Many people find themselves in situations where they prefer to know the lending potential of their diamonds. Why is this a concern to many? It is likely because they need to raise capital quickly, and one of the best ways that they have found to do so is borrowing against their diamonds. There are diamond buyers nationwide who also serve as money lenders. Such diamond buyers can offer competitive loans to people who want to receive cash without transferring the ownership of their valuables. In this way, individuals can retain ownership of their diamonds while borrowing money.
DO YOUR DIAMONDS HAVE LENDING POTENTIAL IN 2022?
The value of diamonds fluctuate. You may find that your loan value could increase dramatically during specific periods, and it may decline during others. That is all dictated by supply and demand within the market. In 2022, the diamond market is white-hot as people look to invest in assets outside of traditional stocks and bonds. It appears that investing in diamonds is here to stay. Many people are highly appreciative of the opportunity to receive a higher value loan against their diamonds than they have in a long time.
ELEMENTS THAT DETERMINE A DIAMOND’S VALUE
1. THE QUALITY OF THE DIAMOND:
The factor determining your diamond’s borrowing potential will always come down to the quality of the diamonds themselves. Do you have something in your possession that other people are seeking? Or are your diamonds extremely common? These are the types of questions that you must ask yourself when considering the potential borrowing value. You do not want to assume that you have more borrowing power than you have, but you should also be aware that not all diamonds are the same.
One effective method to evaluate your stone’s worth is to use our diamond value calculator available here. This calculator does NOT guarantee its value, but it provides an estimate of how much your diamonds could be worth.
Such a tool will help you evaluate whether you’ll receive anything close to what you are hoping for in terms of a loan. It is always best to walk into a transaction understanding the value of your precious gems. You may discover that the amount you were hoping for is either higher or lower than you realized. Either way, at least you are educated of what you can expect to receive for your diamonds.
2. THE 4CS – COLOR, CLARITY, CUT, AND CARAT WEIGHT:
Before the mid-twentieth century, we never had a standard, agreed-upon criteria to judge diamonds. However, the GIA Clarity Scale created the first standard for describing diamonds. It is a globally accepted method that involves the Color, Clarity, Cut, and Carat Weight of the diamond. This universal method allows diamond customers to understand the value of what they purchase or sell. Hence, the four parameters mentioned above determine your diamond’s worth.
3. THE SHAPE OF THE DIAMOND:
All diamonds are majorly priced based on their carat and shape. Different carat weights and shapes play a critical role during the pricing of the diamond. That is why some of the most brilliant cuts and shapes are so valuable. Princess-Cut, Cushion Cut, Radiant Cut, Oval Cut, Emerald Cut, and Heart Shape are examples of diamond shapes.
Certification is another critical step that impacts the value of your diamond. Acquiring a top-notch certification while buying a diamond can help ensure that you are getting what the seller is claiming to sell. The same exchange of assurance is required when you resell the diamond ahead. Therefore, if you have certifications from GIA and AGS laboratories, you can get excellent prices against your diamond. It will convince the buyer that they are getting a genuine item.
5. PROFESSIONAL DIAMOND APPRAISAL/EVALUATION:
A professional appraisal from a neutral source can help buyers verify the characteristics of your stones. The 4Cs mentioned above play a critical role in determining the current value of your diamond. Hence, receiving an appraisal can help both parties understand the overall value. Since the Gemological Institute of America (GIA) has standardized the evaluation process, one can also approach international buyers once they have got their diamond appraised or evaluated.
ARE THERE DIAMOND LENDERS IN YOUR AREA?
There may be a selection of diamond buyers and diamond lenders in your area. Take a moment to research them to see which ones are the most ideal for your particular needs. They are not all created alike, and it is a mistake to assume that you can take your diamonds anywhere and receive a fair deal. You certainly don’t want to place yourself in a situation where you are dealing with a loan shark. It happens to people all the time, and the results are devastating.
Instead of taking a risk like that, why not seek the most reputable jewelry pawn shop in your area. Determine which one is serious about providing you with the capital that you need to satisfy your financial concerns. If you find a lender who can respectfully work with you and genuinely wants your business, you are in good shape.
Word-of-mouth is a great way to start finding buyers who give their customers a fair deal. Ask around the community and people you know to see who they might have gone to before. Many people will happily offer you their best recommendations. You can then compare their recommendations online to see if they will suit your needs.
WHY YOU MIGHT PREFER TO RECEIVE A LOAN COMPARED TO SELLING
Many people visit a diamond buyers’ shop looking to sell their jewels to raise the capital needed for other expenses. It is a common practice, but some have turned to diamond loans instead of selling them outright. That is because many see the appreciating value of their diamonds and don’t want to part with them. What happens if they sell their diamonds today only to discover that they are worth a lot more down the road? That happens to many people, and they are not pleased about it. They become upset that they had sold their diamonds right before they climbed in value. One way to avoid this is to take out a loan against them instead.
Those who are confident that they will soon have the funds available to purchase their diamonds back should go with the loan option. Paying off your debt can strengthen your relationship with the lender. Perhaps the next loan you receive from them will be more prominent due to that added trust. Building such relationships will help you in your times of need.
At times, everyone runs into situations when they need liquid cash more than they need hard assets, such as diamonds. It is convenient that you can search for diamond buyers near me and discover buyers who are interested in your gems. Take this opportunity to evaluate the value of your diamonds and take out a loan against them rather than selling them. You may be pleasantly surprised by the results.
WILL THE VALUE OF DIAMONDS GO UP EVEN MORE?
It is always a mystery which assets will rise in value versus which will decline. Anyone who tells you with absolute certainty that they know which way an asset is going to go is not telling you the truth. If they had known these things ahead of time, they would have invested their money and already made a significant return on it. That said, you can rest assured that diamonds are an excellent place to invest your money. The reason is that so many people are interested in assets other than stocks, and bonds. There are many reasons for this, including the economic shocks that the entire world has seen recently. Still, the bottom line is that hard assets such as diamonds seem to have caught the eye of many investors at this time. They are likely to provide the boost that diamonds (and other hard assets) need to continue to propel themselves towards the future.
The world will keep changing, and the values of different assets will churn along with that, but you can feel pretty confident that diamonds and precious metals will appreciate in value. You should consider this when considering selling or pawning your diamonds. Don’t give up a good thing that you own just because you are desperate for cash at the moment. You deserve to have it all, and that means working on pawning your diamonds in a way that will work effectively for you. Think about it like this, and you will see why you should search for the best diamond buyers that you can find in your area today.
In this article, we have talked about how you can assess the lending potential of your diamond. However, not everyone is equipped with the right expertise to evaluate the actual value of a valuable item. At Diamond Banc, we have highly trained and qualified diamond experts who can quickly assess the market value of your diamond. We provide industry-leading offers to our clients as we have a team of GIA Graduate Gemologists who can accurately judge the value of your assets. We strive to offer you the best financial solutions that align with your needs. Contact our experts today to know more.
Diamond Banc is the nation’s top-rated jewelry buyer & lender. Visit one of our nationwide locations, or work with us from the comfort of your home.