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Pawn Shops Buy Gold

By: Alex
Category : Loans
January 1, 2013

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It can be easy to accumulate over time a cache of gold jewelry that can sit unused and unappreciated in our jewelry boxes.  Now that we are in full swing during the holiday season and we may be looking for that extra bit of cash to help pay for those last minute gifts, why not round up that gold stash and take a trip down to the local pawnshop?  You could be surprised as to how much gold buyers in Downers Grove are willing to pay you for that long forgotten piece of jewelry.

Pawn shops have served an important role in society for thousands of years.  Pawning actually goes clear back to Ancient Greece.  The word pawn comes from the Latin word pignus which means pledge.  Essentially, if you have a need for quick cash, you can take an item of value-- say a musical instrument, a tool and even gold-- to a pawn shop who will give you money, either in the form of a collateral loan or simply cash outright based upon the value of the item you bring in.

When you pawn an item, you are pledging that item as collateral for the money you receive.  The pawnbroker will have you sign a contract stating the amount of money you get, for how long you have to pay back the money and at what interest rate.  If you fail to pay back the loan during the agreed upon time, the pawned item becomes the property of the pawn shop.

You do not have have pawn your valuables.  You can just sell them directly to the pawn shop.  In this scenario, the pawnbroker will offer you a cash payment based upon the value of your item. 

Whether you pawn or sell, the dollar value you receive can be negotiated; however, the pawnshop is not going to offer you full market value for the item.  Because there are risks involved -- is the item counterfeit or stolen?-- as well as the carrying cost of keeping that good in his inventory forces him to pay you less that if you sold the item on your own.  On the flip side, selling to a pawnshop will get you paid right away, rather than having to wait for a buyer to respond to your advertisement.

Popular items found in pawnshops are tools, electronics and firearms.  Gold is especially popular among pawn shops as gold buyers in Downers Grove can still sell even broken or damaged pieces to bullion dealers, or smelters, for the value of the gold by its weight.