When you’re in a financial pinch, pawning your jewelry can help get you the cash you need fast. However, if you’re not careful, you may end up selling your valuables at a fraction of their actual value.

Before you take your jewelry to a pawn shop, make sure it’s clean and in good condition. Then do your research on a reputable buyer to ensure that you’re getting the best price for it. If you have any receipts or certificates for your jewelry, bring them with you to negotiate a better offer.

Pawn shops are businesses and must turn a profit, so they generally offer a low price to start with. They also charge interest on pawn loans, which can quickly add up.

What to Know Before You Pawn Your Jewelry

It’s important to carefully choose what pieces of jewelry you want to pawn, so you don’t sell or pawn away anything that’s too sentimental. It’s also a good idea to only pawn items you can afford to repay in time.

Some people pawn their jewelry because they need the money quickly and don’t have the time or resources to sell it off. This is a valid reason, but it’s still not ideal.

When you pawn your jewelry, the pawn shop takes a percentage of its actual value and keeps it as collateral. If you pay back the loan plus interest within a specified period, you can reclaim your jewelry. Alternatively, you can also resell the item for a higher price.