Everything comes with a pros and cons list, and jewelry specialty pawn shops are no exception.
These shops can be a great choice when you’re searching for secondhand rings, necklaces, watches, or other luxury items. However, you may also find they don’t always outperform general pawn shops or professional jewelry stores.
Should you pay one a visit? Let’s take a look.
Since they only deal in jewelry, these specialty shops will have a much wider selection of options and styles. You won’t have to go from pawn store to pawn store in the hopes of finding something you like that also fits your budget.
Cheaper than Jewelry Stores
The nature of secondhand lends itself to cheaper prices. Pawn shops, even though they might raise the price enough to make a small profit, don’t mark up their items as much as retailers do – just for the luxury of owning something first.
Doesn’t Support the Jewelry Industry
There are plenty of reasons you may not want to support the jewelry industry, from their unreasonable markup on diamonds to their labor practices. But that leaves a common problem: Where do you find jewelry if you dislike the industry as a whole?
The good thing about secondhand jewelry is that none of the profits go to the original company, so your money won’t be used to support the practice of making new jewelry.
Reusing is always better than recycling. Whenever something doesn’t have to go through the process of being picked apart, melted down, and remade, the world benefits. Why wait for something to be recycled just to have something new, when you can get something cheaper with history and a unique flair?
Lack of Expertise
Though pawn shop owners may take several precautions in identifying jewelry, so as to sell them correctly, the fact remains: they are not a trained jeweler and can make mistakes. You can ask for verification of their claims, but they’re not obligated to provide a certified jeweler just to sate your curiosity or calm your nerves; that can be very expensive.
Slightly Pricier than Normal Pawn Shops
Because they handle objects of higher value, they have a few more expenses to pay than a typical pawn shop. This ranges from specialized equipment to higher security and specialized casing. They may also have higher insurance premiums and deductibles, due to the nature of what they sell. These factors can raise the prices at least a little when compared to general pawn shops.
Sellers Don’t Benefit More
For people looking to pawn their jewelry, a jewelry-only pawn shop doesn’t always mean a better deal. If you sell to a proper jewelry store, you’re likely to find a better profit on your items. Most of the benefits go to the pawn shop and the new buyers, instead of to the people taking out a loan or selling their goods. A jewelry-only pawn shop might be more likely to take more expensive items, but that’s about the extent of the benefits.