With today’s economy creating tough times for everyone, many people are turning to pawn shops to sell gold and other valuables for quick cash when they need it most.

Pawn shops are designed for quick cash loans without checking a person’s credit or requiring a large down payment of collateral such as a house or a vehicle.  A pawn shop will take collateral for a loan for a period of typically one month’s time and at the end of that time, the loan is to be repaid with a small amount of interest.  State requirements vary on the interest they are allowed to charge but most cannot charge more than 2 to 3%. 

If a person cannot repay the loan at the end of the predetermined time limit, then one of two things could happen; the pawn shop would keep the valuable merchandise and sell it in their store in order to recoup their money, or the person who made the loan may pay a small fee, usually $5, in order to extend the loan for a period of one more month.

If a person who needs quick cash from a pawn shop does not want their valuable back, then the pawn shop will offer to purchase the valuable out right at which time the pawn shop is free to sell the valuable in their store to people who are shopping for good deals on gently used items.

Pawn shops are places that people are shopping for things they need or want but do not want to pay full price for, items such as electronics, computers, cameras or musical instruments.  Other items found at the pawn shop would be jewelry, rifles and pistols, hunting gear, exercise and sports equipment and small appliances such as dorm refrigerators or crock-pots.  Pawn shops will usually take anything of value they believe they can resell for at least a 40% markup.

Another popular way to cash in on unwanted valuables for quick cash is to sell jewelry online through online pawn shops which are springing up all over the Internet.  Doing business that the Internet is not as fast as your local pawn shop but it is discreet and safe; however it is best to look for the Better Business Bureau seal when doing business online.