Planning to get your jewelry appraised while taking a loan against it? Here's what you need to consider.

820 Views

Whether it’s one piece or an entire collection, jewelry is something that almost everyone has. If you need money, selling your jewelry may be an excellent option for getting the funds you need. However, if you don’t want to part with pieces permanently, another great option may be to contact jewelry buyers in Nashville to receive a loan against gold jewelry. Before handing over your jewelry to a lender, it’s essential to know the value of your pieces. A jewelry appraiser is used for various reasons, including determining an accurate and fair value for the pieces you are considering getting a loan against. If you are planning to have your jewelry appraised before taking a loan against it, here are a few things you need to consider.

Benefits of a Loan Against Gold Jewelry

Whether you need money for an unexpected bill or to take a family vacation, using jewelry as collateral for a loan means you have the best of both worlds, getting the money you need while having the option of keeping your jewelry instead of selling it. Some of the benefits of visiting jewelry buyers in Nashville for a loan against gold jewelry include:

It doesn’t affect your credit history –The primary concern for many people who need financial assistance is its negative effect on their credit score. When you get a collateral loan, there is typically no effect on your credit, regardless of whether the loan is paid back or not. If you fail to pay back the loan within the allotted period, the jewelry buyer that you took out the loan with will keep the jewelry you used as collateral as repayment for the loan.
Financial information isn’t required – When you apply for a traditional bank loan, there is generally a detailed process that includes submitting many financial documents to prove you are in good financial standing. Not only is this a lengthy process, but there is also a risk of being rejected for the loan. When utilizing a jewelry collateral loan from jewelry buyers in Nashville, there is no financial information required. There is no credit check; in fact, your credit history doesn’t matter. If you have jewelry with value, you qualify for a collateral loan for the appraised amount of the jewelry.
Low-interest rates: A significant benefit of utilizing a jewelry collateral loan is the low interest rates, especially compared to a traditional loan.

It is Easier Than You Think

The first thing to note is that getting an appraisal for your jewelry isn’t as overwhelming as you may think. There’s no reason to be intimidated, nervous, or overwhelmed when revealing your jewelry for its value. First, most jewelers and businesses that sell, pawn, or provide loans against gold jewelry offer an on-site evaluation of all the jewelry pieces you want to be appraised. Many of these places provide the appraisal at no cost to you. If you don’t want to go in for the appraisal personally, there are mailing options; however, in this situation, it is essential that you find a reputable company, so you will need to do your homework before using this option.

What are the different kinds of Appraisals?

If you need money and are considering getting a loan against your gold jewelry, the first thing to remember is the difference between the appraisal price and the selling/loan price. You typically can use jewelry as collateral for a loan, but you will not receive the actual amount of the appraisal in most situations. But instead, the amount will be based on what the lender can resell the piece for if you do not repay the loan and forfeit the jewelry. With that being said, there are different types of jewelry appraisals, but the most common include:

Insurance appraisals are generally used to establish the value of a piece of jewelry if it is lost or stolen.
Estate appraisals, this type of appraisal is usually used for probate and is based on a fair market value.
Donation/gift appraisals are appraisals that provide the value of jewelry pieces that are donated to or given to charities. The value is typically used for tax purposes.
Collateral appraisals are used to establish the value of jewelry pieces used as collateral for a loan.

How to Look for an Appraiser?

It is essential to keep in mind that not all appraisers are the same. There is no set rule or regulation for the certification of jewelry appraisers; in other words, anyone can claim to be a jewelry appraiser. However, just because someone sells and buys jewelry does not mean they are entirely qualified to appraise your jewelry adequately. Some of the qualities to look for when choosing an appraiser for your jewelry should include:

Fees- It is generally thought to be unethical for jewelry appraisers to charge a fee based on the ultimate value of appraising the jewelry. It is recommended that you only select an appraiser whose cost is based on the number of jewelry pieces being appraised and the amount of time needed to appraise the items.
A clear explanation- A reputable appraiser will provide you with a clear explanation of the grading system they use to evaluate your jewelry. You should never accept an appraisal in a language that isn’t clear to you. The appraiser should also provide you with an explanation of the appraisal report’s limitations of use. For instance, if the appraisal is being done for insurance reasons, it can only be used for insurance; it cannot be used as an appraisal for estate, divorce, collateral, or other purposes.
A professional report- The appraisal report depends on their intent, meaning the report should reflect the methodology used to perform the appraisal for a specified reason. The total value statement must be made in a way that doesn’t allow for modifications or changes, such as having a seal. A professional report should contain specific things, such as a description of the item, including grade, weight, color grade and measurement of component, notes about gemstone treatments, information about setting type, a statement of whether the gemstone is synthetic or natural, and a photograph of the jewelry piece.
Verify the appraiser’s resume – Do not hesitate to ask the appraiser what qualifies them to appraise your jewelry. A professional appraiser will have taken as well as passed exams and courses relating to evaluation and valuation, appraisal ethics, business/principle practices, standards, and effective report writing. It is also essential that they are up to date with changes in the industry. Be sure to check their association memberships and certifications.
Your gut feeling – The easiest way to look for/hire an appraiser is by trusting your gut. It is essential to choose an experienced appraiser who has had gemological and appraisal education and is certified. Still, it is also necessary to select an appraiser that you are comfortable with, professional, courteous, and respectful, and someone who will carefully and thoroughly explain the appraisal process to you and answer any questions/concerns you may have.

What is the General Cost for an Appraisal?

Several factors affect the cost of an appraisal, and since each piece of jewelry is different, each appraisal will be (or should be) different. For instance, having a simple piece of jewelry appraised may only take the appraiser about an hour to complete the appraisal; however, a larger, more complex piece of jewelry with a variety of gemstones and that is an unusual piece may take several hours or even days for a complete and thorough appraisal. There is generally a base cost of $50-$100, but keep in mind that appraisers often charge a flat fee or an hourly fee, which can range from $50 to $150 an hour. A reputable appraiser will be able to provide you with a reasonably accurate estimate of the cost for the appraisal after looking at the jewelry and before you agree to the appraisal. Remember, you should not use an appraiser that bases the appraisal cost on the value of the jewelry.

Why Choose Diamond Banc?

When you are considering the option of getting a loan against gold jewelry, one of the most reliable, reputable, and trustworthy Jewelry Buyers in Nashville is Diamond Banc. If you have valuable diamond and gold jewelry and need extra cash, you can trust Diamond Banc to provide you with a secure and trustworthy jewelry collateral loan. We offer regulated interest rates and consistent 5-star customer service. To learn more information about a jewelry collateral loan and for a free appraisal, stop in or give us a call today. We will carefully and honestly evaluate the pieces of jewelry you are interested in using as collateral. We will offer you a fair loan amount for the value of your jewelry pieces.