Just click on a question below to see the answer, or scroll down the page to read all questions. To learn all about how to buy jewelry, please see our Jewelry Education page.

What's the difference between buying jewelry from King's
and buying from a retail jeweler?
How does a pawnshop work?
Why do people borrow from pawnshops?
What is the foreclosure procedure?
How often do pawn customers default?
Do people bring stolen items to pawn?
Are pawn interest rates higher than banks?

*Question 1:*	*What's the difference between buying jewelry from King's and buying from a retail jeweler?*
*Answer:*	Mainly price. The gold and precious stones in any item of jewelry have been around for thousands of years, so buying previously owned jewelry is not like buying a used car. All items are authenticated, priced, and prepared for sale by our jewelers and gemologists. So why pay retail when you can buy it at or below wholesale at King's?

TO TOP

Question 2:

How does a pawnshop work?

Answer:

Pawnbrokers lend money on items of value ranging from gold and diamond jewelry to musical instruments, televisions, tools, household items, etc. At King's we specialize in jewelry. All customers provide collateral, eliminating the need to distinguish high-risk from low-risk borrowers.

The process is much the same as any other lending institution, with the primary difference being that the amounts are usually smaller, there's no credit check or loan application, and the collateral is secured on our premises during the period of the loan. When a customer pawns an item, terms of the loan are printed on a pawn ticket that is given to the customer. The ticket states the customer’s name, address, right thumbprint, type of identification provided to the pawnbroker, a description of the item, amount borrowed, maturity date, loan interest and amount that must be paid to redeem the item. The collateral can be redeemed by the pawn customer any time during the duration of the loan, upon payment of the loan principle and interest due.

TO TOP

Question 3:

Why do people borrow from pawnshops?

Answer:

Pawnshops offer the consumer a quick, convenient and confidential way to borrow money. A need for short-term cash can be met with no credit check or legal consequences if the loan is not repaid.

A customer receives a percentage of the value the broker believes the collateral would bring in a sale. The loan to collateral ratio varies from pawnshop to pawnshop. Because King's specializes in jewelry, we offer the highest loan amount for your collateral. We will match or better any collateral loan agreement (on jewelry) from any pawnbroker.

Pawnbroking imposes a discipline on the borrower that other lenders do not. Other forms of lending, credit cards for example, impose few restraints, which can lead to abuse. Pawn loans do not cause people to overextend credit or go into bankruptcy.

TO TOP

Question 4:

What is the foreclosure procedure?

Answer:

In California, the loan period set by the state is 4 months. If a customer defaults, the collateral becomes the property of the pawnshop after the loan is overdue by a minimum of a 10-day grace period. Most pawnbrokers in California only allow this 4 month and 10 day period before they may foreclose on an item. However, King's gives its customers a full
12 months! This is only one example of how King's goes the extra mile to serve our customers better than any other pawnbroker.

TO TOP

Question 5:	*How often do pawn customers default?*
Answer:	At pawnshops nationwide, about 80 percent of all loans are repaid. But at King's, over 94 percent of our loans are repaid. This is partly because we hold our loans for more than two times longer than the law requires, and because our clientele is made up of many repeat customers.

TO TOP

Question 6:

Do people bring stolen items to pawn?

Answer:

For all loans a record is made of the customer's state or federally issued identification, a complete description of the merchandise, and the customer's thumbprint. This information is then presented to the police department, so it's a real dumb idea for a thief to bring stolen merchandise to us. Additionally, it is not in our interest to accept potentially stolen merchandise because the police can seize the merchandise and we lose both the collateral and the loaned money. Our staff (including a retired police officer who specialized in this area) is trained to look for signs of stolen property, to avoid such a costly mistake.

TO TOP

Question 7:

Are pawn interest rates higher than banks?

Answer:

Yes. All lenders must charge rates commensurate with size and duration of the loan, collateral, risk and recourse. Pawnshop loans are smaller in amount, and shorter in duration than loans any bank offers. The item stands as the sole collateral, so pawnbrokers also have the added expense of storing and protecting your item during the loan. There are no hidden charges as with other lending institutions. On the other hand, a pawnbroker’s cost basis is far greater. They incur cost for personnel training, appraisal, insurance and regulation not incurred by banks. And when a pawnshop customer does not repay their loans, pawnbrokers are forced to turn that “bad debt” into a retail center to recover their cost. Other lending institutions do not incur retail costs, including additional floor space, counters, sales personnel, advertising, retail competitive costs, and new merchandise cost to supplement the unredeemed goods. Please click here to see the pawn interest rates set by the state of California.

TO TOP

If you have any questions not answered here, please use our Contact page and we will be happy to e-mail you an answer.