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Jewelry Buyers

How to Pawn Rare Earth Metal Jewelry: A Comprehensive Guide

By November 2, 2023No Comments

Wondering how to determine the value of your rare earth metal jewelry before pawning? Our guide will walk you through the process, ensuring you have a clear understanding of your jewelry’s worth.

Step 1: Determine Precious Metal Values

  1. Check Current Values: Visit our website’s education center to understand the current values of gold, silver, platinum, and other precious metals.
  2. Sort Your Jewelry: Categorize your items based on their precious metal content:
    • Gold: Separate into 14kt (.585 purity) and 10kt (.417 purity) piles.
    • Silver: Divide between bullion (.999 pure) and jewelry (.925 pure or sterling).
  3. Weigh Precious Metals: Ensure you deduct the weight of any non-precious stones or metals. This will give you the net precious metal weight.
  4. Calculate Approximate Value: Use the weight and the current metal values to estimate your jewelry’s worth. Typically, pawn shops loan between 50%-80% of this value.

Step 2: Assess Diamond & Other Stone Value

Understanding Diamond Value:

  • Diamonds: They are the most tradable among gemstones in jewelry.
    • The 4 C’s: Diamond value is based on:
      • Carat (weight): Smaller diamonds (.01-.20 carats) are often priced collectively.
      • Cut (shape): Round diamonds are usually more sought after, affecting their price.
      • Clarity: Fewer internal flaws (like carbon spots or feathers) mean higher value.
      • Color: Whiter diamonds are more valuable. Though rarer, pink and blue diamonds are highly priced.
  • Paperwork: If you have certification or grading reports for your diamonds, it’s easier to determine their wholesale value.
  • Getting an Opinion: In the absence of paperwork, consult a jeweler or pawn shop about the diamond’s 4 C’s.

Liquidity Concerns: Diamonds have a wider buy-sell price gap than metals. A diamond worth $10,000 wholesale might be purchased by a dealer for only $7,000-$8,000 due to inventory considerations.

Step 3: Calculate Total Liquid Value

  1. Combine Values: Sum up the values of precious metals and stones to get the total liquid value.
  2. Estimate Loan Amount: Pawn shops generally offer loans or purchase jewelry at 50%-80% of the liquid value. For example, jewelry with a liquid value of $3500 could fetch a loan of $1750-$2800.