So your looking to sell or pawn your diamond ring for cash? Let’s help you figure out the process and give you some helpful information to make sure the process goes as smooth as possible.
If your looking to pawn your diamond ring try to find the original paperwork for the diamond or ring and any appraisals you might have. The retail replacement appraisal price will be much higher then the wholesale price of your ring and diamond, but the paperwork will help the pawn broker figure out what type of diamond you have and he will be better able to price it correctly.
Diamonds are not traded or sold the same as precious metals or bullion. Diamonds after acquired by a jewelry store or pawn shop will have a wholesale bid price and a wholesale offer price. Pawn shops usually do not for obvious reason buy diamonds on the wholesale offer price or pay retail. The wholesale bid price is the price that the dealer can liquidate the diamond to another wholesale diamond buyer who will put the diamond into his/her inventory and list it at the wholesale offer price. Sometimes the spread between the wholesale bid and wholesale ask price is 30-40% or even greater depending on how quickly the diamond can move.
The diamonds that usually have the tightest spreads are rounds and then it will depend on the other 3 “c” as well (Clarity, Carat, Color). This is because most of the diamonds purchase by the general public are rounds. Now, once wholesale market value is determind the pawn broker will base their loan offer or purchase offer on that wholesale market value. For example, if the retail price of a diamond is $10,000 then the wholesale bid price for the diamond might only be $5000 or even less depending on where you purchased the stone and the quality of the stone. If the wholesale bid price on the diamond is $5000, the pawn broker might only be willing to loan $2500-$4000 depending on how he operates.
The diamond market can be tricky so make sure you go to a reputable pawn dealer, but by educating
yourself you can help make shore you get the most for your diamond ring.