customers. This can be achieved primarily by honesty, which is why most pawnshops operate according to the rules. Often, a company gains new customers only through positive reviews.
A special feature of pawnshops is that they buy precious and other goods from people who are given a certain amount of money for them. However, it must be returned within the specified period. If the money is not returned to the cash register, the pawnshop takes the valuable property left as collateral. The creditor has the right to dispose of these things at his own discretion. Most often everything goes for sale. At the same time, prices are set small and often amount to half of the market value.
It is worth noting that when accepting any collateral, including gold, pawnshop employees always carefully check the products. Therefore, the likelihood of purchasing low-quality gold in such a place is minimal. Modern pawnshops have all the necessary equipment to obtain accurate information about the quality and condition of precious metals, stones, etc.
Buying gold jewelry at a pawnshop
The main feature of buying jewelry at a pawn shop is that there is no possibility of return. You should be extremely careful with very cheap products; they may be of very low quality and in the future not even suitable for melting down.
When making a purchase, it is advisable to invite with you a person who is well versed in jewelry; he will help you make the right choice and not make a mistake in quality. Of course, you should pay attention not only to the quality of workmanship, but also to the design of the product, then it can later be resold with great profit.
In addition to regular ones, today there are many online pawnshops. It is much safer to use them, since they are not only guided by short-term profit, but also care about their reputation, so it is practically impossible to purchase a fake from them. Although, of course, it is advisable to read more reviews about such enterprises before purchasing. When purchasing, you need to pay attention to the label: it indicates the weight of the product and its cost. You should also carefully inspect the product to see if there are any scratches or traces from previous repairs and restorations.
Buying quality gold jewelry will be a good investment.
Gold jewelry
Most of the precious jewelry is made of gold. This metal stores the received energy information. If you wear the product on your skin, it will begin to share the accumulated energy. Why do experts not advise wearing other people's gold jewelry? This is explained by the fact that gold most readily accumulates negative emotions and feelings . Even if a ring or chain was received as a gift, you cannot be sure that it will not cause harm.
It is even more dangerous to wear found jewelry. His story is not known, you do not know what kind of person he was, what difficulties in life he experienced, why and under what circumstances the loss occurred. But all the energy of the former owner was reflected in the decoration. In addition, many magical rituals (spells, casting and removing damage) are carried out using jewelry. And an ordinary ring can turn into a repository of diseases and adversity.
A gold item from a pawnshop can also bring trouble. The person who handed it over will regret that he could not redeem the jewelry. You can buy a stolen item at a pawnshop without knowing it. And as a result, the precious product will radiate regret and sadness for the person who suffered from theft.
Why do round closed jewelry (rings, necklaces, earrings) accumulate energy most intensely? Because their closed circuit does not allow energy to splash out. This is why you should not let someone try on or wear your wedding ring. After all, the person asking for this can change the energy balance of the jewelry. It is also not recommended to try on other people's rings. You may involuntarily convey your negative emotions to the owner of the jewelry. The golden ring attracts illnesses of its owner. Therefore, it is not advisable to buy used jewelry from strangers.
How the price is determined in a pawnshop
The price formation is influenced by the type of gold product:
- his appearance
- degree of wear
- hallmark gold
- brand awareness
All pawnshops, with the exception of very small ones, set prices taking into account the dynamics of the gold exchange rate, in particular, they are guided by information from the London Stock Exchange.
It is necessary to take into account that the price offered by the pawnshop for the product will be as low as possible.
Another similar option for selling and buying gold items is a specialized consignment store. You can sell jewelry in it with greater profit, but you will have to wait to receive money until someone decides to purchase this product.
Is it profitable to buy gold at a thrift store? Prices in such a store will be approximately the same as in a pawnshop, despite the fact that pawnshops set a larger percentage of profits for themselves. However, the consignment store will have to pay a large amount to the seller of the product. You will most likely be able to get a benefit in price, but the chance of finding a truly high-quality piece of jewelry will increase.
Shopping at pawn shops is easier because they are in much greater demand than thrift stores, and this is due to the fact that the pawn shop pays its customers immediately. And since going to a pawnshop is always a necessary measure, and people need money right away, they are forced to put up with the fact that the price they will be offered is not at all favorable.
Hence the conclusion: buying precious metal in a pawnshop is much more profitable, naturally, if reasonable caution is observed, than buying it in jewelry stores.
The estimated price of gold items offered for sale at a pawnshop will vary significantly, so finding a suitable option will not be difficult.
When purchasing, be sure to pay attention to the documents. The mark on the product must match the information presented on the label.
