We have all experienced being locked up in a financial crisis. The fastest way possible to make more cash is to make use of any assets available to you at the moment. Some may lean towards going to pawnshops or pawnbrokers and exchange their chosen asset, the most common would be jewels. Here is a basic run through on how diamond pawn in Clearwater FL works and how it is carried out.
Pawnshops provide a way for people to receive money depending on the jewel that they give. It is a collateral based loan, which means that the loan is insured by something of value. For this example, you choose diamonds and the pawnbroker will offer you a loan after they have examined the stone. Your item is secured with them until the time that you can repay your loan, with regards to terms that both parties have agreed on.
Pawnbrokers will first examine the diamond that you have provided for your loan. Just like other precious metals, their value will greatly depend on their rarity and grading. The rarer an item is, the more their value would be. In addition to that, the size of the gemstone will also be a great factor for its value.
When grading a diamond, there are four major factors to consider which is more commonly known as the Four Cs. They are the carat, color, clarity, and cut. This grading system is widely used in all the establishments that grade diamonds. This is how one can determine their value.
Cut means how the gemstone was manufactured to form its current shape. It does not necessarily refer to the shape of the stone, but the proportion and symmetry of it. This is the most important factor that needs to be considered when grading.
The carat refers to the overall weight of the stone. There are a lot of misconceptions that this refers to the size, however, is not necessarily true. This is the measurement of how much it weighs. A carat can also be subdivided into one hundred points. They can refer to the points alone and be able to estimate the weight of the gemstone.
To have a higher value, the diamond should be colorless. The more transparent it looks, the better it will be. The ones with a light yellow color do not have a very high financial worth. Lastly, the clarity is how clear it looks. There should be no external or internal defects that will affect the worth of your stone.
Businesses of this kind examine and assess diamonds in this specific way also to ensure their benefit while serving their clients. When they buy something from you, or you loan something to them, they generally estimate what they think they can bargain for. They have to think about the worst case scenario and be ready for such a situation.
There are such cases when a client will not be able to pay off their loan so the stone will automatically be with the brokers. They are considered to have forfeited the loan, which has to be explained to all their clients beforehand. They will have to melt this, since there are a lot of potential diamond buyers who would buy those from the shop, considering their value.