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Turning Your Gold Coins and Silver Coins Into Much Needed Cash

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Turning Your Gold Coins and Silver Coins Into Much Needed Cash

Have you ever considered using coins you own as collateral for a short term loan?  Gold and silver coins make the perfect collateral and Arizona Jewelry and Loan can help you turn them into quick cash.

Many people buy gold coins as an investment or receive them as a gift, then stash them away in the closet, only to forget them.  Don’t let that happen.  Valuable collector coins in gold or silver can provide required collateral against a much needed loan when money suddenly gets tight.  You may not be able to plan your life to avoid problems but your coin investment can get you past unforeseen financial issues without a hassle.

Pawn shop quality

Pawn shops have changed over the years to become respectable, clean, brightly lit establishments.  Having moved out of back alleys and shabby streets, today they are routinely found in “good” to upscale neighborhoods. Arizona Jewelry and Loan is located in Scottsdale on Scottsdale Road between Shea Boulevard and Doubletree Ranch Road.

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Pawn shops have a 3000 year history of aiding the poor and have grown to serve people from all walks of life.  Pawn brokers work with law enforcement officials to keep the thieves and criminals from selling stolen items to them for money.  In many jurisdictions, pawn shops turn in daily descriptions of what they have taken in so that officers can compare the lists against known stolen property.  This has done much to improve the reputation of pawn shops.

You will also find that you will be required to provide a substantial amount of information in order to work with a pawn broker.  They will want to see your picture ID and get all of your contact information like a valid address and phone number.  They might even take your fingerprint.  While this might seem nosey it really is for your safety.  They want to eliminate any doubt as to your identity which in turn decreases the likelihood of a problem transaction.

Finding the right shop to pawn gold coins

The first important thing is to find the right pawn shop.   Not every pawn shop will take gold or silver coins as collateral.  Some pawn brokers choose to deal in only a few items while others are just the opposite and deal in many, many items.  You might run into a pawn shop that seems to deal with everything but look carefully as they may have chosen to exclude a few items, one of which could be coins.

Start your search online if you can.  Check out what local pawn shops are offering for sale.  If you see gold coins then they will likely take them as collateral for a loan.  Pawn shops have to keep in mind that if you don’t pay back the loan they will have your collateral to sell to cover the loss.  So, if they don’t routinely deal in coins they won’t want to have them as collateral and risk having to sell an odd lot of coins.  Consider calling the shop before you go to double check if they will take your specific type of coins as collateral.

Don’t waste gas driving around to multiple pawn shops just because they won’t take your collateral.  On the other hand, do consider going to a few pawn shops to see how much money you can get in a loan against your gold coins.  You may have a better chance at a higher loan when dealing with a pawn broker who is experienced in working with the type of coins you are offering for collateral.  The staff at Arizona Jewelry and Loan has many years of experience in dealing with multiple types of gold and silver coins.

While you are online watch what other people are saying about dealing with your local pawn shops.   Arizona Jewelry and Loan has an excellent reputation.  While people have a tendency to complain before they will post a positive comment, watch for comments that talk about situations that sound like your own.  They will help you to choose a reputable pawn broker and shop you can feel comfortable dealing with.

Understanding the pawn process

Before you go to a pawn shop try to learn what is involved in the process.  You are pledging your property as collateral in order to get a loan.  You are not selling your coins when you pawn them.  The money the pawnbroker lends you will be a set amount for a set amount of time at a set fee.  Nothing should be hidden.  If you do not pay the loan on time and do not make necessary arrangements to extend the loan you risk losing your items (in this case the gold coins).

Pawnbrokers do not want to have to sell your items to cover the loan.  They much prefer renegotiating the loan to extend it.  They will earn a little more money and you will still get your valuables back.  There is no need to worry about your credit score.  A pawn loan will not affect your credit rating, positively or negatively.

Be prepared to negotiate.  Try to know the approximate value of your gold coins, but do not expect “top dollar.”  Pawn store owners are resellers, not collectors.  A collector might place a value of $500 on your coin collection but that does not mean you will receive a loan for $500 from a pawn broker.  Set a reasonable minimum price you would like for an item before going to the pawn shop to help guide you in your negotiation.  You don’t want to make a poor decision in the heat of the moment.  It is always safer to back away and reconsider your options than to take a smaller loan than you want/need.

Don’t forget to check a few different pawn stores in order to get the best loan you can.  Much of the process is regulated by laws but not every loan will be exactly alike.  You might also find online comments that make it appear that a certain pawnbroker is easier to work with, especially if you need to extend your loan.  That could be worth more than a few extra dollars.

Showing you items in their best light

Be prepared to prove the value of your gold coins or other valuables.  This may mean having your collection appraised and carrying that appraisal with you when you go for the loan.  If you feel that the amount of money being offered for the loan is especially low you can show the pawnbroker the appraisal.  It could change their mind about the coins’ value.  Having an independent appraisal will also tend to make you feel better than only relying on a pawn broker’s appraisal.  Pawn brokers are experienced in placing values on many different items while an official coin appraiser will be an expert in the value of only coins.

If you have any other written information about your gold or silver coins be sure to bring it along to the pawn shop.  There could be fine points in the information that will make your coins more valuable and even if you don’t know it the pawn broker will.

Be sure to shine up your gold coins then place them in appropriate storage containers.  A layer of dust and grime on them will only depreciate their value.  The pawn broker is not likely to clean up the coins in order to find out what is under that dirt.  Having your collection clean and neatly stored shows that you care for your collection.

To pawn or to sell

Pawn shops give you the choice to either make a collateral loan using your coins (pawn) or to outright sell your items to them.  Be sure you know exactly what you plan to do before going to the pawn store.  Educate yourself on the options of pawning versus selling your coins.  Be sure to look into the positive and negative points of each process.   It is highly unlikely that a pawn broker will offer you a price on an item, if you were to sell it rather than pawn it, which will change your mind from pawn to sell.

The decision to sell versus pawn needs to be based on a number of issues including your ability to repay the loan and the value you place on the items.  If the items have considerable sentimental value you will not want to sell them, and you will work hard to repay the loan so that you do not lose the items.

You will want to try to avoid the need to extend a loan repayment period.  Pawn shops want you to repay your loan and take the item back.  Extending the loan is a pricey option that can quickly inflate the amount of money spent to get the loan, and keep your property.  You might find that choosing to sell a few of the less valued pieces is a better option.

Once you have considered the situation carefully head over to Arizona Jewelry and Loan.  We are willing to work with you whether you want to pawn or sell those gold coins.

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