When you need to buy and sell jewelry at a pawn shop, it’s important to take the time to have your pieces appraised, compare prices and options, and to pay back the loan on time. By doing so, you can avoid losing your valuable jewelry to the pawn shop.

People pawn their jewelry for a variety of reasons. Perhaps they need cash urgently, and payday isn’t coming soon enough. Alternatively, they may have inherited or received a piece of jewelry that doesn’t suit their tastes and they want to upgrade to something new.

• How to Buy and Sell Jewelry at a Pawn Shop

Other common items that get pawned include electronics from mobile devices to laptops and gaming consoles, firearms, real metal flatware, and collectibles. Jewelry tends to be the most sought-after category, however. Gold, silver and diamond jewelry often bring in the highest payouts because of their intrinsic value. Designer pieces (Tiffany, Van Cleef) and high-end watches usually have a significant brand premium and can command five-figure offers. Even broken chains or single earrings can yield good returns because of their karats and metal content.

It’s important to keep in mind that a pawn shop will purchase your jewelry at a price below market value, and they will then sell it later for a profit. This is one of the ways they make money and it’s also why it’s so important to pay your loan back by the deadline stipulated on the contract. If you don’t, the pawnshop will automatically forfeit your item and it will become their property.