For those with valuables to sell looking for instant cash, a pawn shop will be the most ideal place to go. These shops will provide cash for you in exchange of your item which you will be able to redeem when you return the cash. In other words, pawn shops lend you money and keep something from you in form of collateral. When you return the money lent, you will be given back your property or item. These shops are scattered across streets in several regions in the US. They are becoming a great place to buy precious metals and even investing in gold stocks.
A simple example will suffice here: Supposing you are in need of $300 and you have a diamond ring worth $2000 in your possession, the pawn dealer may accept to give you $300 and keep the pawned diamond until you repay back the money. When you return the money within the specific period (of course with a little interest like $20 depending on what was agreed), the diamond will be returned back to you.
Pawn shops are very important when you are in need of quick cash and don’t want to part with your valuables for that cash. So, instead of selling outright to solve your problem, you give out your valuable with the full confidence of getting it back unaltered. If you hold silver or gold watch the gold price today to see if it is a good time to sell or if you should wait to sell the shop later.
But these shops vary when it comes to buy-back options and interest rates. While some shops offer flat rate for the item, others offer very minimal interest rates and demand higher rates as the week elapse if the money has not been remitted. The redemption period for each shop equally varies. Most shops may give you enough time (about 5 months) to redeem. However, others will specify only a month and charge extra rates when that month elapses.
Apart from the usual collateral method of getting money from pawn shops, you can receive money from them through consignments as well. If you want to sell the item outright, then this option is better. But you are going to receive the money only when the item is sold to the third party. You can also decide to sell the item directly to the dealer. In this way, the dealer buys the item and gives you cash instantly. He then displays the item in their showcase and sells to interested persons.
There are different items you can bring to the pawn shop dealer, although this depends on their policies. But the most acceptable items include jewelry, silver, Gold, properties, cars, computers, laptops, and cellular phones. Keep your eye on the wall street stock market news to know what is going on with all of these products.
You can also buy gold from pawn shops. Now is the best time to buy gold, according to this Kitco post, because it is starting to go up after falling for several years.