Pawn shops Offer Better Pricing on Jewellery than Retail Stores

Pawn shops Offer Better Pricing on Jewellery than Retail Stores

At a traditional jewellery store, items are priced on a cost basis.  The designer and make of the item has a lot to do with the pricing.  Pawn shops and Pawn Brokers, however, can base their prices according to the current price of gold in the market.  Pawnbrokers monitor the market and price gold jewelry pieces accordingly.

The daily price of gold doesn’t affect the day to day price of items in the retail jewellery business, whereas a pawn shop can adjust the price to reflect the gold market.  This means that the price paid at a pawn shop will be based on weight and karat in relation to the current price of gold, while the price in a retail shop will be based on make or design. Furthermore, a retail jewellery store buys items wholesale and marks them way up to make a profit.

Pawn shops are able to cut out the middleman and price items according to market value, so it makes sense to purchase from a Pawn Shop or Pawn Broker, why pay more?


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