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How do pawnbrokers determine the value of pawned items?

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Are you in need of cash and thinking of pawning something? The obvious question you may want to ask is how much will you get for it? Brisbane pawnbrokers will not offer you the retail price of your items. In fact, they will not offer you anything that closely resembles the price you paid when you initially bought your items. What can you expect to get for the wedding ring you no longer need or the broach that has been in your family for generation? The retail price of jewellery not only includes the value of the gold or metal used to make it but the embellishments and the design as well. A Pawnbroker is not swayed by the design, no matter how unique it might be, nor will he pay extra because the jewellery has sentimental value. So, how does a Pawnbroker determine the price for your item?

There are several things that a Pawnbroker will do in order to give you a quote.

What is the condition of the item?

The item will be assessed, taking into account how old it is, what condition it is in and what the demand for that particular item is.

What is the Demand?

Pawnshops accept a variety of items but you may find pawnshops that have more of the same item in their inventory. It could be that a pawnshop has more jewellery than it has electronics, or it could carry more household appliances than it does other items. This should be an indication of what a Pawnbroker prefers. You should consider this before you bring an item to be pawned or sold. A Pawnbroker who seemingly carries a lot of electronics and household appliances might not be interested in your great-grandma’s gold jewellery that has been in your family for generations, or gold coins you inherited from some family member. If he is not interested in these, he is more likely to offer less money for them. So, in the initial evaluation, the item will be inspected and the Pawnbroker will find out what the resale value of the item would be.

With jewellery, a Pawnbroker will inspect and verify its purity. The price that a Pawnbroker will offer is influenced by whether the item can be resold as is or whether it should be considered as scrap.

Salability

A Pawnbroker has to consider how sell able your pawned items are. Will he be able to sell it for a good profit in the event that you fail to pay back the loan amount plus interest?

If there is already too much jewellery in the inventory and it has been sitting on the shelves for a while, the Pawnbroker will be less inclined to buy or offer a good loan against it. People will not go to pawn shop that specialises in gold jewellery to buy a second-hand TV and vise versa. It would also be difficult to pawn a surfboard inland or a snow sled in a warm winter region. The point is, if your item is in demand and can be easily sold, a Pawnbroker might offer you a good price for it.

When assessing the pawned items, a Pawnbroker may use catalogues, guide books, the internet and their own experience. Methods may vary and this is why you should consider how long a pawnshop has been in business for.

Most Brisbane pawnbrokers are trained to identify precious metals and precious gems.

There is still the risk that the item being pawned was stolen. To help law enforcement, Pawnbrokers always take copies of the IDs of everyone who brings their goods in.

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