A diamond brokerage helps shoppers to find the perfect diamonds at prices that are often close to wholesale, but these professionals also offer loans on diamond jewelry. Wondering if you should apply for a diamond loan or take your diamonds to a brokerage? Here are some signs the time is right.
1. You Need Money
Financial emergencies pop up all the time. You may need money for utility bills, credit card debt, medical expenses, emergency home or car repairs, or countless other expenses. Getting money quickly can be difficult, but if you have diamonds, you can use your diamond as collateral and get a loan from a diamond brokerage. In most cases, that is faster than getting a new credit card, taking out a home equity line of credit, holding a garage sale, or doing other things to get extra cash.
2. You Don't Necessarily Want to Sell Your Diamond
You can always sell diamonds, but when you work with a brokerage to get a diamond loan, you don't necessarily have to sell your diamond. Instead, as indicated above, you give them the diamonds and they give you a loan. When you repay the loan, you get the diamondback.
3. You Don't Want to Go to a Pawn Shop
The above scenario is very similar to what pawn shops do. You give them an item of value, they lend you some money and then you pay back the loan to reclaim your item. Unfortunately, however, repaying the loan at a pawn shop can get very expensive, and because of that, some people end up losing pawned items simply because they can't handle the fees and interest. If you want to avoid that scenario, a diamond brokerage may be the right option for you.
4. You Want to Work With a Diamond Expert
In addition to avoiding the hassles associated with pawn shops, you also get to work with a diamond expert when you take out a diamond loan from a brokerage. These specialists work with diamonds every day. They know how to accurately assess the value of a diamond based on its size, cut, clarity, and other features. In most other environments, you don't get that level of expertise.
5. Your Jewels Are Worth More Than Other Aspects of the Ring
Jewelry can be valued in two different ways. The pneumatic, or melt value, refers to the value that you get just from the jewels and metal in the jewelry. However, there is also a value based on the design of the jewelry. For instance, a very unappealing gold ring may take most of its value from the gold, but a well-designed piece of custom jewelry may derive most of its value from its design. If you think the jewels are worth more on their own than the jewelry itself, you may want to work with a diamond brokerage.
Share1 February 2019
When it comes to borrowing cash for a new house or a nice car, how much money do you really need? Although you might be tempted to mortgage yourself to the brim or borrow a little more than you should, the fact of the matter is that everyone has financial limits. My blog discusses the impact of borrowing more than you need, so that you can make smarter decisions with your money. In addition to keeping you out of trouble, this valuable information might also improve your quality of life and protect your financial future. You never know, it could make all the difference.
