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Pawn Shops See Business Spike for Diamonds & More

February 2, 2010 by Administrator 

selldiamondssandiegojpg Pawn Shops See Business Spike for Diamonds & More The Telegraph Herald Online and Reuters are reporting that all across America, pawn shops have seen spikes in their business due to tougher economic times. We here at the San Diego Luxury Pawn Shop Report would certainly concur with that report, especially when it comes to diamond jewelry and items made of gold or other precious metals. In the TH Online article they publish a useful Q & A. The following is a sample.

Question: How does a pawn work?

Answer: A pawn is another term for a collateral loan. Pawnbrokers lend money on items of value ranging from gold and diamond jewelry, musical instruments, televisions, electronics, tools, household items, firearms and more. Some pawn shops might specialize in certain items. Loans are based on the value of the collateral. When a customer pays back the loan, his or her merchandise is returned. A customer also could choose to surrender your collateral as payment in full. Pawn shops may offer extensions/renewals (where permitted by state law).

Question: Why would someone go to a pawnbroker to get a loan?

Answer: Pawnbrokers offer the consumer a quick, convenient and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. Pawnbroking imposes a discipline on the borrower that other lenders do not. Pawn loans do not cause people to overextend credit or go into bankruptcy.

Question: How much should I expect for a loan on my item?

Answer: Loan amounts vary according to the value of the item. There is no minimum dollar amount allowed on a pawn transaction but the maximum amount might be set by state pawn laws. Your loan amount will be determined according to other factors as well such as demand and condition of the item. Not all pawn stores are the same and price will vary.

To read the rest of the Q & A, please check out the article by clicking on: Pawn Shop Q & A.

San Diego Pawn Shops, Gold Buyers, Gold Refineries, & More

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