Pawn My Diamond – Everything You Need to Know
If you are in need of immediate cash there is nothing that makes more sense than using your assets. Going to pawnbrokers in search of getting money in return for assets as collateral seems a convenient option to many.
If you choose to pawn your assets, the pawnbroker would keep the asset safe with them and will return it once you have paid the complete amount of the loan along with the interest charged. The interest rates are not fixed and may vary; therefore, it is better to do your homework before you take this route.
Many websites such as PawnGuru are extremely helpful in this aspect as they successfully give you a complete picture of what to expect.
Value of Diamonds
At first, the pawnbroker will assess the value of your asset and will give you an estimate of the amount that they can offer. A pawnbroker will take into consideration the amount that they can raise through the sale of the diamond asset in case you fail to pay back the loan amount.
To reach this estimate the following factors are given importance:
Clarity of the Diamond
The Color of the Diamond
All of these factors combined help the broker come up with an offer that is beneficial for both you and them.
How to Pawn Diamonds
Keeping in mind the interest rates that are charged by the pawnbrokers, it is not always an ideal solution to pawn your diamonds if you are in need of money. However, if you are confident in your ability to pay back the loan, pawning your assets might be a comparatively convenient option than others. Here are the different steps that you have to follow when looking to pawn your diamonds.
Assess your needs
Before you pay a visit to the pawnbroker it is essential that you figure out what your requirements are. Find out how much money you want and come up with an exact amount. This will help you discover the number of diamonds that are needed to get that particular amount. Without doing sufficient homework, you can find yourself pawning more than what was necessary and eventually having to pay more. Thus, determining your exact need should be the first thing that you do in such a scenario.
Get an Idea
Do not go the pawnbroker yet. It is recommended to visit another expert such as a jeweler to help you determine the value of the diamond that you are considering of pawning. Not that the jeweler has more experience than your local pawnbroker but this homework is required so that you can reach the right price in terms of the value of the diamond. You can also visit online sites such as PawnGuru to get an exact estimate. Pawnbrokers generally provide 60%-70% of the true value of your asset. By doing this research beforehand you will be able to get the best deal out of your pawning experience.
Accurate Time Period
Next, you should determine the time that you will take to pay back the loan. Do this while keeping your approach realistic. Also, add a few more days to whatever time period you come up with at the end. This information will help you deal with the pawnbroker in an effective way.
Research for local pawnbrokers and do not make a hasty decision. It is recommended to pay visits to a number of pawnbrokers and decide on the one that has the best deal to offer. Some pawnbrokers might not be very flexible with the time given to pay off the entire loan. It is therefore beneficial to choose one that is flexible.
There is no need to say yes to the first deal that is offered to you. Brush up your negotiation skills and use them with the pawnbroker. Let them make the first offer to you and then try to work your way down to reach an offer that is convenient for both of the parties involved.
Pawnbrokers are used to having negotiation conversations often and therefore you might end up with a better deal than the one you expected. Because of the research that you have done earlier, you should be confident about the value of your diamond and should not let any pawnbroker tell you otherwise. Since you will be placing your asset as collateral it is important to look out for the trust factor of the pawnbroker.
Words hold no value when it comes to lending money and placing items as collateral. Therefore, it is extremely important that you draw up a contract and have proper documentation to support the deal that has taken place. Do not forget to have the document signed and clearly outline all the details of the deal. This will serve as a safety net in case there is any dispute that takes place in the future.
Do not assume that the pawnbroker will wait for you to return the money after the deadline has passed. There is no guarantee of your diamonds staying at the pawn shop for long after the date has passed. Therefore, it is advised to return the loan amount as soon as possible and within the time frame decided upon at the beginning of the deal. If the pawnbroker decides to sell your diamonds to another dealer you might not get the chance to have them back.
Pawning your diamonds to a pawnbroker is an excellent way of getting access to cash in a situation of emergency. Also, if you keep dealing with a pawnbroker, you will be able to establish a trusted relationship with them and can turn to them in times of need. Having a pawnbroker who you trust and have a relationship with is extremely helpful.