While the economy has started to recover, many Americans feel left out of the recovery. Their salaries have not kept pace with inflation and they have a harder time each month paying their bills. As they have heard about the price of silver, gold and other metals increasing, they have started to think of their jewelry as part of an investment portfolio. In better times, they might have purchased large gold chains. Grandparents and uncles may have left them gold or platinum pins and rings. They weren’t their style, so they have just sat in a jewlery box. When the person needs cash to pay their bills, they take a few pieces to the Jewelry Pawn Shop.
Pawn shop owners understand how hard it is for people to pawn their jewelry. They might be embarrassed they have to pawn their wedding ring. The transaction is handled in a discreet manner. Because the Jewely Pawn Shop also sells items, no one will be certain if the person is buying or selling jewelry. This is also to ensure the person’s safety. They will be leaving with a large amount of cash. The jewelry will be weighed on a jeweler’s scale to determine its exact weight. The purity of the metal will also be tested. These two factors along with the daily scrap metal price will determine the overall value of the jewelry piece.
Jewlery owners are offered a percentage of that price. The difference between the two prices is the expected pawn shop profit if the person defaults on the loan. Of course if the price of gold, silver or platinum plummets during the terms of the loan, the pawn shop will lose money. Therefore if the pawn shop owner believes that scrap metal prices are decreasing, he will offer a smaller percentage. If he is more optimistic, then the jewlery owner will be able to get a larger loan.
American Gold Mine is one of the pawn shops the St. Joseph, MO region that accept jewlery as collateral for pawn loans. People are welcome to visit them, have their items appraised and discuss a pawn loan.