What does it mean to pawn a diamond? Where do I go to pawn a diamond? What is the difference between pawning a diamond and selling a diamond? These are just a few of the many questions you may be asking if you’re considering using your diamonds to get a loan.
To pawn a diamond means that you use diamonds that you own as collateral to secure a loan. When making a pawn loan on a diamond the loan company you are working with will evaluate the diamond to pawn to figure out it’s value on the secondary market. Once they figure what that pawn diamond is worth, they will use that figure to come up with an amount that they feel comfortable loaning you. Most pawn loans on diamonds are written for four months, and at the conclusion of that term you can either pay off the loan and interest to redeem your pawn diamond, or you can simply pay the interest and renew your pawn diamond loan. It should be noted while you will most likely have every intention of redeeming your pawn diamond at the conclusion of the loan, the company loaning you the money needs to protect themselves in the event that you do not pay off the loan. So their loan to value ratio needs to be based on the worst case scenario that they never see you again and end up owning that pawn diamond.
You may consider pawning a diamond vs selling a diamond. If it is important to you to keep the diamond in the long run, then pawning a diamond is the way to go. But if you are not emotionally connected to the diamond and simply want to get the most value for your asset, you should consider selling your diamond as you will most likely get a higher offer than if you were just making a diamond pawn loan.
When researching where to pawn a diamond, we recommend finding a company that has a lengthy history in collateral lending, has positive customer reviews, an A rating with the Better Business Bureau, and most importantly, is known for treating clients with the respect and discretion they deserve. Pawning a diamond often has a negative connotation, but there is no need for that to be the case. Find a lender that specializes in pawn diamond loans who focuses on creating a positive customer experience.
When pawning a diamond in San Francisco, we would hope that you consider San Francisco Provident Loan. We have been making loans on diamonds and other jewelry for over 100 years. Our company was founded on the principles of trust, honesty, discretion, security and integrity, and we maintain those principles from generation to generation. When considering where to pawn a diamond in San Francisco, please consider working with our company. We will be proud to serve you.