In a recent post, we explored the stigma that the modern day pawn shop has to bear. In this article, we’d like to shed light on another area you may not have considered… and that is how jewelry stores and pawn shops actually have a few things in common.
1. Both pawn shops and jewelry stores buy gold. Nowadays, you would be hard pressed to find a jewelry store that does not buy back gold. With the high price of gold, there are stores everywhere, even high end jewelry stores that are buying gold. While both pawn shops and jewelry stores will give you money for your gold, the amount is determined by the daily price of gold as well as the shop itself. Due to the independent nature of a pawn shop, you may get more.
2. Both pawn shops and jewelry stores loan against jewelry. It is becoming more and more common to find jewelry stores that will loan money against jewelry. Sometimes, like pawn shops, they will hold the jewelry and if you do not come back to buy it, they will sell it. Other times, the owner will simply allow the jewelry store to sell the pieces straight out. This is very similar to the way pawn shops work with all of their items.
3. Both pawn shops and jewelry stores sell quality, high end jewelry. People believe that by purchasing their items at a jewelry store, they are getting the best quality. Though they will most likely be getting a great piece, they are also paying for it. Jewelry stores mark their merchandise 50% to 150% higher then you will find at a pawn shop. Often times, the selection of jewelry that you can find at pawn shops is equal to that you will find at any jewelry store. Most retail jewelry stores that sell diamonds buy them from wholesalers. These wholesalers buy the diamonds from various places that often include pawn shops.
It is time to change your thinking about pawn shops. There are many family friendly shops around these days that offer great deals. And before you turn to that high priced jewelry store for your next purchase, ask yourself… is it really worth it to shop there just for the name of the store?
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