Wealthysinglemommy.com

Despite their reputation as shady operations that want to take advantage of unassuming customers, many pawn shops are reputable businesses with deep roots in the communities they serve.

If you’re in need of quick cash and have jewelry to sell, a local pawn shop can be a solid option to sell jewelry, gold or silver the same day — or secure a loan using your jewelry as collateral.

This is a unique time to pawn or sell jewelry: Diamond prices are at an all-time, rock-bottom low, while gold and silver have never been more valuable. Meanwhile the job market and inflation mean that many people really need cash.

In our experience, payouts from a reputable pawn shop are in-line with what you’d make from a local or online jewelry buyer (keep reading for details). 

Before you sell, look for pawn shops in your area with positive reviews on Google, the Better Business Bureau, and Yelp, and seek recommendations from people you know. Also, be sure to negotiate any deal you make. Details on how to negotiate below!

In this post, we’ll help you understand:

If you aren’t in a hurry to be paid, get quotes from multiple pawn shops, jewelry stores and gold buyers, including top-rated online buyers, who offer a more discreet process for selling and highest-price guarantees.

What are pawn shops paying for jewelry?

Pawning jewelry will get you quick cash, but not always the highest payout. Spend just a little more time and get quotes from multiple gold buyers to guarantee you get the most money possible.

We recently sent a North Carolina based writer named Melinda Burris to research different options for selling gold. 

Melinda purchased six of the same 7.5-inch Italian 10k gold bracelets from Macy’s, which were on sale for $200 each, plus tax. Her assignment was to sell to several online gold buyers, a local jewelry store, a local cash-for-gold storefront, and a local pawn shop.

She visited two pawn shops near her home in Raleigh, since the first was not currently accepting new items. This was her experience: 

---

Carolina Trade and Loan

I went to a pawn shop called Carolina Trade and Loan to find they were not taking new items at this time. I was told pawn shops do this at times when their inventory or amount owed for loans is too high. 

So, a valuable lesson was learned: Call before you go.

National Pawn

When I went to National Pawn on Saturday, March 30, I was greeted and taken to a booth where the bracelet was examined. They used the most recent spot value of $62.86.

The rep did a chemical test on the bracelet because she believed it to be 14K rather than 10K. Her manager came over and did the test again and determined it was indeed 10K.

He asked what I was looking to get out of the piece, and I replied $100, noting once again that the piece was new. He offered $50 cash and would not negotiate further. 

However, he and his assistant were very professional and I felt comfortable discussing the piece, its value, and negotiating a price. To complete the transaction, I had to show a photo ID. As I was leaving, the manager called after me and invited me to return at any time.

Final offer: $50

Percentage of spot gold price: 79.5%

---

This is how National Pawn stacked up against the other gold buyers Melinda sold to: 

Gold buyer	BBB rating	Business type	Final offer	% of spot gold price*
CashforGoldUSA	A+ (accredited since 2020	Online gold buyer	$41.49	67%
Raleigh Gold Jewelry	A+ (accredited since 2008)	Jewelry store	$40	64%
National Pawn	A+ (not accredited)	Pawn shop	$50	79.5%
JewelRecycle	A+ (accredited since 2009)	Local gold buyer	$51	80%

Different pawn shops and gold buyers may offer you more or less money for your jewelry, depending on factors such as:

• Market size/competition
• Current market value of gold
• Demand/saleability of the item you’re selling

At the end of the day, however, a pawn shop and any gold or jewelry buyer is a business, and they will offer you whatever they want to offer you for your jewelry or gold — or they may not be interested in buying it at all. If you have any receipts, certificates, or other paperwork to verify the value of your jewelry, bring them with you when you sell. 

Note that some jewelry pieces, like those from luxury brands like Tiffany or Cartier, have value beyond their precious metal content — which means you may have a better shot at selling them to a local jeweler or even an online jewelry marketplace like Worthy or myGemma. 

See this Reddit thread: 

Comment
byu/justanotherfuccboi from discussion
inAskLosAngeles

Before you pawn jewelry, spend some time learning about the market value of your diamond or any gemstone in your jewelry (gemstones and pearls have very little resale value, though the gold in which they are set always does). Since a certified lab report is expensive and time-consuming, a visit to a local jeweler can help you understand the value of your item.

Pawning diamonds, wedding rings, engagement rings

Diamonds in general do not hold their value the same way gold and silver does.

