If you need money quickly, a jewelry loan may be a good option — as long as you have fine jewelry worth more than you want to borrow.
Can you get a loan for jewelry?
Yes. If you have fine jewelry you do not wear that is worth more than $500 — like an engagement ring from a previous marriage — you can use that jewelry as collateral to secure a personal loan through companies that specialize in jewelry loans, like Diamond Banc.
This is how Diamond Banc's process works to obtain a jewelry loan online:
- Fill out this online submission form with a description of your jewelry and desired loan amount to get an initial quote.
- Diamond Banc provides a free and fully insured shipping label to send in your jewelry for final evaluation.
- If you accept the loan offer, you’ll be issued payment immediately via check or wire transfer. If you don’t, your jewelry will be immediately returned.
- Once your loan has been fully repaid, your jewelry will be securely returned to you.
Most jewelry loans are issued for 50-75% of your jewelry’s estimated liquid wholesale value. Diamond Banc offers this example to explain what that is:
“Say you purchased a diamond from a competitively priced retail store for $6,000. The wholesale value would likely be somewhere in the area of $4,500. We would then loan 75% of that value, meaning your loan amount would be approximately $3,375.”
Jewelry loans tend to have low interest rates — typically between 3% and 8% — and are meant to be repaid in a shorter amount of time than a traditional loan.
Diamond Banc’s loan period starts at 30 days, which can be extended indefinitely as needed. The longer you take to repay your loan, the more you’ll pay in interest.
Alternatively, you can use pawnshops to get cash for your loan, though the interest rates tend to be much higher at pawn brokers.
You might consider a jewelry loan if you:
- Want to secure a loan with a low interest rate
- Need money in a short amount of time
- Have a low credit score and can’t qualify for a traditional loan
- Want a loan with flexible repayment options
Keep reading to learn more about jewelry loans and how they work:
How to get a loan on jewelry
If you are considering a jewelry loan, here’s how to make sure you get the best deal:
1. Get an idea of what your jewelry is worth
If you want to find out how much your jewelry is worth and how much you could potentially borrow, you should start by getting a jewelry appraisal, which is a statement of value that spells out the worth of your item.
When you apply for a jewelry loan, the company funding the loan will issue their own appraisal, but having one ahead of time can help you determine if you’re getting a fair offer.
During an appraisal, an appraiser will inspect your jewelry to determine its dollar value.
Jewelers Mutual insurance company says you can expect to pay a flat or hourly rate of $50-$150 for an independent jewelry appraisal, depending on the complexity of your jewelry. However, a jewelry loan provider like Diamond Banc will not charge a fee to appraise items you send in.
If you have diamond jewelry, you can also get a diamond appraisal from an independent association like the Gemological Institute of America (GIA), which will detail key characteristics of your diamond, like its:
- Color: The whiter the diamond, the more valuable it’s likely to be
- Clarity: Clearer stones with fewer inclusions (defects) are usually worth more
- Carat: Measures the physical weight of diamonds (the higher the better)
- Cut: Certain diamond cuts are more popular than others, which affects their value
Note that there is a difference between a certified jewelry appraisal and jewelry grading, the latter of which does not include your jewelry’s estimated resale price.
If you don’t have time to get a professional appraisal, you can see what similar items have recently sold for on ebay and other resale sites. Check out our post on symbols stamped on jewelry to determine the type and quality of any precious metal jewelry you have.
2. See who offers loans on jewelry online
If you search online for “jewelry collateral loans,” you’ll get a list of local and online companies that offer jewelry loans.
These are a couple of the bigger companies that offer jewelry collateral loans online:
- A+ BBB rating (accredited since 2014)
- Secure mail-in process
- Also has locations for drop off in Tampa, Boca Raton, Miami, Aventura, Orlando, Nashville, Atlanta, Charlotte, Kansas City, Columbia, and Rochester
- Borrow between $500 and $500,000
- Rates as low as 2.5%
- Receive funds in as little as 24 hours
- Accepts diamonds, fine jewelry, luxury watches, gold and precious metals
- Loans 65%-75% of the estimated liquid wholesale value of your jewelry
- Assets are fully insured and stored in alarm-protected, 24-hour security monitored, fireproof vaults
- Offers 30-day loans that can be extended for as many 30-day periods as needed
Check out our Diamond Banc review.
