In general, pawn shops and jewelry companies that offer collateral loans on jewelry operate under the same principles. You bring in an item of value which is appraised by a worker at the store. They then offer you a loan price and/or a purchase price. You can decide whether the loan or purchase price suits your needs or not. If you decide to take a loan on your item, the store will hold it while you make payments on your loan, until you have paid your loan in full.