If you find yourself in need of emergency funds, selling valuables can seem like a quick and easy solution. Jewellery, most often diamond rings, is often the first to be sacrificed in order to cover the cost of an unexpected bill.
Unfortunately, selling a valuable diamond ring doesn’t automatically mean you’ll be getting a good deal. Universally, diamond rings will never fetch their actual value in a second-hand sale. No matter what you paid for the ring, you won’t get that amount back.
Why diamond rings sell at a loss
Even if you get the ring professionally appraised, you won’t be able to sell the ring privately or to a dealer for the same amount. The reasons for this are quite simple. Retailers need to sell the ring at the appraised amount after they’ve bought it from you. If they give you a good price, they won’t make enough of a profit.
For private buyers, they are buying a used or second-hand product, even if it is a valuable one. They expect to get a bargain, otherwise they would simply go and buy a new ring from a retailer or dealer.
Pawning a diamond ring: the better option in a crunch
Selling a diamond ring isn’t the only way to access its value for other purposes. The term pawning may sound off-putting but it’s simply another way of saying a short-term loan based on the value of an asset.
Using an asset-based lender will allow you to pawn your diamond ring and secure a loan that’s tied to the value of the ring. Your ring is then kept by the lender as collateral in a secure location and, after the loan has been repaid, the ring is returned to you.
This is a far better option than selling because you get the emergency funds you need without having to sell your treasured possessions. The ring remains part of your investment portfolio and can even be used to secure another loan in the future.
How to pawn your diamond ring with lamna
The process to get an asset-based loan with lamna is simple and quick. Just bring your diamond ring and its recent independent appraisal to your nearest lamna branch and we will provide you with a loan offer based on the appraisal.
If you are happy with the amount we offer, the loan is then finalised, and we take possession of the ring until such time as the loan and the agreed upon interest are repaid. The funds are paid directly into your account within 24 hours, often before you’ve even left our offices.
Not only do you get to keep possession of your asset this way, there are several other benefits to pawning your diamond ring with lamna:
- our interest rates comply with NCR guidelines
- the loan doesn’t affect your credit rating
- there are no hidden fees or early settlement penalties
- your diamond ring will be valued by an independent appraiser
- the application process is simple and transparent
- the loan doesn’t affect your ownership of the diamond ring
At lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork. For more information about using an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.
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