Before you pay more than necessary for a new gold chain, visit your local pawn shop. Pawn shops often offer gold jewelry including necklaces and chains for 30-40% less than you’ll pay at a retail store. Here’s everything you need to know about buying a gold chain from a pawn shop.
Why are Gold Chains Cheaper at Pawn Shops?
The inventory that pawn shops carry is purchased from individuals, not from a manufacturer or wholesaler. So the gold chains, rings, bracelets, and earrings are all resale items. This also contributes to lower overhead costs for a pawn shop, as they don’t have to pay for shipping to acquire merchandise, or to ship jewelry to buyers.
Pawn shops also buy new inventory all year long. Unlike traditional retailers that may buy inventory a few times a year, pawn shops are buying and acquiring new jewelry all year long. This allows them to drop prices as they see fit. If they have a lot of gold chains in their inventory, they can discount them to sell.
Pawnshops also sell jewelry that has been forfeited by those who used their jewelry as collateral for a pawn loan and failed to pay back the loan. Because the pawn loan was made for a percentage of the value of the chain, not the actual value of the item, the pawnshop doesn’t need to charge a hefty price to recover their losses.
Finally, consider that most pawnshops are literally small businesses. Instead of leasing space in a high-rent shopping mall, they often occupy smaller commercial spaces, with lower rent. This makes their monthly overhead much less than a traditional retailer, so the savings can once again, be passed onto the buyer.
Besides significant savings on high-value items, there are several other reasons to consider shopping at a pawn shop.
- Support local business, and local economy
- Support small business owners
- Find high-value items at great prices
- Find unique items not in stock elsewhere
- Reduce environmental impact (no fuel or packaging for shipping required)
6 Tips for Getting the Best Deal on a Gold Chain at a Pawn Shop
If you’ve decided you want to purchase a new gold chain, you may be able to get an even better deal on it, if you follow these tips.
Check Current Gold Prices
You don’t have to know the spot price of an ounce of gold in real time to be an informed buyer. But you should do minimal research to find out if gold is in high demand. You can check current gold prices online anytime. A few helpful sites are here and here.
Find a Top-Reviewed Pawn Shop
Online reviews about various pawnshops can be a great way to determine which pawn shops you should visit when shopping for a gold chain. You should also look to see if they are members of any professional organizations, such as the California Pawnbrokers Association. Favorable online reviews, and involvement in the industry at large is an indication that a shop operates an honest, ethical business.
Learn a Bit about Karats
Gold chains are available in a variety of karats. The karat is determined by the purity of the gold. The higher the karat, the purer the gold. A 24k gold jewelry is pure gold, which means it’s the most delicate. 18k gold is almost pure gold and is commonly used in gold chains, but it is also delicate, and can be scratched. 14k gold is less pure, but is more durable than other gold, so it’s a great option for a gold chain. 10k gold is the least expensive, but it’s incredibly durable, affordable, and won’t scratch easily.
Set a Budget and Stick to It
To ensure you feel like you’ve gotten a good deal on a gold chain at a pawnshop, set and stick to a budget before shopping. This can prevent you from making an excited, emotional decision that you may regret in a day or so. Know what you’re willing to spend and stick to it. If you cannot find what you want for your budget, just wait a few days. The inventory at pawnshops is constantly changing. If you visit a shop on a Monday, you may very well find all new items if you return on Friday.
Plan to Pay in Cash
Every time a business accepts a credit card, they are charged a fee. Often this added cost to the business is worked into prices that customers pay. If you’re shopping for a gold chain at a pawn shop, let the pawnbroker know that you’ll be paying in cash. You’ll likely get a better deal.
Ask for a Lower Price (Negotiate)
You won’t offend anyone at a pawnshop if you ask for a lower price on a gold chain than indicated on the price tag. Negotiation is expected and welcomed in pawnshops. But don’t expect pawnshops to accept lowball offers. They need to make a profit. Offering 10-15% than the marked price for a gold chain is a reasonable offer to make.
Shop for Gold Chains in the SGV
If you’re in the market for a gold chain, stop by our locally owned and operated pawn shop in downtown Azusa today. Azusa Pawn carries jewelry, coins, collectibles, sporting equipment, musical instruments, and electronics.
As a top-reviewed pawn shop serving the entire San Gabriel Valley, our team at Azusa Pawn strives to exceed your expectations in inventory, pricing, and customer service. We are proud to offer our friends and neighbors premium items, for excellent prices. We are also here to lend money on most items of value, and buy your unwanted, or unused jewelry, power tools, luxury handbags, and more. Azusa Pawn is conveniently located at 1028 West Gladstone Street. We are open seven days a week from 9:30 am – 6:00 pm. We have many, but not all items listed in our online store, which you are welcome to shop 24/7. Have a question for our team? Get in touch with Azusa Pawn today.