Gold has a low melting point which makes it easy to turn into coins, ingots, and bars for use as currency, and it doesn't tarnish or wear down like silver which makes it one of the most valuable types of natural elements found on earth. Gold just so happens to be a popular material used for jewelry creation, so chances are that the jewelry you never wear is worth some cash. Here's how you can use your unwanted jewelry to pad your pockets when you're in need of some dough:
Get a Loan
If you have jewelry that's been in your family for decades or that has some kind of sentimental value, you probably don't want to get rid of any of it for good even if it's never worn. In cases like these, using your jewelry as collateral for a loan is an effective option. Jewelry loans don't typically require any extensive paperwork like bank loans do, and once you've paid your loan off you can get your jewelry back for safekeeping.
Before signing a loan contract, make sure you clearly understand what will happen to your jewelry if you're late making a payment. Some companies offer extensions and other options, while others simply confiscate the jewelry and void the contract. Interest rates are another consideration – take time to find a company to work with that competes with low bank loan rates in your area.
Pawning your jewelry offers some flexibility because you don't have to purchase it back from the shop you sell it to if you don't want to. However, the option to retrieve your jewelry is there if you want to buy it an increased price. Unlike with a jewelry loan, you probably won't be offered a rate that amounts to the jewelry's actual value, so it's a good idea to explore all of your other options before going this route. However, the process of pawning jewelry is quick and easy so it can be effective in getting you out of a financial pinch when time is of the essence.
Rent it Out
A great way to put your jewelry to work for you without having to sell it is to rent it out to people in your community. You can run advertisements in local newspapers and online community forums to offer jewelry rentals for special occasions and important events. To ensure that you are compensated in case the jewelry is lost, damaged, or stolen while it is on loan, consider requiring a security deposit upfront that will be returned to your customers if the jewelry is delivered back to you in good shape.
Host an Auction
If you are the proud owner of precious jewelry that you no longer want to keep, host an auction for the pieces so you can benefit from the highest possible profit. To ensure that you get a fair price no matter who the winner is, place a minimum bid amount for attendees to agree to before placing any bids.
To optimize auction attendance, team up with a non-profit organization in your area that is willing to help host the event in exchange for a small percentage of your profits. You'll end up with money in your pocket and feel good about helping your community when all is said and done.
These ideas can be mixed and matched depending on how much jewelry you're willing to part with and what type of jewelry it is. For example you can get a loan for the rings that you'd like to get back at some point and also auction off the necklaces that you don't see yourself wearing in the future.