When you are financially tight, you can sell gold jewellery to a local Pawn Shop near you. Or you have the choice of pawning jewellery at a pawnbroker to get fast cash. Maybe you have thought about pawning a valuable item, but it is worth a lot and has sentimental value.
It can be an heirloom or antique piece of jewellery. But you think how safe is your possession when you hand it over to a pawnshop. So let’s look at how a pawn dealer shop handles your prized possessions. But before we learn how safe your item will be, let’s re-cap on how pawning works.
Refreshing Pawn Loans
A pawn loan is when you give your gold jewellery up as collateral for a short-term loan in exchange for money. Hence, the item becomes the pawnshop’s property until you repay the loan. The money you receive is based on the gold jewellery value.
Once you repay your loan with interest, you receive your items back. However, if you do not pay your money, the pawnbroker has the right to put the item up for sale to recoup the costs of the loan amount.
As you are not selling gold jewellery but pawning it you want to return it. Hence, you want to know that the valuables are kept safe. So, to answer the question of whether your items are safe, the answer is yes.
It is the responsibility of the pawnshop to keep all goods safe while in their possession.
How a Pawnbroker Keeps Your Pawned Items Safe
A Pawn Shop has the latest security equipment with insurance to cover any items held in their possession. If you are unsure about the security systems and insurance with the dealer you are dealing with, ask them about it.
Furthermore, they have a secure storage place to keep accessories and items safe. When you return for your gold jewellery, you will find it unchanged. The jewellery is kept in a safe linked to the security system.
So, if there is a break in the safe, ensure that your jewellery goes unharmed. Another important thing is that when you pawn your diamond ring, the pawnshop tests the piece’s authenticity. Doing this allows you, when returning your item it is tested again to show you that you are getting the right gemstone back.
Other security measures in place are regular audit inspections to ensure the items they have do not go missing or are misplaced in their possession.
What Happens If Your Item is Broken in The Pawnshop
Whether your item gets broken, damaged, lost, or stolen, the pawnbrokers’ responsibility is to replace it. The only time it is not their responsibility is when they provide you in writing that they are not liable for any of the above. Hence, it is crucial to check the paperwork concerning the liability of your possessions held at the pawnshop. In most cases, the dealer will replace it if stolen or broken with a similar piece. Pawnshops pride themselves on being available for clients to get fast cash. They also pride themselves in keeping your items safe as they know it has sentimental value to you.