Your diamond rings are most likely the smallest items of significant value that you own. Their unremarkable size doesn’t typically measure up to the remarkable monetary worth attached to them. Many wearers rarely remove their rings because the cost of losing them would be devastating. However, when you’re in need of short-term financial relief, asset-backed loans make it possible to securely store your ring while receiving the funding you need.
If you decide to put your ring up as collateral, it pays to go in with an idea of what to expect. The average person lacks the expertise to properly evaluate the value of diamonds, but a little-advanced guidance can make the process easier to understand and appreciate. Here is everything you need to know about pawning your diamond rings.
Why Should I Cash in My Rings?
Unfortunately, income doesn’t always pour in when you need it the most. You may have unsteady paychecks or seasonal workloads that cause your money to ebb and flow throughout the year. There are also a number of unexpected situations that may require you to spend a lot of money in a short period of time:
Urgent home repair
In addition to these unpredictable circumstances, you may also want extra money to make a big purchase that you can pay off over time. Things like vacations, wedding plans, business startup costs, or home renovation projects can be funded by selling your ring or using it as collateral in a short-term loan.
Engagement rings are often worn every day, but you may have other diamonds gathering dust inside a jewelry box. Instead of letting them sit there doing nothing, you might opt to sell the collection and earn a good deal of money off of them. You may not even miss them if you haven’t worn them in a while.
Ultimately, there are many reasons that make luxury loans worth the process. Because this financing is often short-term, you’re not shouldering yourself with unmanageable debt that you can’t repay. Many customers who work with Pawngo pay off their loans in full, enabling them to take back their initial collateral. The service has proven to be a positive experience because of the number of customers who repeat the process multiple times.
How Much Money Can I Get?
The amount you receive when you pawn diamond ring collections vary considerably. Too many factors contribute to a diamond’s overall value, and your broker will take each of these into account when evaluating the jewelry.
To start, it’s estimated that a 1-carat diamond can be worth anywhere from $4,500 up to $17,000, while a 2-carat diamond value is between $13,000 to $67,000. The figures here are quite astounding, but it’s important to prepare yourself with realistic expectations. Though the amount can still be high, it’s rare that you’ll be able to receive financing at the top of these ranges.
No matter how much you initially paid for your ring, your asset will most likely be valued at way below that initial price for various reasons. Depreciation reduces any pre-owned item’s worth, whether from deterioration of the product or supply-and-demand differences in the current market. When you’re receiving a loan in exchange for your asset, the lender also needs to offer less than the market value to offset the risk in cases of nonpayment.
Despite these conditions, you can still receive a sizable cash loan if your ring has a high enough valuation. Depending on your financial needs, the amount you’re able to obtain could be more than sufficient.
What Determines the Value of My Ring?
As you prepare to sell or pawn your ring, it’s worth considering what factors may be evaluated. Your diamond has several properties that make it unique:
The clarity of a diamond refers to the number of fractures or foreign particles that are contained within the stone. Clarity is graded on a distinct scale to determine how conspicuous the diamond’s flaws are. Pure gems rate the highest, while those with significant fractures fall toward the bottom.
The cut is ultimately what gives a diamond its sparkle. It takes a skilled hand to design the stone in such a way that it reflects the most amount of light. This comes down to the depth of the diamond, its angles, and its symmetry. A professional polish completes the package to give the gem its stunning appearance.
The weight is quantified in a unit of measure known as carats. While it’s true that heavier diamonds will almost always be worth more, the actual size of the stone matters as well. Two stones of similar weights but dissimilar sizes will differ in their worth. Larger diamonds aren’t nearly as common; this rarity combined with a heavier weight yields a greater value.
The shape can come in nearly a dozen different varieties, such as round, emerald or pear. A round diamond is typically worth the most, assuming its other properties are also of high quality. Though the shape does contribute to the diamond’s value, most people select their ring based on their own stylistic preferences.
The color of a diamond is typically white. The brighter its hue, the more valuable the stone should be. White diamonds of lesser quality tend to have a yellowish tint. On the other hand, diamonds that are colored are extremely rare. This makes them worth even more than the highest grade of a white diamond.
All of these properties are evaluated together to determine the monetary worth of the stone. In addition to the diamond, the band may add even more value, depending on the type of metal it’s made from. Other factors that could influence the ring’s worth are its age and its designer.
How Can Pawngo Help?
If you decide to put your diamond ring towards asset-backed loans, our process at Pawngo is straightforward and fast. You’ll fill out an application, and we’ll prepare an offer for you. Then, you can send your ring to us, at no cost to you, for further evaluation. Should you accept our final offer, you’ll get the money wired to your bank account within 24 hours. Make monthly payments to your loan and recoup your property. It’s as simple as that.
Because we work completely online, we’re able to serve you anytime and anywhere. We don’t charge application fees, nor do we spend time on credit checks and tedious paperwork. This allows us to process loans quickly so that you can get the money when you need it.
While your ring is serving as collateral, we’ll keep it in a vault that is protected with top security protocols. You won’t have to worry about your property while you’re working on paying back the loan.
Get started with our simple process by filling out our short form. We’ll get in touch with you to further evaluate your asset and determine the appropriate loan amount or sale price. Let us help you get the financing you need as soon as possible!