People begin to look for easy ways to make cash when money is tight.
Divorced or separated people often wonder whether they can pawn or sell their wedding ring to earn a little extra money.
Most wedding rings can be pawned, but there are several factors to determine the value of the ring and the price paid for it. These factors include condition, age, material, and the type of diamond used. Pawning your wedding ring includes a pawn shop giving you a loan, and then holding your ring until that loan is paid off.
So what exactly is the difference between pawning and selling? How do you successfully pawn your ring?
Here is everything you need to know about wedding rings and their relationship to pawnshops.
Difference Between Pawning and Selling:
Pawning the ring means using the ring as collateral to get a loan of a certain value from the pawnshop.
If you clear the loan, which includes clearing the interest and all other fees, you can get the ring back.
However, if you fail to clear the loan in the designated amount of time, it means that the pawnshop owner has the legal right to the ring and can re-sell it to anyone who is interested.
There are many reasons that people may choose to pawn their ring instead of selling it.
For example, if you require money at the moment but are not yet ready to part with your wedding ring for good, pawning it might be a good idea.
However, by pawning your ring you risk not being able to clear the loan, and therefore you risk losing your ring forever.
Selling, on the other hand permanently gets rid of your ring.
When you sell your ring, you exchange it for money of equal value.
You can sell to a pawn shop, but they are less likely to pay a good price because it’s riskier for them than pawning it.
If you choose to sell your ring, you should sell it to a jeweler, because they will know more about the ring and will likely give you more money for it.
A pawner, on the other hand, is mostly interested in making a profit and will buy the ring at a lower price.
How much will a Pawn Shop Pay for a Wedding Ring?
There is no definite way to determine the exact price that will be paid for any given ring.
That depends largely on the pawnshop.
However, as a general rule of thumb, pawnshops pay between thirty and sixty percent of the actual value of the diamond.
However, the price is determined and figured by several different factors:
- Condition of the ring: The condition of the ring is a huge factor in determining worth. If you bring in a ring that is scuffed, damaged or dirty, you can expect to get a lower price estimate. On the other hand, if you bring in a clean, sparkly ring in mint condition, you can get a higher cash amount.
- How long you have had the ring: The amount of time that you have had the ring is also a determining factor as to how much you will get for your ring. If the ring is newer, and you have had it for a shorter amount of time, its value is going to be greater than if you had it for years and years.
- The material the ring is made of: What type of material the ring band is made out of helps to determine how much money it is worth. Gold is generally more expensive than silver, but Platinum is the most expensive.
- The diamond: There are many factors within the diamond that determine worth. These factors include, but are not limited to: The cut, size, and shape of the diamond. The Pawnshop owner may also evaluate and place value based on the carat, color and clarity of the diamond.
Tips for Pawning your Wedding Ring:
If you are planning on pawning your ring, you should complete these steps before taking it to a pawn shop:
- Clean your ring: If you clean your ring before pawning it, the ring will appear in better condition and you will get a higher price for it. Luckily, you don’t need to take it somewhere and spend hundreds of dollars to get it clean. You can clean your ring at home by soaking it in hot water and soap, windex, or vinegar. Once you have soaked your ring, get a soft bristled toothbrush and scrub it gently. Then you should rinse your ring to get the solution off and dry it with a microfiber cloth.
- Learn how pawn shops value rings: As mentioned above, there are different factors that contribute to the value of rings. If you want to get the most out of your pawn, you should familiarize yourself with these factors so that you can know when the offer is too low. You should also learn about the markings on rings and what they represent.
- Utilize technology: Modern technology can quicky and effectively reach more pawn shops than you could alone. Posting your ring online, utilizing websites such as Pawnguru, will alert pawn shops in your area that the ring is available for bidding.
- Do not settle for the first offer: As tempting as the first offer may be, if you immediately accept you may miss out on other pawn shops or offers that are worth more money.
- Negotiate a deal: Once you have found a pawnshop that will offer you a good price, you can work out terms for the pawning, such as when the loan needs to be paid back, and how much they can loan you. If you are not looking for a loan, you can hand over the ring and get cash back in hand.
- Make sure that you can pay back the loan: If you get a loan from pawning your ring, it is important that you have the means to be able to pay back that loan as soon as you can. If you have no guarenteed way of paying back the loan, you will risk losing your ring and might as well just sell it.