Gold prices are on the rise while home foreclosures are haunting people despite the seeming end of a recession, forcing even the upper class Americans seek to sell gold in exchange for fast cash or a short-term loan.
That is good news for gold buyers, but, on the other hand, potential sellers run the risk of selling their gold cheap, so here are some common sense tips to get the most cash for gold out of your deal.
Loan or scrap?
In the first place define which one you want – cash for gold or loan. Reputable pawnshops are more inclined to get you hooked on a long term through a loan, so that you would return for more. Pawnshops are inclined to pay 10 to 20% more for gold items when the consumer is ultimately selling, and the dealer doesn’t have to hold the item, as is the case with loans.
Some stores sell the items after 30 days, giving the authorities enough time to verify the item’s legitimacy. Loan collateral items are kept during 60 days, and according to some pawnshops, about 75% of customers return to claim their gold items, repaying the loan.
Some online pawnshops pay 75% to 80% of the item’s retail value when the customer is selling, but only 50% to 65% of retail value to those who seek only loans.
Read the fine print
Terms and conditions vary with different pawnshops and according to the state legislation, so be careful to read the fine print, especially when you take loans. Interest rates can get very expensive if you do not repay the loan in time, sometimes rising to 25%. When it comes to mailing gold to online stores, some of them offer free shipping, but in case you refuse their price, you may be charged by a very high rate to have the item shipped back to you.
Don’t be ashamed to negotiate
When gold prices are high, pawnshops and jewelry stores will be offering you a good deal of cash for gold, but it doesn’t mean you need to deal with the first shop around the corner. Besides checking out local reputable jewelers, you may want to deal with reputable online dealers, such as Buyers of New York, located in midtown Manhattan. Have your item appraised for you, and if possible, have it appraised officially, especially if it’s something antique or branded. A certified jewelry in the original package is worth a lot more if it has original paperwork and certification. Don’t be ashamed to haggle and negotiate, especially in pawnshops.
When selling particularly expensive high-end bling, for example, watches worth $10,000, it may be a good idea to have a good story to go with the merchandise because pawnshop owners often estimate the amount of loan, judging by the customer’s personal and financial standing. If a customer shows the ability to pay out the loan, some dealers would even offer 100% of the value for particularly quality asset. In other words, someone who just faced foreclosure is less likely to repay than someone who is expecting a job promotion.