Sometimes, it may seem like you are caught in a perpetual loop of financial problems. You solve one problem and then another pops up. That’s life. You may have pawned your wedding ring a few months ago when you needed to pay for some unforeseen bill and now you find yourself having to deal with another one. Right now, a lot of people don’t have money lying around for a rainy day, everyday is a rainy day since the COVID pandemic broke out. You may have been able to repay the pawn loan that last time and redeemed your wedding ring now can you use the same ring to get another loan from the same pawn shop Melbourne?
The short answer to that question is Yes! There are a couple of benefits for a pawnbroker to give out a loan against the same item.
The fact that you were able to repay the loan that first time round means that you have a good history with the Pawnbroker. He has no reason to assume that you won’t honor a loan agreement this time round. The Pawnbroker isn’t taking a great risk. Besides, if you do fail to repay your loan, the Pawnbroker can still sell the wedding ring and get his money back plus some profit.
Because the Pawnbroker is already familiar with your ring, he won’t have to go through the process of authenticating or evaluating what it’s worth again. This saves time and effort. The Pawnbroker can offer you the same amount as before or adjust the offer slightly if the price of gold has changed significantly since the last time you pawned the ring.
There are some exceptions. For instance, a Pawnbroker might be suspicious and refuse to give you a loan if you bring multiple products of the same thing. Say, if you brought in five engagement rings in addition to the one you once pawned. The Pawnbroker might ask for receipts just to be sure that the items are yours. Why would you suddenly have 5 wedding rings? Have you been married multiple times or do you just like buying those types of rings? Pawnbrokers have to be careful that they don’t find themselves on the wrong side of the law by accepting ill-gotten items.
Sell and Resell
When you bring your wedding ring the second time around, you still have the same options as you did before. Pawn or sell. Pawn the ring, if you are still attached to it and you are sure you will be able to pay the loan back. Sell the ring if you have no more use for it.
Some people buy gold jewellery specifically as an investment. Instead of cash, people keep gold to use especially in difficult financial situations. Pawnbrokers know this and they welcome customers who take advantage of the liquidity of gold.
It’s not only gold jewellery that people pawn more than once. You can take the same laptop, power tools, television or musical instrument to a pawn shop Melbourne more than once and get the cash that you need for it.