When we think or talk about diamonds, the first thing that usually comes to mind are the glimmering necklaces, the beautiful pair of earrings, and the one of a kind engagement ring. What we don’t realize is that due to the diamond’s unique and superior strength qualities, they are essential components of other sectors beyond luxury jewelry.
Want to know other real-world applications for diamonds? You’re in the right place!
Read more →Of all the precious natural stones available in the world, nothing quite tickles a woman’s fancy than diamonds, particularly when it comes to engagement rings. As it is April’s birthstone, we thought it fitting to list some fun facts about this precious, much-coveted gem.
1. Diamonds Weren’t Always as Popular as They Are Now
Diamonds were not always the gem of choice when it came to jewelry, particularly engagement rings. It was only in the last century when it gained its reputation as the most popular gemstone used for jewelry. Ruby was the gem of choice, mainly when it came to engagement rings.
So how did diamonds outrank rubies in popularity?
One word, marketing.
When it comes to diamonds, nothing quite strikes as much awe in people than carat size– especially when viewed at face value. Sure, there are many factors that people consider when purchasing a diamond and most buyers would balance out the 4cs (carat weight, cut, color, and clarity) depending on their budget and personal preference. Some people might prefer a smaller diamond and choose to prioritize instead, it’s color (or lack thereof) and its clarity whereas others might not mind a few inclusions and a lower color grade in exchange for carat weight, which determines its physical size depending on the cut. Read more →
Diamonds might be forever, but that doesn’t mean you have to hold on to them for that long. If you want to sell them you need to know what your options are. That means understanding not just which ways are popular, but also why that is the case. What are the advantages and disadvantages of each?
Here we’re going to explore that. From there, you’ll be in a better position to choose the way that’s better for you. Sound good? In that case, enough preamble. Let’s get straight to it!
Though it wasn’t always the case, in recent years buying diamonds online has become safe, efficient and good value for money. The main reason for this is the introduction of regulation. Now, most diamond buyers are accredited by the Best Business Bureau governmental organization. (Make sure you see the BBB on their website).
Even the sending and the receiving of diamonds has become a lot easier and safer, thanks to companies like FedEx. These companies insure your package, let you track it, and make sure it arrives at its destination. That way nobody can claim nothing arrived where it is supposed to be.
Of course, some diamond sellers are better than others, so make sure you check out our online diamond buyer reviews.
A lot of people still go here. Who can blame them? They are convenient and we spend too much time online as it is. If you do decide to visit one, make sure you find the right one, though. You see, many don’t offer great value. This is because most of them don’t specialize in diamonds, which means that:
1. They might not have diamond certified staff on hand.
2. They don’t want to invest a large chunk of cash in something they might not be able to sell.
Both of these reasons might mean they can’t make you a great offer for your stone. So, it is better to sell them smaller stones, or to get your diamond evaluated somewhere else before you go.
Cash for gold sites are a lot like online diamond buyers, except that they also buy precious metals. Since diamonds and gold often come together, that makes sense. Most have certified diamond staff on hand. Do make sure you check if that’s the case on their website, of course.
Why would you want to go to one of these instead of going to a purse diamond buyer? Mainly, because of economies of scale. Gold and diamond buyers often have more business than companies that only buy diamonds. That means they have less overhead per piece.
There are numerous Cash for Gold sites out there and you should do your research. If you ask us, we’d point you to Cash for Gold Mailer. They receive top marks whenever they are reviewed.
These can be great choices for the savvy, for if you can find the right buyer you might get close to what you bought the diamond for. (Often that can be difficult with diamonds as there can be a large gap between the retail and the wholesale price).
The problem is that you also might not find any buyer. It’s more hit and miss that way. So only go this route if you’ve got time. Also, to raise your chance of selling on these platforms, you’ve got to make sure you’ve got your diamond properly certified.
If you’ve got rich friends and family, then that’s an option. Alternatively, if they don’t sleep in beds made of money, consider a trade instead of a sale. The most effective way to do that is to gather together a group of friends and have everybody bring jewelry they don’t want anymore.
Heck, turn it into a party! They can be a lot of fun. Just don’t drink too much or you might regret the trades the next day.
Also, make everybody bring their diamond certification if they’ve got them. There are a lot of false diamonds out there and if you trade something of real value for something that has none that can cost you friends.
Hopefully, this list has helped you find the way to trade your diamond. Note that this list is not exhaustive. If you don’t like any of the ways we’ve offered here, then there are other options. A search online will give you more information.
Just be careful. Naturally, the sites that want to buy will advocate their way as the best way. Don’t always believe them. Instead, find neutral sites (like our own) that can give you unbiased feedback. Then you’re far more likely to get a deal that’s good for you.
