February 22, 2018
Jewelry, especially diamond rings, are one of the best items to pawn if you have one. Diamonds are easy to sell, convenient to handle, and don't make your life harder when they're in pawn for a bit. Plus, since diamonds are small, the storage fee will be lower than if you pawned something big like a TV or a saxophone.
A pawnshop will offer you a higher payment when they are outright buying your ring because then they can sell it sooner. For a pawn loan, your offer will be a little lower. This is because pawn shops would have to hold your ring for a long time before they could legally sell it if you didn't pay back your loan.
The wholesale value of your diamond ring is the most important factor for figuring out how much a pawnshop will pay you for your diamond ring. This is a painful topic because diamonds are not worth as much as people think. Jewelry stores have insanely high markups on diamond rings—ranging from 253% to 336%!
In other words, if a jewelry store sells a diamond ring at retail for $9,000, the diamond is actually worth closer to $3,000. The design or brand can sometimes add some more value to the piece but pawn shops base their offers on the wholesale value of the diamonds.
Pawn shops have to value diamonds at the wholesale price because if the customer doesn't repay their loan then the shop will sell it to a wholesaler. This is how pawn shops get back the money that they loaned out.
At Mr. Deals, Marcus is our in-house diamond guru. He will inspect your diamond to determine its authenticity and quality for you. Read on or watch the video below to learn more about the factors that determine a diamond's value
The quality of a diamond depends on these four factors: carat, cut, clarity, color, and hue.
The carat is the weight of the diamond, and this plays a crucial factor in determining the value of a diamond. Higher carat diamonds have a higher weight, which means they are bigger diamonds. Bigger diamonds are generally worth more.
The cut of your diamond will also play a large role in how much a pawn shop will pay for your diamond ring. Round cuts are usually more in-demand and thus will push the value up. Round cut diamonds shine the most so there's usually a premium paid for this particular cut of diamond.
If your diamond has a specialty cut, such as a princess or emerald cut, it might be worth less because of the lower demand.
Diamond Clarity, Color, & Hue
The clarity, or purity, of your diamond is another factor your broker will use during the valuation process.
As the coloring of diamonds can change and vary, the actual color of your diamond will have an impact on the value. For example, blue or pink diamonds, which are extremely rare, will command a very high price tag.
The hue, or and how pure your piece is, will be another factor. Essentially, the purer your diamond, the more valuable it will be. Diamonds with a slight off-white yellow hue are typically worth the least.
People trade precious metals as commodities on the markets on a daily basis. This plays a crucial role in the ever-changing prices of commodities like diamonds and gold.
There are a lot of places to check the current price of gold online. There is a similar market for diamonds. The market value of these commodities factors into the value of your diamond ring.
Pawn shops sometimes try to sell diamond rings in their store but they can sometimes take years to sell. As a result, the solution for pawn shops who buy diamond rings is to dismantle the ring and sell the parts as commodities. This is how to determine the value of your diamond.
It's almost impossible to get an exact figure on the price of your diamond without taking it to a diamond expert like Marcus at Mr. Deals. We went over a lot of variables like the quality of the diamond, the weight of the diamond, and the commodity marketplace.
To get a specific offer, pawn shops have to inspect the diamonds for quality first. Call Mr. Deals and ask for Marcus to schedule your diamond valuation today!
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