Diamonds are one of the most precious gemstones in the world. They have been a symbol of love for centuries and are considered an investment as well.
However, when you want to take a loans against diamonds, it is important to understand what you are getting into. You need to be able to value your diamond properly.
1. Valuation of Diamond
There are a few factors that can have a big impact on the valuation of a diamond. These include weight, color, clarity and cut.
A standardized unit of measurement for the weight of diamonds is called a carat. Each carat equals 200 milligrams.
It is further divided into 100 points pawn shop near your area.
Having the proper grading report from a reputable lab is important. These labs will grade a diamond’s characteristics based on their 4 C’s: Cut, Clarity, Color and Carat.
A 1-carat diamond that’s internally flawless, perfectly cut, and “D” color could be worth more than $20,000. On the other hand, a 1-carat stone with significant inclusions, a poor cut, and an “I” color might only fetch $3,000. This is why it’s so crucial to do your research before making a purchase.
2. Know Actual Worth of Diamond
The actual worth of your diamond will vary, depending on a variety of factors. This is why it’s a good idea to know what you’re getting into before jumping into any deal.
The best way to figure out the value of your diamond is to do your research and compare it to similar diamonds sold in the same market. This will give you an idea of what your diamond is worth in the eyes of a knowledgeable buyer.
In addition to the old school method of looking up the price of similar stones in a local jewelry store, you should also consider using the online tools available to you. This will help you get a better idea of the true cost of your diamond and can save you from paying too much for your jewelry.
3. Find Certified Diamond Buyers
If you’re looking to sell your diamond, it’s important to find certified diamond buyers. This will help ensure you get the best possible price for your stone.
The resale value of a loose diamond is based on the 4Cs: cut, color, clarity, and carat weight. These factors are often influenced by the quality of the diamond grading report you receive.
A jeweler can help you understand these qualities and how they affect a diamond’s appearance and value. They can also suggest a number of options for you to consider.
Buying a diamond is one of the most important decisions you will make in your lifetime. It should be a thoughtful, well-planned process.
4. Interest Rate on Diamond Loan
One of the best ways to get a loan against a diamond is via a credit union. They typically offer lower interest rates and more flexible loan terms than their brick and mortar competitors. In addition to the obvious lending options, they also have a robust online banking platform and mobile app that allow you to manage your finances from anywhere.
The most important question is whether a diamond loan will work for you and your wallet. If not, you may want to consult with a financial planner, whose services are often free of charge or at least highly discounted. Using the services of a professional can help you determine if a loan is right for you or your loved one. They can also provide you with a list of lenders that will match your budget and goals.
5. Repayment Options
If you don’t have enough cash to pay for your diamond ring in full, consider getting a loan against it. Unlike traditional loans, asset-based loans offer you a variety of repayment options to help you pay for your purchase in an affordable way. For instance, if you use a Citi Diamond Preferred Credit Card, you can repay your debt over 36 months with interest rates that are as low as 14%. However, keep in mind that if you don’t settle your payments in time, a standard APR will be applied and rates can go as high as 29% depending on your creditworthiness.
Conclusion
In addition to being a great alternative to traditional loans, asset-based loans also allow you to retain ownership of your diamond once the loan is paid off.
