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5 Reasons Why You Should Buy Jewelry at a Pawn Shop

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Many people immediately think of going to a jewelry store when looking for jewelry for themselves or a loved one. However, whether you’re in the market for an engagement ring, wedding ring, bracelet, or necklace, visiting a pawn shop first is smart.

In this article, we’ll look at five reasons why you should buy jewelry at a pawn shop. And why a pawn shop should always be your first choice.

Collection of jewelry at a pawn shop

#1. Affordable Prices

Have you ever wondered how jewelry stores can have 50% off, 60% off, and even 70% off sales several times a year and still make money?

It’s because jewelry stores have HUGE margins. They pay wholesale prices for their jewelry and typically add a markup of 200% – 400% or more. You may think you’re getting a good deal, but you’re not. It’s all part of a clever sales and marketing strategy.

Next time you visit a jewelry store, ask them how much they would pay you in cash if you return a diamond ring unused in a month. They will normally just refer you to their return policy.

Pawn shops typically have much smaller margins than jewelry stores and are more affordable.

Note: At Maxferd, we offer wholesale savings of up to 90% off of retail prices.

#2. Layaway Program

Thinking of getting engaged but don’t have enough money for an engagement ring? Whether you don’t have enough money, have a poor credit score, or don’t want to max out your credit card, it doesn’t matter. Most pawn shops have a layaway program.

A layaway program helps you to secure that piece of jewelry you really want today. No credit check is required and you have a couple of months to pay it off. Once paid, you collect it.

Note: At Maxferd, our layaway program gives you the opportunity to secure a piece of jewelry with only a 20% down payment. The balance can be paid off in up to five interest-free monthly installments. And we don’t charge any layaway fees.

#3. Wide Selection

Many jewelry stores only sell items within current collections. At pawn shops you can typically expect to find anything from one-of-a-kind vintage jewelry to the latest designs from a popular brand. And new items are added all the time!

Walking into a pawn shop is often like opening a treasure chest. You never know what you’re going to find. Have a look at our article on pawn shop finds to get an idea of some of the items we come across.

#4. Customization

Besides adjusting sizes or adding inscriptions, most jewelry stores don’t offer much in terms of customizing jewelry items. Those that do often have to send your jewelry to an outside jeweler which can be quite expensive.

Most pawn shops specialize in jewelry and many (including Maxferd) have expert on-site jewelers that can fulfill customization requests.

#5. Versatility

Pawn shops and jewelry stores both sell jewelry, but that’s where the similarity ends.

Pawn shops are much more versatile than jewelry stores.

For example:

  • Sell an old ring and use the money to buy a necklace.
  • Buy an engagement ring and sell it back one year later if things don’t work out.
  • Pawn a bracelet you’ve bought one year ago as collateral for a short-term loan.


Based on the five reasons we mentioned in this article, buying jewelry at a pawn shop is a no-brainer. And those are not the only reasons by a long shot.

Unlike a jewelry store where the sales staff often look you up and down, you’ll always feel welcome in a pawn shop. And pawn shops typically have jewelry experts on-site that can answer all your questions and give you good advice.

If you’re looking for jewelry, we invite you to visit one of our five locations in San Francisco and Los Angeles. And even if you don’t want to buy, sell, or pawn anything, feel free to visit us and look around. Call us at (800) 888-7296 if you have any questions.