Loan and Jewelry FAQ: Everything You Need to Know Before You Pawn
If you’re considering a jewelry loan from a pawn shop, you probably have quite a few questions. After all, it can be a scary process to leave your cherished and expensive jewelry pieces with an unknown business like gold and jewelry buyers.
At Watch & Wares, we believe in empowering customers with the information they need to make secure, confident decisions. Whether you need fast cash or want to leverage the value of your fine jewelry without selling it outright, understanding how collateral loans work will help you make the most of the process. Here are the answers to some of the most frequently asked questions we receive about jewelry loans.
How does the jewelry loan process work?
At Watch & Wares, the jewelry collateral loan process is straightforward and designed for your convenience. Simply bring in your item to one of our experienced team members for a free, no-obligation appraisal. We’ll carefully assess your item and determine its secondhand value. If you decide to move forward, we’ll issue you a loan ticket with all terms clearly outlined.
If you accept and sign a collateral loan agreement, we’ll safely store your jewelry for the duration of your loan. At Watch & Wares, all of our jewelry loans are for four months with a 10-day grace period. If you repay your loan within the allotted timeframe, you can reclaim your jewelry at any time. If you fail to repay the loan, we’ll keep your gold, diamond, or estate jewelry as repayment.
How do you determine a loan amount?
Our team determines the value of your jewelry based on several factors: the purity and weight of any precious metals, the quality and carat of any gemstones, the designer or brand, condition, and demand for similar pieces in the current market.
Our goal is to offer fair, competitive loans with no pressure, so you can make the best choice for your financial needs. If you’d like to maximize your loan value, make sure your collateral is clean and in good condition, and bring any original packaging, certificates, or other documentation.
What is a loan renewal?
Life doesn’t always go according to plan, and pawn shops understand this. That’s why many jewelry and loan shops, such as Watch & Wares, offer loan renewal options. If you’re unable to repay your loan by the original due date, you can request a loan renewal by paying the total accrued interest. This allows you to reset your four-month loan term while your jewelry stays safely stored. As long as your payments are up-to-date and you’re following the terms of your agreement, loan renewals are typically available as many times as you need.
Can a jewelry loan pawn shop sell my pawned item?
Your collateral is still your property for the entire duration of the loan term, and a reputable pawn and loan shop will never sell your jewelry during this time. Only after the contract expires and all grace periods are exhausted does the shop have the legal right to sell your pawned item to recover its funds. Until then, you always have the opportunity to pay off your loan or renew it, knowing that your jewelry is safe and secure the entire time.
Are jewelry and pawn shops regulated?
Reputable jewelry and loan shops in California are strictly regulated by state and local laws. At Watch & Wares, we’re fully licensed and comply with all legal requirements, including thorough documentation, secure storage, fair lending practices, and identity verification. All of our interest rates are also state-regulated to guarantee fair values.
If you’re looking to use your gold jewelry or other luxury goods for a collateral loan, visit Orange County’s most trusted experts in jewelry & pawn shop loans. Watch & Wares accepts all kinds of fine jewelry, designer goods, and rare collectibles as collateral, so you can get same-day cash with any of your valuable accessories. Give us a call today at 714-731-9600 or contact us online to schedule an appointment for a free, no-obligation appraisal with one of our experienced staff or expert gemologists.
