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If you’re contemplating whether to sell or borrow money against the value of your jewelry, it’s either because you meet an unforeseen situation that warrants the need for immediate cash or you simply don’t want the piece anymore due to a bad memory associated with it.
Regardless of the reason why you’re considering selling or taking a loan with your jewelry, here are three questions you need to ask before deciding which move to take.
1. Do I still need it?
Recognizing the need for a particular jewelry piece is way beyond asking how often you wear it or not. Its sentimental value is also an important factor to consider.
If a jewelry piece is a family heirloom, associated with an important life event such as your wedding day, or a gift from a loved one, selling it may not be the best move. Using the piece as a collateral for a loan makes more sense in this case.
Meanwhile, if a jewelry reminds you of a bad memory, has little sentimental value, or something that you could do without, it’s advisable to let it go and just put it up for sale.
2. If I decide to borrow, can I pay the loan back on time?
Look at your current financial state. Determine whether you can pay the loan back on time or not.
If you’re just experiencing a minor financial setback and will be back on your feet soon, you can take a jewelry loan. Meanwhile, if you’re unsure how long it will take for you to recover, you might as well spare yourself from having another debt and just sell your jewelry.
In case you chose to borrow and went past the due date to settle the loan, try negotiating with the lender. It’s their prerogative to extend the due date or not, but it’s still worth a shot if you want to get your jewelry back.
3. How much money do you need?
Before you explore your options, determine the amount you need. Have your jewelry appraised and know how much you will get should you choose to take a loan using the piece or sell it. Look at the offers made and decide which will make more sense for your situation.
Other Helpful Tips
If you’re using jewelry as collateral or putting it up for sale, here are other tips to make a better choice and help you through the process:
- Only a professional should appraise your jewelry. Because of their expertise in the field, they can give you a more accurate price and reasonable offer based on the karat, weight, measurement and monetary value of your piece.
- Shop around for rates. Different lenders or buyers have varying ways for pricing jewelry. Make sure to do comparison-shopping to find the best deal if you’re selling or the most suitable term and interest rate if you’re loaning.
- Clean your jewelry before having it appraised. You’ll have better chances of getting good offers if you do.
- You have every right to accept or decline an offer. It’s all be up to you and no one should oblige you into making a decision right after appraisal.