Products in good condition end up on pawn shop windows: everything that is broken or has defects is bought for melting down by jewelry factories and workshops.
Pre-sale preparation includes ultrasonic cleaning and polishing; such procedures renew jewelry no worse than complete melting down.
Despite the fact that the cost of gold jewelry in a pawnshop is much lower than in jewelry stores and stores, it still cannot be lower than the cost of the metal itself in terms of per gram. In order to buy gold here at a favorable rate, it is recommended to monitor prices on the exchange. If the price of gold on it has decreased, it means that the cost of gold items in the pawnshop will also decrease.
Positive aspects of buying gold at a pawnshop
Many people are interested in the question of whether it is possible to make a profit from their deposits. To do this, the investor needs to choose the most profitable object. Most often it becomes currency or metal. Moreover, if there are no problems with money and absolutely everyone can get it, then you can only buy gold bars or coins in banks. However, their cost is high, so such an acquisition requires an investment of large sums. And not everyone wants to deal with paperwork. Therefore, many try to look for simpler options. One of them may be buying gold at a pawnshop.
The advantage of such a purchase is that it is possible to purchase metal even for a small amount. At the same time, it is in pawn shops that you can buy precious metals inexpensively. If you buy jewelry in a salon, then this investment cannot be called profitable. It is almost impossible to sell jewelry in the future at least at the purchase price. Therefore, investing in gold using salon jewelry will not work. It is worth remembering that jewelry wears out over time, so its price drops rapidly.
The advantage of purchasing gold jewelry through a pawnshop is that you can often buy very good used products here, which will cost 2 times less than in a jewelry store. When setting prices for their goods, representatives of the secondary market are guided primarily by the exchange rate of precious metals. If an investor closely monitors the financial market, he will be aware of exactly when it is worth going to the pawnshop to make a purchase. As soon as gold and foreign exchange assets begin to fall, you can buy. This is the only option to exit the trade with a profit. The amount of income in this case will depend on what initial investment the investor is willing to make.
Choosing a pawnshop
Before using the services of a pawnshop, it is advisable to familiarize yourself with permits for the purchase and sale of gold.
It would also be a good idea to check the availability of equipment with which you can accurately determine the weight of the product and its sample. A prerequisite is to compare prices; they can differ significantly in different pawn shops. The item brought to the pawnshop is inspected, its exact weight and sample are determined, all this is done quickly and in the presence of the client. After this, the appraiser names the price he can pay.
It should be taken into account that not all items, even those entirely made of gold, can be accepted at a pawnshop. Thus, orders, other awards, weapons, and so-called “raw” gold in the form of nuggets and granules are not subject to surrender. Many pawnshops only accept scrap gold, and even high-quality jewelry only accepts it as scrap and at a correspondingly low price.
Scrap gold is constantly purchased by jewelry workshops to make new jewelry. Workshops make substantial purchases, so the pawnshop offers them gold at an even more attractive price.
How to buy gold at a pawnshop and not make a mistake
There are several aspects that you need to pay attention to in order to make a profitable and safe purchase:
Authenticity of jewelry
To buy high-quality gold, the main thing is to choose the right pawnshop. Contact chain pawnshops that have been operating on the market for at least 3 years. Such organizations value their reputation and hire professional appraisers. When accepting jewelry, experts carefully evaluate the gold purity and authenticity of the gemstones. Jewelry is studied using modern technology, so fakes and low-quality items do not go on sale.
Documentation
After a professional assessment, the product receives a label and price tag with a selected description of the product: weight, fineness, all stones. You can also look at the hallmark to make sure the hallmark matches the information on the label.
Appearance
Products with defects and breakages, as a rule, are bought by jewelry factories for melting down, and only jewelry in excellent condition ends up in pawn shop windows. Often, clients bring new rings or earrings with tags to the pawn shop.
Jewelry undergoes pre-sale preparation: it is cleaned with ultrasound and, if necessary, polished. As a result, metal and stones receive pristine purity and beauty. If you are confused by the fact that an item from a pawnshop has already been worn before you, then think about the fact that factories often make new jewelry from melted down old ones (buying them, including in pawnshops). Cleaning and polishing jewelry renews it no worse than melting it down.
Price
The cost of gold jewelry in pawn shops is very favorable, but if you see that the price per gram is lower than the cost of the metal itself, be careful, most likely it is a fake or jewelry with a significant defect. To buy jewelry more profitably, keep an eye on the gold rate, since prices in pawn shops are often formed in accordance with data from the London Bullion Exchange. When the gold rate depreciates, jewelry will cost less.
