Many people take their jewelry to pawn shops and sell gold for cash especially in these economic hard times. A pawnshop works a little differently than a consignment shop. A person has some items of value, say some jewelry, and they need some cash to pay some emergency medical bills so they bring their jewelry to the pawn shop and a pawn shop evaluates the jewelry for what it’s worth and gives the individual a price for all the jewelry. The individual has two choices to make once they receive a price for their jewelry. They could either sell the jewelry to the pawn shop at which time the pawn shop owns the jewelry and can turn around and sell it to other consumers. Or, the individual can take out a loan using the jewelry as collateral. The pawn shop would take the jewelry as collateral and give the individual a loan to pay their emergency medical bills. At the end of one to two months, the individual would return with the money plus interest and receive their jewelry back. If the individual decides that they can not repay the loan or that the jewelry is not that valuable to them, then they can leave the jewelry with the pawn shop at which time the pawnshop is free to sell the jewelry in order to recoup their loan money.
Many people are using pawn shops to sell gold and use them as loan offices because there is no credit check required and you can always purchase your items back at the end of the loan term. People who thought they would never enter into a pawnshop are now finding themselves using pawn shops not only as loan offices but as places to find unique and one-of-a-kind gifts for birthdays, anniversaries and the holidays.