Gold jewelry and diamonds are two of the most common items a pawn shops deals with. If you are looking for some extra cash or just willing to unload some diamonds which are no longer of any use to you, then pawn shops is a very viable option.
Since diamonds are a common item in pawn shops, the brokers working in the shop are very comfortable handling them and are usually aware of the current market prices. This makes pawnbrokers one of the best options for selling or getting a loan against your loose diamonds and you will probably get a decent rate for your diamonds by going through a pawn shop (assuming you’re knowledgeable and negotiate well).
Of course, they don’t pay as much as online diamond buyers who operate at scale and know the market extremely well. If you can wait a couple days for hundreds or thousands more, we suggest you request some appraisals from our recommended online diamond buyers.
Pawn shops are typically interested in slightly larger diamonds, generally over a quarter carat. This is not to say that they would not buy smaller diamonds, but they might be less eager to get their hands on them. Generally, a larger diamond has a much better chance of getting a more respectable value since they are more rare in a pawn shop and have a higher demand with the brokers. Round and princess cut diamonds are some of the most popular cuts with pawn shops.
Pawn shops generally have hundreds or thousands of diamonds less than a quarter carat in size since it is a common size in the less expensive jewelry which is often sold at pawn shops. This is why they are not very keen on getting new ones, however if you have more than a quarter carat then any pawn shop would be interested in paying a fair price for the diamond.
Know your diamond
Diamonds having history with them always have a higher value than those that don’t. For this reason, it is always a good idea to be fully familiar with its heritage and history, if any. If your diamonds have a story to tell, having some proof for the story also goes a long way to add some credibility to the diamond’s history.
One of the best ways to get most out of your diamonds is to get certification for it. The documentation can give the pawn shops a good indication about the size, clarity, color and other properties of the diamond, and allow them to give you a better offer. One of the most credible certification organization is Gemological Institute of America (GIA) who are recognized and are accepted almost everywhere.
Appraisals can also be beneficial since they give you your diamond’s worth. However, you should always be realistic of what to expect from the pawn shops. Selling or giving those diamonds as collateral will always fetch you less than the appraisal value. Sometimes pawnbrokers would offer half or even less than the appraised value, depending upon the diamond’s rarity, quality, and other properties. Even then, getting an appraisal gives you a base price to bargain with when you go to a pawn shop to sell your diamonds and is generally encouraged by brokers as well as sellers.
Loaning diamonds to pawn shops
Pawn shops can grant short-term loans using diamonds as collateral, giving you money in a few minutes. One advantage this has is that, it is quick and does not have any risk or effect on your credit even if you are unable to repay the loan. The loan involves a small loan fee and is usually has a term of a few months.
If you are not willing to sell the item, but need some quick cash, loaning the diamonds is always an option. The value of the loan is generally calculated as a percentage of the fair market value of the diamonds and not the original retail value. Generally, the value of the loan is 50% of the fair market value but some pawn shops can go higher or lower.
Selling would often fetch you higher offers but if you wish to keep the item, then loans are a good option. Typical contract periods vary by state, but are typically around a month with a month of grace period. If you are not able to pay the loan on its due date, most pawn shops can allow you to renew your loans by paying the lending fee from the first loan. You can even pay a portion of the original loan as well and pay the rest later.
How much will you actually get for your diamonds at pawn shops?
The diamonds you bought for $4000 might only get an offer of $1200 at a pawn shop, sometimes even less depending upon the marketability of the diamond itself. On an average, pawnbrokers offer 20-40% of the diamond’s sale value. This was consistently seen throughout our experience with pawn shops as well as online reviews and opinions of consumers who tried to sell their own diamonds to pawn shops.
The price you get at the pawn shop can be helped by appraisals and certifications. Bigger or rarer diamonds also tend to get more percentage of their value than smaller diamonds. The maximum value we observed was someone getting $1300 for their $3000 diamond ring which was a few years old. These values might seem low, but do keep in mind that anything will lose its value when being sold again.
There are several price calculators available online which can give you an idea for your diamond’s sale value. Keep in mind that they might not always be 100% accurate, and a pawn shop would only give a fraction of the value these tools might quote.
As it is with any item, selling it directly to a buyer will fetch you the best price. However, if you do not have a buyer or you are in a hurry, pawn shops do offer a fair price given the market conditions. They do not tend to be lower or higher than jewelry shops but can be more flexible and accommodating to your needs. If you are looking for some pawn shops, you can use our website to find credible pawn shops known to trade in diamonds.