Almost everyone will encounter some financial difficulties at some point. So, when such an occasion arises, and you have to have access to extra cash, a good place to start is your jewelry box. This is especially true when you own diamonds; some of the most expensive and valuable stones out there.
This does not automatically mean that you need to let go of your shiny goods permanently. With the help of a diamond jewelry and loan service, you can have the money you need and retrieve your precious possessions after you have fully repaid your loan.
Selling vs. taking a diamond-collateralized loan
When you find out that your diamond jewelry can fetch top dollar, you might feel tempted to just sell it. Before you do that though, you should first determine whether taking out a loan collateralized by your diamond is a wiser choice. In many cases, this approach typically has advantages over selling.
For instance, with a loan, you can have the money you need and maintain ownership of the item. This gives you a much better option especially if your jewelry has sentimental value. Also, diamonds typically increase in terms of value over time.
So when you opt for a diamond-collateralized loan, you do not have to worry about these consequences of parting with your valuables.
Loan based on the original value of the stone
Another considerable difference between these two options is the basis of the value you can get for your stone. When you sell it off, you can expect to receive far less than the diamond’s original value. This is because wholesale and resale values typically fetch a price much lower than the item’s retail price.
While you would get a smaller amount with a loan, the money you will get is a fraction of its original value. And do not forget that you can still keep your diamond, as long as you repay your loan on time.