Expect less than 20% of today’s retail value of your diamond at a pawn shop, or other diamond buyer. This chart shows how diamond prices have plummeted almost 85% since 2022. Consumer trends and lab-grown diamond popularity are to blame.

This Reddit user detailed a poor experience trying to sell a $2,000 engagement ring to two different pawn shops:

Comment
byu/FPierce from discussion
inNoStupidQuestions

Check out our posts on how to sell diamonds and how to sell engagement rings. 

Pawning gold

The price a pawn shop, or any gold buyer, will pay for gold is based on today’s gold price, minus their commission — which could just be whatever they feel like paying you. 

The price a pawn shop will pay for scrap gold vs. gold jewelry may be the same if they plan to melt down the jewelry for scrap (such as most gold jewelry, dental gold and gold bullion), or a slightly higher price per gram if the pawnshop plans to resell the gold jewelry as-is.

Broken jewelry is often bought for scrap, but is sometimes repaired and resold.

For example, if a pawnshop owner assesses a broken gold chain at today’s spot price, and believes he can sell it for scrap for $300, he may take a 30% commission — $90 in this case — and offer you $210. You should always negotiate with a pawnshop.

Gold is currently sitting near record prices of $4,500 per ounce, so now is a great time to sell. Learn more about how to sell gold.

However, if you have branded jewelry or a piece that is currently in style, it can be worth more than its precious metal content. Check out our posts on selling luxury jewelry brands: 

• Tiffany
• Cartier
• David Yurman 
• Van Cleef & Arpels
• Harry Winston

Pawning pearls

If you want to sell jewelry with pearls, a pawn shop is likely more interested in any gold content of the clasp, chain or setting, as nearly all pearls have zero resale value — no matter where you try to sell.

Learn more about how to sell pearls.

Pawning silver

Like gold, pawn shops are most likely interested in silver jewelry for its precious metal content, unless it is from a sought-after brand. You will likely be paid a percentage of the spot price of silver. 

As of , the silver resale value in the United States was at per ounce, or  per gram.

If you have rare silver coins or sterling silverware, a pawn shop is a solid option for immediate cash. You can also sell to an antique dealer, coin dealer, silver exchange, local jeweler, or through an online silver buyer. 

Learn more about how to sell silver.

Pawning watches

Before you sell a pawnable watch — like a Movado, Rolex or Tag Heuer — get an appraisal from a jeweler, watch dealer, or antique/estate jewelry dealer or compare prices of similar watches online to understand what your timepiece is worth. Other watches may be valuable for their gold content.

While most pawn shops will buy watches with dead batteries, you should replace them before selling if you can. A pawnbroker will likely want to make sure your watch is not broken before purchasing. 

You can find inexpensive battery replacement kits and watch batteries on Amazon. 

If you have a luxury watch, you may fetch a higher price selling via an online consigner or jewelry marketplace like Worthy. Learn more about how to sell watches.

For short-term cash without selling, consider specialized Rolex watch loans that provide fast funding, top offers based on model and condition, and a fully insured, discreet process while your timepiece is stored securely. Having your box, papers, and recent service records can help you qualify for a higher loan amount.

How to pawn jewelry

If you want to sell jewelry to a local pawn shop, here are some tips to make sure you get the highest payout: 

1. Figure out what your jewelry is worth

If you have gold or silver jewelry, use a calculator like this one from CashforGoldUSA to estimate how much your jewelry is worth in the current market:

If you aren’t sure whether you have real gold or silver, look for markings that show the type of jewelry you have and how much precious metal it contains. 

You can also get a jewelry appraisal though those typically cost $150 or more, so they aren’t worth it unless your jewelry is worth significantly more than that.

2. Find a reputable pawn shop

Ask for recommendations from friends and family and in community Facebook groups. Read Google Business reviews and reviews on third-party sites like the Better Business Bureau, Yelp, and Trustpilot to find a pawn shop that will offer you a fair price and a positive experience. 

3. Be prepared to negotiate

Get offers from multiple pawn shops and other jewelry buyers and negotiate a higher payout. 

​​Any receipts, certificates, or paperwork you have on your jewelry can also be used as leverage. 

Feeling shy? Try: “Can you do better than that?” when they make the offer. Be prepared to politely pack up your item and walk away — and be prepared for a counter-offer to come at you then.

How to get a pawn loan

If you aren’t ready to part with your jewelry but need immediate cash, some pawn shops offer pawn loans. 

Essentially, the pawn shop lends you money, up to a certain percentage of the value of your jewelry, and holds onto your jewelry as collateral. 

