29 Dec Jewelry Loans: All You Should Know
Many people like to sell their old jewelry when they’re low on cash. But if you’re attached to your jewelry, you may not want to part ways with it. If this is the case, getting a jewelry loan might be your best option. But jewelry loans can be tricky, and you should do your research before you commit to one. Here’s everything you should know.
How Jewelry Loans Work
If you want to loan a piece of jewelry, you can bring it to a gold buyer. They will pay you for your jewelry and then keep it until you pay the loan back, with interest. The interest rate can be quite high, typically ranging anywhere from 6% to 25%. If you can’t pay back the loan, the buyer will keep the jewelry as collateral.
Appraise Your Jewelry
It is important that you know how much your jewelry is worth before you go to your buyer. If you haven’t done your research, you’re more likely to be ripped off. You could get an unfair price or too high of an interest rate. You can bring your jewelry to an appraiser, or you can do it yourself.
The karat of your jewelry should be listed. There will be a stamp on the inside of your jewelry piece. If you can’t find anything, that isn’t a good sign: authentic jewelry tends to come with a marking. If there is a plated marking, that also might be a problem, as many jewelers will not take plated gold. To find the weight of your jewelry, get a gold scale. Go online and find the current price of your karat in grams, then multiply that number by the jewelry’s weight. This is your approximate price.
Should you loan, or sell?
With a loan, you will need to pay back all the money with interest. Loans are great for when you are temporarily short on cash, but you need to be certain that you will have the money to pay back the loan. Selling your jewelry might be safer, and is more profitable in the long run, as you get to keep the money. If you’re not too attached to your jewelry, and you want to maximize profit, selling may be a better choice than a loan.
To sell or loan your jewelry, go to The Gold ATM. Call us at 770-843-4653 to get started!