Pros and Cons of Pawning Your Items for Money

gold pawn shop

UPDATED 2/9/21

If you’re short on money and need an influx of cash now, pawning your belongings can be a good way to get that money. If this is your situation, look up a pawn shop close to me and see what they buy. If you have gold, you might ask do pawn shops buy gold. Depending on the shop, they do. A gold pawn shop or a gold exchange pawn shop will be able to give you cash for your gold, though it might not be as much money as you could get somewhere else. Often pawn shops that take gold will only give you about twenty-five percent of its value. Do pawn shops appraise jewelry? Not necessarily. So they’re a good option for making a quick buck, but not for getting the full value of your gold. If you’re looking to get rid of some valuables and make money, you might be better off looking into other options. But if you need money now and are willing to take less than what the items are worth, you should look into pawn shops in your area.

There are a lot of places that will buy or pawn your used items. This is not a thrift store type place. At pawn shops you can sell your gold, electronics, guns, musical instruments and more. Now, you can either sell your gold and other things or you can pawn them. Pawning means you basically lend them to the pawn shop and they’ll pay you for ‘borrowing’ them but then at the end of the due date, you have to buy them back or you lose them. This may sound just fine when you’re in need of quick cash, but here are a few pros and cons before you go selling jewelry and everything else you own.

Pros

  • Pawn shops can provide you with quick cash. Selling something on eBay or Craigslist or Offer Up depends on the buyers. They determine how much you get, will try and negotiate and you can’t guarantee that you are going to get the money when you want or need it. It can take a long time trying to sell like that. A pawn shop is much quicker. If they buy what you’re offering then you’ll be in and out of there within 20 minutes.
  • Pawn shops can provide you with quick cash. Selling something on eBay or Craigslist or Offer Up depends on the buyers. They determine how much you get, will try and negotiate and you can’t guarantee that you are going to get the money when you want or need it. It can take a long time trying to sell like that. A pawn shop is much quicker. If they buy what you’re offering then you’ll be in and out of there within 20 minutes.
  • Pawn shops can provide you with quick cash. Selling something on eBay or Craigslist or Offer Up depends on the buyers. They determine how much you get, will try and negotiate and you can’t guarantee that you are going to get the money when you want or need it. It can take a long time trying to sell like that. A pawn shop is much quicker. If they buy what you’re offering then you’ll be in and out of there within 20 minutes.

Cons

  • You will only get about a quarter of the retail price of your item. This is so that they can sell it at half the retail value and still make money off of it. For example, if you are trying to sell your gold or a guitar or something that usually retails about $100, you’ll only get $25 for it so they can resell it at $50 and still make a profit. This makes buying from a pawn shop a great deal but selling, not so much.
  • You will only get about a quarter of the retail price of your item. This is so that they can sell it at half the retail value and still make money off of it. For example, if you are trying to sell your gold or a guitar or something that usually retails about $100, you’ll only get $25 for it so they can resell it at $50 and still make a profit. This makes buying from a pawn shop a great deal but selling, not so much.
  • You will only get about a quarter of the retail price of your item. This is so that they can sell it at half the retail value and still make money off of it. For example, if you are trying to sell your gold or a guitar or something that usually retails about $100, you’ll only get $25 for it so they can resell it at $50 and still make a profit. This makes buying from a pawn shop a great deal but selling, not so much.
  • You will only get about a quarter of the retail price of your item. This is so that they can sell it at half the retail value and still make money off of it. For example, if you are trying to sell your gold or a guitar or something that usually retails about $100, you’ll only get $25 for it so they can resell it at $50 and still make a profit. This makes buying from a pawn shop a great deal but selling, not so much.

So before you head out to sell your gold because you think it’s going to be an easy way to get a great deal, this again. This is really only something that you want to do if you are in dire straits and really are in need of the money. Even then, try and see if there are other avenues that you can go through in order to be able to keep more of your own money.