Is pawning a diamond ring safe?

Is it Safe to Pawn A Diamond Ring?

Pawning a Diamond RingWhen we think of quick money, a pawn shop comes to mind. The process is so simple that it will only take us less than hour and we go home with the cash. We bring the gem; the shop appraises it and gives us an offer. We try to negotiate in case we need more and then we get paid and leave. Our problem is solved. But as we get home, we ask ourselves: “Did I do the right thing? Is it safe to pawn diamond ring?”

Don’t worry about your fear; it is just normal for someone like you to suddenly feel terrible because you treasure your jewelry so much. Your panic on safety connotes two things: financial protection from pawnbrokers and security from lost, damage and robbery.

Financial Protection from Pawnbrokers

People who rush into a deal are often the victims of scams. They no longer make extra efforts to check the fair market price as well as the value of the jewelries they own. They do not realize that there are a lot of pawn shops (especially those that only operate online) that offer them less because their goal is to gain profit.

To make sure that you will not transact business with scammers or pawnbrokers who perform unfair practices, check the reputation of the companies. Type their names on the search browser and hit the “Enter” key. You will see search results that relate to them. Read the ones that appeal to you—regardless if they tell something positive or negative. Take note of everything you read.

Go to their websites, if available. Look for their contact information; if they have one, there is a high possibility that they are genuine. Check their Better Business Bureau rating or look if there are complains filed in Ripoff Report because customers expressed their dissatisfaction at this sites. If you find some businesses that are in your list here, drop them immediately. You do not want to deal with those who have questionable reputations, right?

If you are not keen on doing all these just to make sure you bring your jewel to credible pawn shops, your best option is to go to at least three establishments near your area. Most of your friends and neighbors go there; hence, you very well know its character. Regardless if it offers you less cash than you expect, bring your item here to avoid all the hassles. They will appraise your stone. Compare their prices and the corresponding interest rates. You will then have an idea on which amount to negotiate.

Another best alternative is to ask for referrals. Because your friends, neighbors and co-workers have already been there, they can vouch for the safety of your item.

Safety of Pawned Items from Loss, Damage and Robbery

When you ask “Is it safe to pawn diamond ring?” you may also refer to your fear on how businesses manage the security of their establishment and handle the pawned items. To stop your fright, make inquiries before choosing a pawn broker. For one, ask how they store jewelries. Their storage process will help you gauge if your ring is safe from them. They can tell you the type of storage shelves they use and that they have 24-hour surveillance camera inside the storeroom. All these should throw away all your doubts.

But burglars are burglars; they have a way to accomplish their “job”. But do not fear, particularly if they guarantee that your item is insured, normally, legitimate pawnshops are fully insured for the loan value of the collateral they keep. Likewise, the U.S. follows strict rules when it comes to operating a pawn business. The guidelines may differ from state to state, but as consumer, you can be sure that these are made to shield you from circumstances like loss, damage and burglary. They have a duty of due care to safeguard all the items that are pawned to them. In case the pawn shop is robbed, do not easily lose hope because it constantly works with the local police. Your pawned item, along with the other stolen jewels, carries serial numbers that will help the police officers in tracking them so you can get them back.

“Is it safe to pawn diamond ring?” The answer depends on the individual or the company you choose to bring your jewel. If you make transaction with scammers, then it is not in safe hands. But if you go with an established and credible pawn shops and pawn brokers, then your stone is protected.

Img c/o Pixabay.

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