Fifty percent of all marriages in the United States end in divorce. If you are lucky enough to keep your marriage going, then you are very fortunate to have found the right person, indeed. However, if you are part of the divorce rate statistic instead, you may be looking for extra cash to pay the divorce lawyer or pay bills you cannot afford to pay right now. Your diamond ring could bring you a pretty penny, if you know how to unload it.
There are lots of avenues you could go with this, but most people choose either a pawn shop, or a diamond broker. Both provide nearly instant cash, but you are more likely to get more money from the diamond broker. If you're considering pawing an engagement ring, keep reading.
The Pawn Shop Will Only Give You Half the Value
Most pawn shops count on customers' needs to get quick cash. They know that the hastier customers will unload their valuables faster. The pawn shop can offer half of the total value of any one item to these customers and the customers will take it. The more savvy pawn shop customer knows that the pawn shop associates are trained to offer low, so that there is a little wiggle room for bargaining. Still, you will never get full value for your diamond ring, since most pawn shops buy such rings for the total worth of the gold, and not for the diamond itself.
A diamond broker can offer you the full value of the ring, as it is appraised, or purchase just the diamonds and leave you with the gold ring to sell elsewhere. It is entirely up to you. Additionally, the fee that a broker charges is generally charged to the next buyer, and not to you, the seller, which is why you can get more money for your ring with a diamond broker than you could with a pawn shop.
Most Pawn Shops Cannot Appraise the Value of Diamonds
Most pawn shops cannot appraise the value of the diamonds in your ring. They are not gemologists, and therefore cannot appraise the value of any gemstone. Pawn shops that can actually afford to hire a professional gem appraiser can only do it on a very part-time basis, as the salaries of gemologists are quite high.
A diamond broker, on the other hand, typically is a gemologist and can appraise the value of your diamonds. This is very helpful from the standpoint that most owners or holders of diamond rings have no idea of the quality grade of diamonds they have. The diamond broker can tell you right away if your former spouse paid far too much for a flawed ring, or paid the best price for a nearly perfect ring. It is also smart to ask the diamond broker for his or her evaluation in writing, in case you change your mind now about selling but want to sell the ring later.
The Pawn Shop Will Double Its Money When It Sells Your Ring
Scary, but true. Most pawn shops will double their money back by selling your ring to the next person. In fact, if you visit their jewelry case the following week, you will see exactly what the pawn shop is selling your ring for. This is how pawn shops make their money and stay afloat.
A diamond broker may ask for a brokerage fee of ten to twenty percent of the sale price, but will never undercut the value of your diamonds or the ring. The fee is charged to the buyer who has hired the diamond broker to find especially nice diamonds and/or a ring. You get the rest of the cash, which is much more than what the pawn shop gave you, and almost always more than what the pawn shop will earn by selling your ring at a discounted price.