The economic downturn has left many people in need of extra cash
. It has also gotten many people thinking about selling jewelry, coins and other objects made from precious metals.
Not surprisingly quite a few people don't want to do this because these items could be family heirlooms or collector's items that they want to hold onto. Fortunately there is an alternative to selling these items. A person can pawn them for the cash they need instead.
The way pawn works is simple you turn the item over to a broker who lends you money against it. You then have a period of time, usually 90 days to pay off the loan. If you don't pay it off, the broker simply takes possession of the item.
Advantages to Precious Metals Financing
There are many advantages to this kind of financing which is also called a secured loan. The biggest one is that you can your items back and not have to sell them.
This means if you are facing short term financial situation such as the need to pay bills quickly or pay off a credit card debt you can get the cash you need. Then if you have cash coming in from a salary or government benefit later on you can your item back.
Another good thing about these loans is that you can use gold or other precious metals you bought as an investment to get extra funds without selling them. That way you can keep your investment yet still get emergency money.
Why Pawning Your Items is Safe
Many people will wonder if pawning their items is safe. It is because in states like New York, pawnshops are strictly regulated by authorities. They are required to abide by the contacts of their loans by law and redeem your items. There is little or no chance your things will be lost if you hock them.
This kind of financing is also very convenient you can get cash or a check. Some brokers even let you load the funds onto an electronic card.
How to Pawn Your Gold
Items that can be pawned include precious metals like gold, silver and platinum. You can also use jewelry, coins, watches and gems for a secured loan.
The best way to borrow money against these items is to go to a legitimate jeweler that specializes in buying such valuables. Persons in New York are in luck because there are many such firms in and around the city.
Many of these family owned businesses have been in existence for generations and they will often lend more money on items than brokers in other parts of the country. This makes it very convenient to take advantage of such services.
If you have items made of precious metals or gems you should have no trouble getting emergency funding. Better yet you won't have to pledge all or part of your paycheck to get it as you would with a "payday loan."