Looking for Good Deals When You Buy Gold, Silver, and Platinum Jewelry?
Don’t Forget to Check Out Pawn Shops!
On this blog, we have often advised our readers to go hunting for jewelry and precious metal scrap at factories, in jewelry stores, and at estate sales. Today, we would like to discuss another source that might not be on your radar . . .
Pawn Shops
Precious metal investors tend to overlook pawn shops. Perhaps that is because pawn shops don’t have the best reputations as businesses. Or maybe it is because investors think that pawn shops will only sell low-quality items, keeping the choice items to sell on their own.
There is some truth to those objections. But in our experience, it is sometimes possible to buy gold, platinum, and silver jewelry and other items at good prices at pawn shops. But buying from them at advantageous prices requires care.
Here are some steps we recommend.
Conduct online research of items that are available. Every kind of business has found a way to market online, and pawnshops are no exception. PawnAmerica.com, a national service, lists jewelry and other items that are for sale at pawnshops across the country. You can also find listings of items for sale at pawnshops in your area. Looking online is much more convenient and efficient than visiting pawnshops in person!
Buy from pawnbrokers that are well established and check them out with the Better Business Bureau and other monitoring agencies. Some, like all businesses, have been in business for years. Be sure to do business with them. Avoid buying from pawnshops that have only recently opened their doors, or that are doing business only online.
Always research the value of what you are buying. A little poking around online should yield a list of items that are similar to what pawnshops are offering. If you are thinking of buying a Rolex watch from a pawnshop in your area, for example, be sure to research the price of that same model watch at other sources online.
Negotiate on price. The longer an item remains unsold in a pawnshop, the greater your ability to negotiate on price. So don’t hesitate to make a low bid and see how a pawnbroker responds. Also, consider bargaining to buy several items that are for sale at the same pawnshop. It is a negotiating tactic that can result in greater savings for you. Also, offer to buy items with cash or with a certified check or other guaranteed way of paying. Cash up front is a negotiating point that can help you buy at a reduced price.
Ask about documentation and guarantees of authenticity. Sometimes a watch will be available with its original box and papers – but not always at a pawnshop. But always ask whether the pawnshop can guarantee the authenticity of items you might buy.
Find out about the condition of the items you are considering. Some of the items that turn up at pawnshops are in pristine, as-new condition. Others are not! Obviously, the value of a watch or other piece of jewelry that is in perfect condition will be higher than for an older, worn item. Either examine the item personally if you can or ask for high-resolution photos if you are buying online. And require a written agreement that you can return items for a full refund if they turn out to be damaged or worn.
Recycling Used Jewelry and Other Items for Maximum Profit
Be sure to call Specialty Metals Smelters and Refiners at 800-426-2344. We can tell you how to send your items and scrap to us for testing and how to have us recycle your items for a maximum return on your investment. Why not call our precious metal refiners today?