Pawning has existed for centuries. However, the growth of the banking field, and particularly the popularization of credit cards led to a decrease in the popularity of pawning businesses. Nevertheless, pawn shops seem to be experiencing a revival these days when people are in need of money and try to avoid bank loans because of the complexity and time-length of the bureaucratic bank loan process and/ or due to the high fees that credit cards charge.
Jewelry pieces are likely the items that people use most than any other type of objects when it comes to pawning. Still, there a lots of people who still ignore the difference between selling and pawning.
Selling. When someone sells an item, seller and buyer agree on the price, the buyer pays that amount to the seller and, immediately the item starts belonging to the buyer, now owner of the item. Once the sale is finished, the commercial relationship between seller and buyer is terminated.
Pawning. When a person pawns an object, such as a jewelry piece, the owner obtains a money loan leaving the item as a guarantee or collateral. The owner and the pawn shop set a date for the owner to pay back the loan and fees. If the owner does not pay back within that set date, the pawn shop legally becomes the new owner of the item.
Pawn businesses are strictly regulated, those regulations vary between countries and states, but the basic rules are very similar all over the country. Typically, the owner has between one to two months to recover the pawned item and, depending on the state, pawn loans can be renewed by paying some fees on the loan. This way, the owner of the item get’s a loan extension.
Commonly, pawn shops tend to loan the owner around half of the price of the item.
If you are in need of fast money, consider the option of pawning before you sell you engagement ring in New York, or before you cash for diamonds. Pawning is the solution for those who are in need of immediate cash but still do not want to sell their jewelry.
Contact DiamondBuyerNYC and get a free quote for your jewelry, you will get the highest loan with the lowest fees in the jewelry pawning market. Get the best value for you jewelry!