Gold Rush - F.A.Q.'s about Pawnshops and how a pawn works!



Frequently Asked Questions!




We have tried to provide the answers to the most commonly asked questions we receive at Gold Rush.

So if you have a question and do not see the answer below, just give us a call and we will be more than happy to assist you.






What is a Pawnshop?

How long have Pawnshops been around?

What does it mean to pawn something?

Why would someone go to a pawnshop to get a loan?

What can I pawn?

How do you determine the value of my item?

What do I need to get a loan?

How long is the pawn for?

I don't want to pawn my valuable, can I sell it to you instead?

Can I just stop in and buy something from your showroom?

Besides pawning, selling and buying, do you offer any other services?

Do I have to pay shipping on an Ebay item?







What is a Pawnbroker?
A pawnbroker (Gold Rush) is an individual or business (pawnshop) that offers secured loans to people, with items of personal property used as collateral. The word pawn is derived from the Latin pignus, for pledge, and the items having been pawned to the broker (us) are themselves called pledges or pawns, or simply the collateral. If an item is pawned for a loan, within a certain contractual period of time the pawner (you), may purchase it back for the amount of the loan plus some agreed-upon amount for interest. The amount of time, and rate of interest, is governed by law or by the pawnbroker's policies. If the loan is not paid (or extended, if applicable) within the time period, the pawnbroker has the right to sell the item to another buyer. Unlike other lenders, though, the pawnbroker does not report the defaulted loan on the customer's credit report, since the pawnbroker has physical possession of the item and may recoup the loan value through an outright sale of the item. Pawnbrokers also sell items that have been sold outright by customers to the Pawnbroker.


How long have pawnshops been around?
Pawnshops are mankind's oldest financial institution and first emerged 3000 years ago in Ancient China as a method of granting short-term credit to peasants. In the early centuries, people pawned their clothing since clothes were often the most valuable items they owned. Pawnbroking thrived in ancient Greece and Rome by providing merchants a way to get small business's off the ground. During the Middle Ages, some restrictions were placed on charging interest by the Catholic Church, which halted the growth of pawn shops. These rules were relaxed in the 14th and 15th centuries in Europe as short-term credit became an important way of financing business endeavors and granting temporary aid to the poor.

Prominent families such as the Lombards of England and the Medicis of Italy became known as money-lending families. In 1388, England's King Edward III famously pawned his jewels to the Lombards to help finance his war against France, and Queen Isabella of Spain is said to have put up her royal jewels as collateral to fund Christopher Columbus' expeditions to the New World.

During the Great Depression era, when banks weren't lending, pawn shops were among the only institutions offering cash to people who simply could not make ends meet. In the past 100 years, the number of pawn shops have continued to grow throughout the United States. Today, in big cities and small towns, pawn shops still operate as mini-banks for millions of Americans, who for what ever reason, depend on pawnbrokers to help them meet their financial needs.


What does it mean to pawn something?
To pawn something means to get a loan against a valuable item. Gold Rush will give you a sum of cash (loan), on a item you bring in, for a certain length of time, leaving the merchandise with us until the loan has been paid in full.


Why would someone go to a pawnshop to get a loan?
Gold Rush offers the consumer a quick, convenient and confidential way to borrow money. A short term cash need can be met with no credit check or legal consequences if the loan is not repaid. A customer receives a percentage of the value we believe the collateral would bring in if sold. The loan to collateral ratio varies, although a loan of about 50 percent of the resale value of the collateral is typical. In other words, Gold Rush feel your loan is "paid in full" at the time it is made.


What can I Pawn?
You can pawn anything you own that is valuable, items like Jewelry, Electronics, Musical Instruments or Tools. We are always interested in gold and we will loan you cash for your necklaces, rings, bracelets and earrings. In fact, you can even pawn your gold teeth. You can pawn televisions, stereos, DVD players, video game console systems and games. Other examples of electronics you may want to pawn include cell phones, digital cameras, CD players, radios and camcorders. You can also use musical instruments as collateral for a loan! You can pawn anything from guitars or band instruments to amps or DJ equipment. Power tools are excellent items to pawn because they are always in high demand. You can bring in tools like drills, chainsaws, sanders, air compressors and generators.

Remember to bring all cords, remotes and chargers with you. We will verify that everything is in working condition before we agree to make the loan. If these items are missing components, or are in bad shape, we may turn you down.

The merchandise we accept as collateral varies and may depend on the marketability of the item. Lets say you have an unused air conditioner laying around and decide to use it as collateral for a loan but it is the middle of winter, we may decline, as no one will be needing one at that particular time. You can save yourself some time by calling ahead to confirm that your valuable item can be pawned for cash.


How do you determine the value of my item?
There are many factors that play a role in determining the value of an item. The age of the item, current condition, market value, and ability to re-sell, are all taken into consideration. The market value of precious metals changes daily so this will affect the appraisal as well.

General merchandise is visually inspected, plugged in and turned on to ensure it is in good working condition. Accessories such as remote controls and original cables will add to the value of an item.

Additionally, jewelry is visually inspected (using a jeweler's loupe), weighted and tested in order to analyze its value. We perform a special test on all precious metals for authenticity and to evaluate the karat of gold. All diamonds are electronically tested by our GIA trained diamond grader for the 4 C's: cut, color, clarity and carat, noting any flaws. .

Then we use all the research tools we have at our disposal: blue books, catalogs, Internet search engines, and our own years of experience to determine its worth.

Furthermore we contemplate the supply and demand or desirability of your item. Perhaps a new product has made it obsolete or even decreased its value. A video game systems that was worth $300.00 two years ago may be practically worthless today. With a new system on the market, an outdated platform isn't going to be in high demand. Another example would be a DVD player, since they have become increasingly popular, the VCR has depreciation in value. Therefore if you brought in a VCR, you can surely expect a much lower appraisal value.

After taking all the above information into consideration, we will give you an appraisal value that is inline with the general marketplace for pre-owned merchandise. We base ALL pawn loan amounts on the resale value of your item so we work diligently to get you the most money we can.


What do I need to get a loan?
Basically you must be at least 18 years of age, have an item of value that you own and a picture I.D! 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 customers name, address, type of identification provided to the pawnbroker, a description of the item, amount lent, maturity date.


How long is the pawn for?
Thirty days!


I don't want to pawn my valuables, can I sell them to you instead?
Absolutely! If you own something that is of value, for example a piece of gold jewelry and its in good condition, you can get some quick cash without pawning it! All you have to do is SELL the item to us. You won't get your stuff back, but you will have the cash to pay a bill or two.


Can I just stop in and buy something from your showroom?
Certainly! We have a showroom filled with jewelry, electronics, musical instruments and more, just waiting for you to BUY. All the items we have in our showroom are at a fraction of the cost of retail so if your looking for an incredible deal, check out what we have at Gold Rush first! Merchandise is always moving through our shop so stop in often because you never know what you will find!


Besides pawning, selling and buying, do you offer any other services?
Of course! For your convenience we have additional SERVICES like jewelry repair, jewelry cleaning and layaway's.


Do I have to pay shipping on Ebay items?
It depends on if you live close enough to our shop which is located at 19755 S. Halsted Street in Chicago Heights, Illinois! All Items purchased through Ebay can be picked up in person and you will not be charged any shipping fees. In order to make it easier, if you win an auction and opt to pick up your item at our shop, just send us an email and let us know!