Everything about Selling Diamond Ring at a Pawn Shop

You may get a lower value of diamond ring if you sell it at a pawn shop. Selling jewelry pieces to a trusted online buyer will get you a greater value. In case you have cancelled your engagement, or got separated from your partner or want to change your old ring to something more fashionable, there might come a moment wherein you need to sell your diamond ring. 

The Business Model of a Pawn Shop 

Pawnbrokers have been there for centuries, and they are working on a business model that dates back to ancient Greece. The business model of pawnshops is quite straightforward. You can visit a pawn shop to sell something that is valuable. The shop then proffers you a loan using the jewelry piece you have given as security for the loan. This procedure is known as pawning the item. Once you repay the loan along with interest the pawnbroker charges, they’ll return the item you have given as security. 

If you fail to return the amount you took, then, in this case, the pawnbroker keeps the jewelry piece you pawned and sells it to recover their loss. 

Usually, any loan that you will get from a pawnbroker will be for considerably less than the piece you are pawning is worth. In case you pawn a necklace that has a used worth of 1000 dollars, the pawnshop may provide you with a loan of 250 to 600 dollars. 

The loans taken from a pawnbroker are likely to be short-term, and a majority of them have a reimbursement deadline of 6 months. 

What Are the Other Alternatives to Selling Your Ring to A Pawnbroker? 

If you want a healthy amount of cash for old diamond ring, you can choose any of the following options. 

1.     Sell My Diamond Ring on eBay 

You can choose to sell your diamond ring privately on any online platform, like eBay. This will probably help you to regain the maximum value of the ring’s original retailed price. This procedure can be a little time consuming, and it is not a simple task to find a buyer for a used engagement ring. 

2.      Selling the Ring to A Company 

Another option to resell diamond ring for cash is to go for a company specialized in purchasing pre-owned diamonds. These companies or enterprises, with the help of a lab, will examine the diamond. After that, on the basis of quality and worth, they’ll offer a price.