According to Intuit Credit Karma,² interest rates on pawn loans range from 5% to 25% and typically have loan terms of 30 to 60 days.

Pawn loans are not based on your credit score and will not hurt your credit score if you are unable to pay them back. However, the pawn shop will keep your jewelry if you don’t. 

Online companies like Diamond Banc also offer loans on jewelry.

Answers to FAQs about pawning jewelry

Is it better to pawn or sell gold?

If you need immediate cash, pawning gold to a reputable pawn shop is a solid option. Pawn loans are another option if you need cash but don’t want to part with your gold. 

If you aren’t in a hurry to sell, you will get more money for your gold by getting quotes from multiple gold buyers, including local cash for gold storefronts, online gold buyers, and jewelry stores. 

Do pawn shops pay spot price for gold? 

Pawn shops will not pay you the full spot price for gold, but rather a percentage of the spot price. In our experience, pawn shops typically pay between 25% to 80% of the spot price.

Are pawn shops a good place to buy jewelry?

If you are looking for unique jewelry at a lower cost than retail and you don’t mind paying for something used, pawn shops can be good places to buy jewelry, especially if you like vintage, antique or one-of-a-kind pieces.

Do pawn shops buy broken jewelry?

Some pawn shops may buy broken jewelry if they believe the piece is worth fixing or if it contains precious metals like gold that they can sell to a refiner.  

Bottom line: Pawning vs selling: Is it better to sell jewelry online or pawn?

If you need quick cash, pawning jewelry is a solid option, especially if you find a pawn shop in your area with positive customer reviews and a reputation for making fair offers. 

However, if you have the time, it’s worth getting quotes from multiple types of businesses — online gold buyers, local jewelry stores, cash-for-gold storefronts, and pawn shops. 

If you are thinking about pawning your gold, silver, or diamond jewelry — even broken jewelry — online gold buyers and recyclers offer a discreet process with high payouts.

Our No. 1 recommendation for selling jewelry is CashforGoldUSA, an A+ rated BBB company with decades of experience that offers a highest-price guarantee. 

Get started with CashforGoldUSA.com today >>

---

If you have a diamond ring or other diamond jewelry you no longer want, you might be surprised to learn that the resale value of a diamond is typically much lower than its retail price (what it initially cost in a store) and even its wholesale price (what jewelry stores pay for diamonds in bulk).

In fact, because diamond prices are so depressed thanks to the lab-grown diamond market and a struggling economy, you may get as little as 10% to 50% of the retail value of your diamond.

I recently met a woman named Phyllis who shared the gemological report for a 2.65 carat solitaire ring in 18-carat white gold that her ex-husband paid $15,000 for in 2017. The report from that year gave an insurance value of more than $26,312, and Phyllis told me she expected to get $6,500 in resale value.

We emailed the report to a local jeweler that specialized in buying diamonds, who replied that because the ring is color-enhanced, she could not buy it because there was no market for it.

While this may be disappointing, many people are selling their diamonds today before prices go lower.

Learn more about where and how to best sell your diamond.

In this post, we’ll explain:

What affects diamond resale value

1. Quality of the diamond
2. Demand for diamonds
3. Economic factors

Diamond resale value in today’s market

• How much do you lose selling a diamond?

How to determine the resale value of diamonds

• A diamond appraisal
• A diamond resale value calculator

Diamond resale value FAQs

Bottom line: Know the resale value of your diamond before you sell

What affects the resale value of a diamond?

If you’re looking to sell a diamond engagement ring or other diamond jewelry, there are several factors that may affect its resale price:

1. Quality of the diamond

The quality of a diamond is determined by four characteristics that all begin with the letter C: 

• Cut – The shape the diamond is cut into (some cuts are more in demand/valuable than others, and trends are always changing)
• Clarity – The fewer visible flaws and inclusions (non-diamond materials that get encapsulated in the diamond), the more valuable
• Color – Colorless diamonds typically command a higher price
• Carat  – The higher the carat weight, the more a diamond is worth

A diamond grading report from the Gemological Institute of America¹ or an appraisal from a GIA-certified gemologist can inform you about all of these qualities in your diamond jewelry. 

2. Demand for diamonds

The demand for diamonds fluctuates over time. Right now, in February 2024, the demand for diamonds isn’t very high. According to Rapaport News,² a leading outlet for diamond market information, sales have slowed in the U.S. in part because mined diamonds are facing strong competition from lab diamonds and fake diamonds like moissanite.

