February 08, 2020 - Jewelry & Luxury Items
Have some diamond jewelry you’re ready to pawn, but not sure if it’s worth it? Turns out diamonds are one of the best things to pawn, and here’s why.
There’s a good chance you can make a quick buck by pawning your diamond jewelry. But before you go to the pawn shop, here’s some information on how you can figure out your diamond’s worth before pawning it.
The value of a diamond is based on the 4 Cs, which break down to Carat or the weight of the diamond, color meaning the amount of tan or yellow tone in the jewel, clarity which are any defects that make the diamond less clear, and lastly cut, which is the manufacturing quality of the diamond when it was cut into shape.
It’s also important to know that small diamonds are common, whereas larger diamonds are less common and hence worth more.
You could be paid anywhere between $100 and $600 per carat of diamond for stones that are larger than .25 carat weight, this also depends on the color and clarity of the jewel.
If one diamond is larger than 1.01 carats then the price will increase dramatically. If you have a single diamond that’s over three carats and is also clear, colorless and not lab enhanced, you could be looking at $3,000-$10,000 per carat weight, but this all depends on the total size of the stone.
But if you have a larger diamond that is off color and has bad clarity, it won’t be worth as much. Consider that it’s worth will be reduced by at least 50%.
If you have a diamond that weighs less than .25 carats, be aware that it will likely be worth a lot less, because these stones are much more common.
Smaller diamonds can be worth about 25 cents to a dollar per point, as long as they are full cut stones. Know there are 100 points in a carat.
Pawn shops love to get larger higher quality stones because then they can sell them to a diamond broker. Diamond brokers are connected to thousands of jewelers and pawn shops that for a small fee can move diamonds back and forth. This is the easiest way for pawn shops to sell large diamonds.
If you sell a small stone to a pawn shop, then the shop will sell your stone to a group of specialized diamond buyers. These buyers ship the small stones back to where the jewelry is made, like India.
If your stone is rare, there are also diamond auctions where your pawn shop might take your stone. Here they can sell all sorts of stones from larger rocks to even the smallest chips. Pawn shops love to unload their diamond inventory at auctions.
Now that you know that diamonds are one of the best things to pawn, take your unwanted diamonds to a pawn shop today. Do your research before so you know what is a fair price for them. For more pawning tips or information on diamonds, check out our blog.
David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in 2015. He started PawnGuru to build a better tool for pawn shops and consumers to connect.More Articles