Everybody hits bumps in the financial road from time to time—and there's no shame in doing what you have to do to get through them, even if that includes taking out a collateral loan for some of your personal jewelry. However, if you're unfamiliar with the process, here are some tips you can use that will help you get a larger loan.
1.) Go Someplace Familiar
If you occasionally do business with a jewelry store that also offers collateral loans, that's where you want to take your jewelry. While you might be hesitant to reveal your financial problems to someone that you do business with at better times—don't. Stores that offer collateral loans want to help their customers get through a slump because that encourages repeat business down the line when your finances are better. In addition, their familiarity with you may encourage them to trust you with a larger loan.
If your normal jeweler doesn't offer collateral loans, ask if they can refer you to somebody who does. They may have good information on who offers the best loans and has the best reputation, which can help you when you're trying to pick through your options.
2.) Take Your Best Stuff
A pawnshop or jewelry store that offers collateral loans is mostly interested in your better jewelry. Take a moment to examine your pieces. Gold is (usually) going to get you a bigger loan than silver, and the higher the gold content the better. Gold content is measured in a unit called karats. Look for the marker inside the ring or on the clasp of your bracelet or necklace to see if it is marked 12K or higher. Keep in mind that anything under 12K is generally considered lesser quality—pure gold is 24K, so anything less than 12K is less than 50% actual gold.
The metal in silver jewelry is less valuable than gold, but your silver jewelry may still have significant value—especially if it is heavy, well-made, antique, or a designer piece. The value to the jeweler depends largely on whether or not he or she intends to melt it down or resell it if you default on the loan. If you locate a jeweler or pawn shop that resells quality pieces, you may still be able to get a significant loan for your good silver jewelry.
3.) Take Sets And Original Boxes
If you have some unique pieces or designer sets, the value increases when you own the entire collection. For example, a bracelet that was designed by Barry Kieselstein-Cord, who is known for his whimsical flora and fauna motifs, increases in value when you also have the matching earrings and necklace. Original boxes, which help authenticate a designer piece and are sometimes treasured by collectors, also help make your jewelry more valuable.
4.) Expect A Few Questions
Your pawnbroker or jeweler may ask you a few questions about why you need the loan—that's normal and it can help you in the end if you're honest. Someone who has a temporary financial emergency, like a blown-out tire or a broken AC unit, is more likely to repay the loan than someone who is heading to the casino for the weekend. The most important thing you can do to help yourself is to know exactly how much you need, at a minimum, to get through the problem you have. If you need $400 to repair your car so that you don't miss work, let the jeweler know. There's no point in taking a loan and going into debt if it won't help you out of your situation, so you may be able to negotiate a little. If you're nowhere close, the jeweler will tell you.
For more information, contact a company that offers collateral loans for jewelry, such as RK & Co. Jewelers.
Share30 August 2016
A few days ago, my mother-in-law’s dad passed away. This sweet man lived a long, full life. He was ninety-one-years-old when he died. At his funeral, my mother-in-law told me she liked the ruby, cross pendant I was wearing. Because I wanted to cheer this sweet woman up, I immediately came up with a plan. I decided to buy her a pendant like mine. Because this pendant was also available in sapphire, I decided to purchase this stone for my mother-in-law. Sapphire is her birthstone. On this blog, I hope you will discover the best types of jewelry items to buy for a mother-in-law. Enjoy!