Diamond rings are the most valuable possession and since the price of diamonds never goes down, you can surely get a hefty amount of money by selling them. Although, no one wishes to sell their diamond rings for fun, if a situation arises where you have no other options than selling diamond rings then you should start looking for the best option to sell diamond rings and get the best price.
Selling the diamond ring in the right way is necessary because there are many people who have suffered huge losses while trying to sell diamond rings. Most people think that they know everything about the diamond ring but in actuality, they only know the type of diamond they have.
With no knowledge about the 4Cs and other aspects, anyone can scam you and lure you to settle on a lows price than what you actually deserve. Well, many people might think of selling diamond rings to pawn shops but do you really think that is a good option? Let’s find out through this blog post.
The working of the pawn shop business model
Pawn shops have been around for a long period of time with early pawn shops dating back to the Ancient Greece period. But the pawn shop business model is quite simple and you don’t need to be a business expert to understand it.
The pawn shops buy items at a lower price from the customers and then they sell those items to people who might need them more than you or they might put them in the auction. Well, selling in the auction is not that usual in the case of jewelry unless your jewelry is rare.
In addition to this, pawn shops also offer loans on jewelry items but they usually offer lower prices than what an online dealer can offer. This is why when you search for diamond ring buyers near me, you should always settle for a certified online dealer.
Is selling diamond rings to pawn shops worth it?
It doesn’t matter which type of diamond ring you have, you should never sell it to a pawn shop, even if it seems fairly easy. When you sell your precious diamond ring in a pawn shop, you get a smaller fraction of what the diamond ring is actually worth the payment.
Here’s why. People usually visit pawn shops to buy items at lower prices in comparison to what they have to pay in the market and therefore, they are ready to buy used items at the pawn shops. No one is going to walk in the pawn shops with the intention of paying the marker price.
So, we can say pawn shops attract only those customers who are ready to buy used products at below market price. This simply means that the only way pawn shops can make money is by buying products at a low price and this is what they do when they buy diamond rings from you.
Pawn shop don’t have diamond experts
If you are going to search for diamond buyers near me and settle for a local pawn shop then be sure that your diamond ring is not going to be evaluated by an expert. So, even if you have a precious diamond ring, you might have to sell it for a low price since neither you nor the pawn shop owner is a diamond expert.
Later, the pawn shop owner might get your diamond ring valued from an expert and then, they can sell it at a much higher price. And in addition to making a profit on the diamond ring, they also have to pay rent, utility bills, employee salaries, and other expenses. All this might affect the price you get after selling your diamond ring.
Local primary market and negotiation
The primary resale market of pawn shop owners is usually local. So, after buying from you, they might try to sell the ring in the local market or pass it to another jewelry store. But since this is a smaller market than the online platform, pawn shop owners have to settle on a small price.
The negotiation factor in the case of pawn shops also lowers down the price you get against your diamond ring. There are no standard rules when it comes to the price you get for selling an item in the pawn shop and therefore, it all comes down to your bargaining power. If you are not good at negotiating then you might have to settle for less than what you actually deserve.
If you want to make the most of your diamond ring deal then instead of choosing a pawn shop, you should stick with online buyers and search for diamond buyers near me on the internet.