The Dangers of Selling Jewelry to a Pawn Shop

by SouthFloridaJewelryBuyers

Want to sell a diamond ring? Here are some important tips to help you get the most money, along with reasons to avoid pawn shops when you're selling jewelry.

Let's say you have a nice diamond ring that you've been holding onto for awhile. You're ready to sell, but you aren't sure what it's worth. You don't even know where to go to get an offer. Rather than learning more about the ring or getting multiple offers, you decide to sell your ring at the local pawn shop.

So, what's wrong with this situation? A lot, actually. Let's go through this scenario step-by-step to learn how to sell a diamond ring the right way and why you should stay away from pawn shops at all costs.

Image credit: Ljv at Flickr

Do: Learn More About Your Ring

The First Mistake

Before selling jewelry of any kind, your first step should always be learning more about what you have. If you aren't an informed seller, potential jewelry buyers may not take you seriously. You can have the ring appraised, although it's important to remember this is usually a value placed on the ring for insurance reasons. Ask the appraiser what they'd actually pay if they were going to buy it to get a more realistic number.

If your ring has a large diamond, it may be worth the time and money to have the diamond itself graded through a gem lab like GIA. This diamond report will give potential buyers everything they need to know about the diamond, including its clarity, color, carat and cut. This can improve your odds of getting a higher price for your diamond ring and make you a much more informed seller.

Do: Get Multiple Offers

The Second Mistake

The next mistake in that scenario was failing to get multiple offers on the jewelry before selling. It's always a good idea to compare prices from multiple jewelry and diamond buyers and there's certainly no shame doing it. Try to get offers from a variety of sources as well, including buyers who specialize in diamonds and those who work more with gold.

Do: Avoid Pawn Shops

The Third Mistake

Finally, the last mistake in this scenario is going straight to a pawn shop to sell jewelry. Pawn shop employees are not professional jewelry buyers and they lack the experience to evaluate diamonds. They're notorious for offering as little as 20% of the value for your jewelry. What's more, in Florida, there is a mandatory 30 day hold period on all items purchased by a pawn shop. This means they will safeguard their investment by buying low, just in case gold prices go down before they can sell your ring.

To learn more about selling gold in a pawn shop, click here: How "Selling" Gold Jewelry Works in a Pawn Shop

Do Your Research and Get the Most Money

Before you sell jewelry, make sure you learn as much as you can about what you have and get a diamond report if your jewelry has a large diamond. Get plenty of offers from jewelry buyers in your area and avoid pawn shops if you want to get the most money you can. If you've never sold jewelry before, it can be tempting to just go with the first offer you receive. Hold out and do your research to get what your jewelry is truly worth!

At South Florida Jewelry Buyers, we specialize in diamond jewelry and loose diamonds and offer unbeatable prices. We also buy all types of gold and platinum jewelry as well as watches and offer free consultations with offers that stand for one week. Stop by and have your diamond ring evaluated by a GIA-certified gemologist to get the best price in town!

Updated: 12/21/2012, SouthFloridaJewelryBuyers
 
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