Collateral loans on Diamonds
Updated: Mar 7
Do we offer collateral loans on diamonds? This is a question we get asked daily so let me explain why we offer loans on diamonds and how we go about valuing a diamond. Diamonds take millions of years to form and have an intrinsic value that never goes away. Diamonds have begun to increase in demand once again. So we view diamonds as any easy item to use as collateral.
The first thing we consider is do we have a business relationship and do you pick your items up consistently. If this criteria is met then we usually will offer a higher payout. Then we begin to analyze the jewelry that is before us. We pay close attention to any diamonds larger than a half a carat. This is when the four C's come into play. They are cut, clarity, color and carat which means size. We prefer accuracy and GIA certs for loans of $500 or more. We use the latest auction prices to determine the value. The pay out for gold is what it weighs based on purity such as 10K or 14K. For rings with cluster style stones or smaller stones they will not bring as much at auction and we offer accordingly. When you buy a ring at full retail you are not only paying for the materials of the ring you are paying for all of the overhead that goes with it. When you are selling all of that extra money you paid goes by the way side. So just be realistic when you come in our store. If we do end up offering a collateral loan it will be more favorable than our nearby competitors. Also be careful sending your jewelry to these companies by mail. If you live in Florida and you send your jewelry to New York and they lose it you have no recourse because you mailed your jewelry out of the state. Essentially you could lose your jewelry and some of your pieces may be sentimental. So take our advice and stay local when you need a short term collateral loan on diamonds or anything we consider of value. I have written many articles on what we take, so just scroll through and you will see for yourself. We are A&F Pawn Jewelry and Loan and we take the opportunity to serve you very serious. Give us a call today if you have any questions.