When trying to gather as much cash as you can, should you resort to pawning a diamond ring or selling it? The answer depends on many factors including the following:
How Much Cash You Need
Selling your diamond ring is definitely better cash-wise. You should be able to get a better deal because you’re giving up your entire claim on the item. With pawning, however, you’re only using the diamond ring as collateral so the pawnshop would not pay as much.
If you need the money urgently without worrying too much about the actual price paid to you, pawnshops would be better. They are open practically any day and would welcome all types of valuable jewelry. Selling your diamond ring, however, may take time as you look for a willing buyer.
Also, note that pawning a diamond ring can be expensive in the long run. You will be paying a monthly interest rate in order to keep ownership of the ring. If you’re late, you might have to pay interest on top of the interest rate.
Of course, let’s not forget the fact that pawning lets you retrieve the item at some point. If it has a sentimental value to you, then pawning should allow you to get it back at some point. This isn’t always the case with a sale, especially if there is no right of repurchase on your part.
Pawning your ring is an easier way of getting money – but selling it off will have higher margins of return. Bear in mind, though, that the cash would depend primarily on the diamond itself and the precious metals it is attached to. The karat, size, clarity, and flawlessness of the diamond will all be considered when judging its value. Hence, it is important that you are aware of the current going rate for diamonds of a certain quality to ensure fairness.