- A+ BBB (accredited since 2017)
- Secure mail-in process
- Borrow between $2,500 and $5,000,000
- Average rates of 3% to 8%
- Receive funds in 1 to 2 business days
- Accepts fine jewelry and diamonds, luxury watches, gold and silver, designer handbags and accessories, luxury and classic cars, fine art, luxury auction-quality assets
- Loans 50-70% of current fair market value prices
- Assets are fully insured and stored in high-security vaults with video surveillance
3. Do searches for “jewelry loans near me” and “jewelry collateral loans near me” to find local options
If you search for “jewelry loans near me” or “jewelry collateral loans near me,” you’ll get a list of local jewelers, pawn shops, and loan companies that offer jewelry loans:
4. Get answers to your questions before you take out a jewelry loan
When you’re choosing a jewelry loan company, these are some questions you should ask:
What are the loan terms?
Most jewelry loans are meant to be paid back in a short amount of time over a period of days, weeks, or months. Some require payment over time, while others can be paid off all at once. In general, the longer your loan period, the more interest you’ll pay.
In most cases, you’ll receive your jewelry back when the loan principal and interest are paid off.
Is a credit check required for the jewelry loan?
Most jewelry loans do not require credit checks, which means there is no negative impact on your credit score if you cannot repay the loan. However, you will have to surrender the item you pledged as collateral.
When do you get your money?
You can usually receive your money within a few days of sending in your jewelry as collateral.
How will your jewelry be stored?
Reputable jewelry loan companies store your jewelry in a highly secure storage facility under 24-hour surveillance.
Is your jewelry insured?
Reputable lenders will insure your jewelry while in transit and in possession.
If you use an online secured jewelry lender, who pays for shipping and insurance?
Typically, the lender pays for shipping costs and insurance, though every company has its own way of handling business.
5. Decide whether a jewelry loan is right for you or should you sell your jewelry
If you need money quickly, getting a jewelry loan is a good option if you want to hold onto the jewelry you’re using as collateral.
However, if the jewelry is something you no longer wear or want to keep, you can sell jewelry for cash instead. The best part? You won’t have to pay it back (or pay interest on it).
These are some places you can sell fine jewelry:
- Local jewelry shops
- Pawn shops
- Online precious metal and diamond buyers like Diamonds USA
- Auction houses
- Online auction sites like Worthy.com
- Consignment stores
- Online consignors
Jewelry loan FAQs
Have more questions about jewelry loans? Keep reading:
Why would you get a jewelry loan?
Tracy Cauley, a chartered financial analyst (CFA) from Dallas, says there are a couple benefits of getting a jewelry loan over a traditional loan:
- Faster and easier application process, with less paperwork
- No credit checks or financial disclosures
Who offers loans on jewelry and what kind of jewelry do they accept?
Some local jewelry stores and pawn shops offer loans on jewelry, as well as online lenders like Diamond Banc (which also has physical locations). Most accept these jewelry items as collateral:
- Fine jewelry
- Diamond jewelry
- Gold and silver jewelry
- Luxury watches
Bottom line: Do your research before you take out a loan on jewelry
Cauley says these are a few red flags you should look out for when you’re shopping for a jewelry collateral loan:
- Additional or hidden fees (like appraisal and storage fees)
- High interest rates, which could signify predatory lending practices
If you’re considering selling your jewelry instead of taking out a loan, we recommend Diamonds USA, sister site of CashforGoldUSA, because:
- A+ Better Business Bureau rating
- Gem Institute of America appraisals
- 100% guarantee highest price
- Offers free insured door-to-door FedEx shipping
- Pays within 24 hours
- 10% bonus when you send in your diamond or jewelry within 7 days
- Accepts all diamonds, as well as gold, silver, and platinum items
Yes. If you have fine jewelry you do not wear that is worth more than $500, like an engagement ring from a previous marriage, you can use that jewelry as collateral to secure a personal loan through companies that specialize in jewelry loans.
Tracy Cauley, a chartered financial analyst (CFA) from Dallas, says there are a couple benefits of getting a jewelry loan over a traditional loan: faster and easier application process, with less paperwork and no credit checks.