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When you pawn an item, you use it as collateral for a short-term loan from a pawn shop. Using personal belongings as collateral is a practice dating back thousands of years. Today pawning items remains as popular as ever, with customers in need of quick cash turning to their belongings to use as collateral for a loan. It works the same way it has worked for years. If you need a short-term loan, you can take most items of value to a pawn shop to use as collateral. The pawn shop will extend a loan offer based on a percentage of the value of the item. Should you accept, the pawnshop will draw up loan paperwork for you to sign and will take possession of your item temporarily. Once you repay the loan your item will be returned to you. Sounds easy, right? It is. But if you’re planning to pawn gold or silver at a local pawn shop there are some tips to follow to make the experience easier than ever.

Decide Which Gold or Silver Items You Want to Pawn

Depending upon the shop, you can use a variety of gold or silver as collateral for a pawn loan. Pawnshops may accept the following gold and silver items as collateral for your loan:

  • Gold earrings
  • Silver bracelets
  • Gold necklaces
  • Gold rings
  • Silver rings
  • Gold bullion
  • Silver bars
  • Gold nuggets
  • Gold coins
  • Silver coins

If you need a smaller loan, consider pawning silver items first. The reason? The spot price (also called the spot price) of silver is significantly less than the spot price of silver. As of this writing, for example, the spot price of gold was more than $1,900, compared to the spot price of silver at just over $25. The price of the precious metal you’re using as collateral will directly determine the amount of the pawn loan you may be offered.

If you’re planning to pawn gold or silver jewelry and you need a larger loan, look to jewelry that contains diamonds or other gemstones. This will increase the value of the item, and thus the amount you can borrow. Keep in mind that the purity of the item will also play a role in determining what the pawnshop determines the jewelry is worth. A 14k gold necklace will be worth more than a 10k gold necklace, for example. Likewise, when it comes to silver, Fine or pure silver, which is stamped with .999 will be more pure silver than sterling silver, which is .925 silver. Thus the purer silver item will be worth more than the sterling silver piece.

If you’re planning to pawn gold or silver bars, the weight of the bars will also play a role in determining the value and your loan amount. Common sizes of gold and silver bars are 1oz, 5oz, 10oz, and 100 oz, but different mints may offer other sizes as well.

Get the Biggest Pawn Loan for Gold and Silver

If you’re not in a hurry, you may consider having your gold or silver items appraised. This can open your eyes to the value of your item, so you’ll be informed when you go to the pawn shop. However, oftentimes people need to pawn items in a hurry because of a financial emergency. In those cases, getting an appraisal isn’t always an option. But that doesn’t mean you still can’t get a great loan.

Instead, just do a quick online search for the current prices of gold or silver. That way, you at least know if the precious metals prices are up (which they often are during economic uncertainty, such as during periods of inflation or international conflict). Then, before you head to the shop, wipe down your gold or silver coins, jewelry, or bars with a damp cloth. Avoid trying to scrub anything with a toothbrush, or abrasive cleaning solution. Instead, just wipe it down so that it’s shiny.

You may also want to take your gold or silver items to multiple shops to see if prices are significantly more generous in one shop versus another. Just keep in mind, that once you leave, there is no guarantee that the loan offer will still be available if you return in a few days.

Once a pawnbroker makes you an offer (and you should always let them speak first), it will be up to you to accept, decline, or negotiate for a better offer. Having original packaging, certificates of authenticity, or even a compelling reason you need a bigger loan may help increase your offer.

Pawn Loan Paperwork

Once you’ve settled on a loan amount with the pawnshop, you’ll need to provide your identification and review and sign all paperwork. Be sure that you completely understand the loan terms. If you don’t understand something do not shy away from asking. Before you sign and relinquish possession of your item be sure you know:

  • Interest rate
  • Monthly payment due
  • Payment due dates
  • Penalties for late fees
  • Penalties for missing more than one payment
  • Length of the loan term
  • How the payment must be made
  • Who can make the loan payment
  • If the pawnshop accepts interest-only payments
  • What to do if you can’t make your payment
  • How long you have before the pawnshop puts your item for sale
  • Total amount of the repayment of the loan

Once you’re certain you understand all the terms, and you accept the offer, you’ll sign the loan agreement, and receive the money for your item.

ou can take comfort in knowing that a pawn loan is not reported to credit bureaus. So a pawn loan will never show up on your credit score. Likewise, your credit will not be checked as a condition of granting you a loan. You will not have to prove you have money in the bank or even a bank account. The gold or silver item you’re pawning serves as the only collateral necessary for you to secure a loan.

Pawn Gold or Silver Items in the SGV

Azusa Pawn is the San Gabriel Valley’s favorite pawn shop. Serving our friends and neighbors from Azusa, Baldwin Park, Glendora, and surrounding communities, Azusa Pawn boasts a 4.9 rating on Google, based on more than 350 reviews. We extend pawn loans for gold and silver every day, along with loaning money on items such as sporting equipment, designer handbags, tools, musical instruments, and electronics. We also offer pawn loans with simple four-month repayment plans. Azusa Pawn is open 7 days a week from 9:30 am – 6:00 pm. We are located at 1028 W. Gladstone Street in Azusa, convenient to Baldwin Park and Glendora. We look forward to working with you!