Pawn Shop Vs. Jeweler: Selling A Diamond Ring

You have a diamond ring that is burning a hole in your pocket.  You want to get rid of it, and you want to get rid of it now!  You can really use the extra cash, and at the current moment, you have no need for the ring.  How do you score some cash for the ring?  You’ve heard of pawn shops, but never used one.  You’ve also heard that some jewelry stores may be interested in purchasing items.  Which jewelry buyer should you choose?

Pawn Shops

There are two ways to use a pawn shop.

  1. The first way to use a pawn shop is to get a loan.  This is the option you should consider if you are looking to get money, but are not committed to giving your ring up forever.  A pawn shop will offer you a loan on your ring, and use it as collateral.  In this situation, they lock the ring away and give you a percentage of what the ring is worth.  You walk away with cash.  There are a couple catches to this.  You need to pay that cash back.  You will also have to pay it back with interest.  Interest rates at pawn shops tends to be very high.  If you are 30 days overdue with a payment, the pawn shop can sell the ring. 
  2. If you are absolutely positive you don’t want the ring in your life anymore, ask the pawn shop what they will buy the ring for.  Be prepared to get a number lower than what the ring is valued.  A pawn shop wants to make a profit.  There is not a guarantee of the amount the pawn shop will actually get for your ring, or how long it would even take to sell. 

Jewelry Stores

Before you pack up your ring and go store to store trying to find someone to give you a fair price on your ring, make some phone calls.  Not all jewelry stores are interested in purchasing jewelry.  You are likely to have the best luck with a local jewelry store, as opposed to a national chain. 

If you find a store that is interested in possibly making a purchase, take your ring in.  The jeweler will examine it.  If they are interested, they will ask how much money you are looking to get from it.  When determining whether or not to make the purchase, the jeweler will have to consider what inventory they already have, and whether or not it is likely the ring will be resold. 

The Big Decision

Deciding how to sell your ring is completely up to you.  One man’s trash is another man’s treasure.  Whether you sell your diamond ring to a pawn shop or a jeweler, you are likely going to make someone very happy when they snag your deal!

Author: Randy Ross

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