How Your Diamond Jewelry is Valued for Your Loan?

Diamond’s ValueDiamonds are the most precious gemstones in the world. And because they are rare, they cost a lot especially the good quality diamonds. In times when you are cash strapped, your diamond can save you the headaches. By this, it mean, you can actually get a loan from a pawn shop and make your diamond as collateral.

In reality, once you bought any type of jewelry including those that have very precious gemstones, they automatically become 25% to 30% cheaper, according to experts. So don’t highly expect that your expensive diamond jewelry will command almost the same price as when you bought it. The pawnshop will still need to reassess its quality and the result will be the basis for its pawn cost.

What’s Your Diamond’s Types?

Like they say, a con gemologist can tell you lies about your diamond but you can’t tell any gemologist how much your diamond should cost to sell or pawn. If you want to pawn your jewelry, you have to take it to an accredited gemologist, have it revalued and ask for an authenticated gemological report. Even though you have a certificate that came along when you bought your jewelry, still, the pawnshop’s gemologist will have to revalue it.

To equip you a little knowledge about the types of diamonds that are now popular on the market, do some research. This will provide you ideas the kind of diamond you possess and can roughly estimate how much it could be pawned.

How Gemologists Classify Diamond and their Cost?

Experts classify diamond’s value based on four qualities, such as:

  • Carat. This is the mass weight of any gemstone including diamonds. Large, heavy diamonds with pure quality can be pawned at a good price.
  •  Color. Ordinary colors are yellow and brown. Blue, orange, gray, brown, and black diamonds are considered fancy colored but also precious. Yellow are the most common but the purest are the transparent diamonds.
  • Clarity. The clearer the diamond, the less the defects. Pure transparent diamonds have no inclusions, marks, traces of carbon and cloudiness.
  • Cut. This describes the diamond’s symmetry, unique proportions, and the way it was polished. With a perfect cut, this means greater brilliance. 

You can visit a number of pawn shops in your neighborhood and ask for an appraisal if you want to get a loan using your diamond as collateral and compare their offers. Check their loan forms and see their interest rates and conditions. Be sure to check the shops’ accreditations before you pawn your jewelry and make sure the documents given to you are all authenticated.