8 Tips For Pawning Diamonds

Taking your unwanted jewelry to a pawn shop is an excellent way to reduce clutter and make some extra cash. With that said, if you have no pawn shop experience, things may not go as smoothly as you would like. Instead of crossing your fingers and hoping for the best, pay close attention to the following 8 pawning diamonds tips.

1. Inquire About The Pricing Method Used

While there are some pawn shops that use things like weight, color and clarity to determine how much diamonds are worth, others use a point system. This is when a dollar value is paid for each point they feel a diamond is worth. Generally, one carat is equal to 100 points. This means that a 3-carat ring that is offered to a shop that offers $1 per point will fetch $300. It is important that you ask about this so you are clear about what is being offered to you.

2. Comparison Shop

One of the most important of the 8 pawning diamonds tips is quite simple: You need to shop around before determining who to do business with. Every place will not offer you the same amount and the key is to maximize the amount of cash you receive. Ideally, you should get quotes from a handful of pawn shops before making a final decision. Even if the first one you come across seems to be offering a favorable deal, you should consider others before making any moves.

3. Keep Emotions Out Of The Deal

If you are pawning your grandmother’s diamond because your home is about to be foreclosed on, you cannot expect the person you are dealing with to care about that. The reality is that pawn shop staff is trained to be objective and focus on making a deal, period. Going into the store with tears in your eyes and telling a sob story will not work in your favor.

It is also important that you don’t allow emotions to cloud your judgment. Sentimental value will not raise the amount you will be offered. Never decline an offer randomly because you believe it should command more money. Be wise and think logically or you may end up having someone decline to make the purchase.

4. Pawn Or Sell

Trying to sell a diamond is not easy, especially if you are working within a time crunch. This is why some people decide to pawn their jewels instead of trying to sell them. With that said, the pawn shop has to make a profit, so they will offer you less than your diamond is actually worth. If you can wait a while, you might want to try your hand at selling it to someone directly.

Another option would be to find a pawn shop that is willing to sell it on your behalf. The only issue here is waiting to get money since the process can take a little while. With that said, it is likely they will sell it much sooner than you would if you try doing it on your own.

5. Choose A Reputable Shop

One thing that you should focus on is finding a pawn shop that is well known for being fair with customers. You do not want to find a place that looks like it is straight out of a 1970s crime film. While those places will generally make deals without asking too many questions, you will have to worry about getting a good deal.

Another reason a reputable dealer is important is because some people who pawn diamonds want to go back to get them later. You do not want to leave your valuables there and the shop has disappeared by the time you return.

6. Dress Well

Many will say that this does not make a difference, but dress well when you are out pawning your diamonds. People who are dressed down are likely to be offered less on the sale. This is probably because you appear to need the money more than someone who is dressed up. While you don’t have to go and pull out a tuxedo, you should certainly dress the same as you would if you were headed to the office, as opposed to a baseball game.

7. Be Mindful Of Payments

If you want your item returned to you later, you will have to make payments on a regular basis. A shop has the right to sell your property as soon as you miss one payment, so make sure that you are extremely careful. If you are aware that you cannot make a payment for some reason, give them a call and see if a deal can be worked out. This is a far better idea than waiting for the inevitable.

8. Check Reviews

People these days love to harp on about their experiences, so use this to your advantage. Look for reviews from those who have done business with any shops you are considering. If everything you read is mostly favorable, feel free to move forward. On the flip side, if things don’t sound too great look for someone else to do business with.

These are the only 8 pawning diamonds tips you will ever need. Keep this information at the forefront when you are trying to decide which pawn shop to do business with. Otherwise, you may end up having an unwelcome experience.