Rhi Admin
Collecting jewellery can be one of life’s greatest pleasures. Connecting the best of nature’s elements, including gold, diamonds and sapphires, with design, style and substance has resulted in iconic and timeless pieces that have become cherished and adored.
Although not all collections may feature pieces from Cartier’s Panthere collection or a Tiffany solitaire engagement ring, individuals often discover that they have substantial value held within the pieces that they own.
As with so many different stages in life, sometimes it’s right to invest in jewellery and, other times, it’s time to release the value held in your precious metals and gemstones. The question is, ‘just how do you get a loan on jewellery?’. In our glorious guide, we’ll explore how to get a loan against gold jewellery, how to get a loan on platinum jewellery and how to secure cash loans against jewellery.
Unlock the Value of Your Jewellery
Before we discover where and how you can release the value of your jewellery, we can review exactly what types of jewellery can be used as collateral for a loan. Simply put, all jewellery may be eligible for a loan, regardless of the material from which it is made, the gemstones used, the brand or the setting, the type of jewellery in question and, sometimes, even the condition. All of these elements will play a part in the valuation but a reputable pawnbroker will be able to carefully assess your pieces for their value.
Working with a pawnbroker may be a new experience for some; there is often only a vague understanding of ‘how does pawning jewellery work?’ Let’s understand why so many people pawn fine jewellery for a loan, how the loans work and what are the next steps if you’re considering a jewellery loan.
Why do people consider loans against jewellery?
The concept of pawning has been around since the Middle Ages, when people would take items of value – an asset- to a pawnbroker in exchange for a fixed-term loan that they would repay at the end loan term. For some people, it may have been a wedding ring or a piece of furniture. For others, it has been the family silver or fine art.
A key part of the UK’s financial system for centuries, pawn shops were prominent in Victorian times to help working class families navigate credit without access to banking.
Industry regulation for pawnbroking came into force in the late 1800s with the introduction of the Pawnbrokers Act of 1872, rate caps and loan terms. This Act helped to shape and define the modern industry. Rather than fade into the background, pawnbroking has become an extremely viable option for higher wealth individuals who need access to liquidity at high speed and don’t have time to wait for a banking loan approval.
The 2008 financial crisis saw the pawnbroking industry become a trusted resource for high wealth individuals that needed to release the value held in their fine jewellery, fine art, classic cars and wine collections in order to meet their short-term financial obligations. People leveraged jewellery to meet mortgage loan repayments or to pay school fees.
Luxury pawnbrokers have remained at the forefront of short-term loan options in the UK, releasing value on a range of high value items, from whiskey to designer handbags.
Should I find a jewellery pawn shop near me?
There are highly reputable pawnbrokers across the UK, many of which have been operating for hundreds of years. You can visit them in person for a valuation.
Equally, you can also access pawn loans through an online jewellery pawn shop. This may be preferable for clients that are geographically distant from a good pawn broker or for those that may not want to visit a pawn shop in person.
Pawnbrokers build their team of specialists carefully, as much for their knowledge of jewellery, art and high value items as for their customer service and empathy. Pawnbrokers understand and appreciate that clients may feel tense or reticent about entering a pawn agreement. This is especially true of clients that are nervous about pawning valuable assets that may have great sentimental value attached or that may be intended to stay within the family as an heirloom.
This is also a major benefit of taking a pawn loan against jewellery as the assets remain in the client’s ownership for the duration of the loan and are not sold.
Importantly, pawnbroking is a confidential and secure lending process which takes the security and safety of assets very seriously. All items that are used to secure pawnbroking loans are stored securely in insured vaults or safes in the case of jewellery and in temperature-controlled bonded cellars in the case of fine wines.
Why is a pawn loan for jewellery such a fast option?
Key to the foundations of the pawnbroking industry was the need for speed and swift release of funds held within goods. Individuals seeking a quick but trustworthy loan process could get a loan for jewellery in as little as 24 hours from valuation to account. This is the same for brokers that deliver a pawn jewellery online option alongside a physical pawnshop that clients can visit for valuation.
While the pawnbroker needs to be regulated by the FCA, clients wishing to pawn jewellery and get a loan on gold jewellery or diamonds jewellery can do so with minimal paperwork.
What Checks are Required to Pawn My Jewellery?
No credit checks are required to pawn jewellery – or to pawn anything. This makes it an attractive option for those with a low credit score or a limited borrowing history. Although many people in the UK have access to credit through a credit card, some people prefer not to have a credit card of any sort. This could mean that they need credit at speed, even though they don’t have a credit score of any note.
Critically, for some borrowers, a gold jewellery loan that is based on the value of the piece – known as the asset – opens the doors to financial liquidity that would remain closed based on their financial history.
A pawnbroking loan will also leave no footprint on an individual’s credit score and this can be incredibly important and beneficial to some potential borrowers. Rather than risking the impact of non-repayment of the loan on a credit score, at the end of a pawnbroking loan term the asset is simply sold. In fact, if the market has changed during the loan period and the pawnbroker fetches a higher price for the asset that the loan was for, the profit is returned to the borrower. Essentially, pawnbroking can be viewed as a risk-free borrowing option when compared to traditional banking or lender loans.
I need a pawn loan against jewellery – what’s the interest rate?
With agility and speed on pawnbroking’s side, the cost of a secured pawnbroking loan will usually be lower than that of a credit card or a short-term, high interest loan, similar to a payday loan. Pawnbroking businesses are supportive of clients and actively want them to return at the end of the loan period to pick up their asset. To ensure that it works for clients, modern luxury pawnbrokers target cost-effective borrowing with manageable repayment terms.
For clients that experience a change in financial circumstances during the loan period and need to review the terms, pawnbrokers will look to extend the loan period if required and if the client is proactive in communicating their situation with the pawnbroker.
Fast, secure loans without loss of jewellery ownership
A pawn loan against jewellery delivers a fast, secure, flexible way to access short-term funds while retaining ownership of valued and valuable assets. A viable option in cases of liquidity issues for unexpected expenses or financial commitments, pawnbroking offers a trusted alternative that won’t impact your credit history and doesn’t need a credit check to secure the loan.
Confidentiality and security are at the core of the pawnbroking process, with the ability to pawn jewellery online or visit a pawn shop in person means it is easy to find a pawnbroker within easy reach.
With a history that reaches back through the centuries, pawnbroking has adapted to the modern world and is a reliable, accessible way for individuals to unlock the value of their jewellery. If you’re considering a pawnbroking loan against jewellery, work with a reputable pawnbroker to ensure fair valuations, professional customer service and a transparent process that is tailored to your financial needs.
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