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5 Tips For Pawning A Diamond To Help You Get The Best Deal
Jul 24, 2020
Pawning Diamond Jewelry
Pawning a diamond is an easy way to make some quick money. Whether you decide to sell the diamond or use it as collateral for a loan, you need to be careful with the decision as considerable money is at stake.
If you’ve never pawned a diamond before, don’t worry as the process is quite straightforward. However, it also pays to be prepared, so here are a few tips and points to keep in mind to ensure that you get a good deal.
1. Know your diamond’s value
The first thing you should do is find out the value of your diamond. Pawnbrokers can help you do this, but it’s a good idea to approach a jeweler to get an unbiased opinion. They will be able to determine the real value of the gem and explain to you why it’s worth that amount.
Apart from that, you should also look online to find the current going rate for diamonds. Doing so will help you understand how much the stone is worth, which will be helpful when negotiating with the pawnbroker.
2. Understand your requirements
Other than understanding the value of your diamond, you should also know what you are looking for. For example, you should know how much money you are looking to make out of the diamond—down to the final cent. This will allow you to figure out whether the diamond is enough to get you the amount that you need.
In other words, consider exactly how much money you require so that you can determine whether or not the diamond will be enough to get you that amount.
3. Create a realistic timeline
If you decide to take out a loan with your diamond as collateral, then you must consider the timeline that you are willing to accept. As with most loans, interest rates can become expensive, especially if you opt for long payment terms.
As such, consider how much money you’re willing to pay as interest and create a timeline that fits into that equation. Many pawnbrokers provide flexibility in this regard, so you should have no problem finding a deal that works for you.
4. Research local pawnbrokers
While you might be tempted to head to the nearest local pawn shop, take your time to look at others. If you have never been to a pawn shop before, look online and see what is available. Do not forget to check the reviews as well, as you would want to work with a reputable pawnbroker that offers fair prices.
If possible, look for shops that specialize in jewelry. This is important because they will most likely give you the best deal.
5. Bargain and negotiate
Once you do go to a pawn shop, now’s the time to start negotiating. Generally, pawnbrokers will give you around 70 percent of the diamond’s value since they need to make money, too.
Once you come to an agreement, be sure to put everything into writing. Document every detail of your transaction, as a verbal agreement is neither reliable nor safe. Get it signed to ensure that both parties are at an understanding. Should any issues arise in the future, you can refer to the document to guide your next steps.
Conclusion
By keeping these tips in your mind, you will make the most out of your pawned diamonds! That said, once you get your money and start spending, always remember that you must pay back on time if you want to get the gemstone back.
If you go over the agreed period, the pawnshop is allowed to sell the diamond. While you might still be able to repurchase it even after you have passed the date, it isn’t guaranteed. Besides, the stone might hold significant emotional value to you or someone you care for, so you need to be diligent.
Are you looking for a reliable and reputable pawn shop in Kentucky? River City Pawn Shops can get you the money you need quickly and hassle-free! We have multiple locations that are ready and happy to serve you!