However, if you’re holding out on selling your diamonds hoping to get a much larger price in the future, you might want to reconsider.

“I tell people that if you put that diamond back in your closet and you wait a year or you wait two years, you are not going to hit the jackpot,” says Jonny Ritz, owner of the boutique jewelry shop Jonny Ritz & Co in Los Angeles. 

In other words, consider selling now before prices go even lower. Or, at least get what the diamond is worth now and invest that cash.

Ritz advises customers not to treat diamonds like an investment that might appreciate over time — in contrast to common investment vehicles like gold or silver.

3. Economic factors

The state of the economy has a large influence on the price you can get for a diamond, and right now, the economy is pushing the price of diamonds down.

More on that below.

Diamond resale value in today’s market

Diamond resale prices have been on a roller coaster over the past few years. Prices jumped 31% during the pandemic and peaked in April 2022 but have since fallen more than 30%, according to IDEX, which tracks global diamond trends.³ 

While the diamond market isn’t very strong right now, that isn’t the case for gold, which may make up the band or setting of your diamond jewelry. 

When looking at the resale value of diamond versus gold, gold is performing much better in 2024, sitting near its record high set in December 2023.⁵

How much do you lose selling a diamond?

Expect to lose between 50% and 90% of what you paid for your diamond at resale. The reasons include:

• Diamond buyers are really only interested in the center stone, which they can repurpose into other, more contemporary pieces of jewelry or custom items for their clients. The retail price you paid includes the design, smaller side stones, labor, and the retail experience. A diamond wholesale buyer or diamond exchange will melt the metal down to scrap.
• The retail price of a diamond is marked up from what the jeweler initially paid for it, sometimes more than 300% of its wholesale cost.⁶ Diamond buyers aren't going to pay you what you paid because they need to make a profit when they turn around and resell your diamond.
• There is often confusion about the total carat weight of a diamond ring or other jewelry. A common misunderstanding is that the jewelry owner believes that, for example, she has a 1-carat diamond ring, when in reality, the center stone is .5 carats, and the surrounding smaller stones total .5 carats. Most jewelers or jewelry buyers value the smaller stones very little — perhaps less than $100 total in this case — and are only interested in the center stone.

One of the reasons many women choose not to sell their diamonds or diamond ring is that the price they are quoted from a jeweler or auction site is much lower than they believe their rings to be worth.

That said, diamonds do have a vibrant resale market, and old jewelry, a ring from a divorced marriage, or inherited estate jewelry can bring much-needed cash when you need it.

We pulled some recent jewelry sales from February 2024 on Diamonds USA and compared them to a similar piece's estimated retail value:

0.65 carat halo diamond ring with I colored diamond

Estimated retail value: $2,800-$3,700

(Price varies depending on the clarity and cut of the diamond, metal purity, and retailer markup)

Resale: $1,575

2.7 total ct weight gold bracelet

Estimated retail value: $2,800-$6,000 (varies by retailer and style)

Resale: $1,200

Diamonds USA also offers this chart to help sellers understand what they can expect to make on both lab and mined diamonds:

How do you determine the resale value of diamonds?

At the end of the day, your diamond is worth what someone is willing to pay you for it at that moment.

You can always walk into your local jeweler and see if they will buy your jewelry or loose diamond for cash — and take the offer on the spot.

However, it can be more profitable to sell a diamond ring or other diamond jewelry online from one of the top diamond buyers, who will send a FedEx or USPS mailer to your door for free and overnight your item to their offices for evaluation, appraisal and quick payment.

Before you sell, there are a few ways to determine how much your diamonds might be worth in the current market: 

A certified diamond grading report

A diamond grading report is also known as a diamond certification or a lab report. It’s not the same as an appraisal, which we detail directly below.

A grading report is a document that states the technical specifications of a diamond. It’s produced by a small handful of independent, internationally-known labs, such as GIA.

These labs are independent entities, so reports are useful if you’re looking for unbiased information. To create the report, lab technicians take the diamond out of its setting and examine it with specialized equipment.

You should get a diamond grading report if you want to be confident in the exact specifications of your diamond. Some diamond buyers require that the stone be certified before purchase. 

Reports are also useful if you want to insure jewelry or get a loan on jewelry. If you are looking to sell a higher-value diamond in particular, a diamond grading report may be worth it to give you more specific information about the value of the stone.

However, it’s important to note that a grading report won’t provide you with a retail or resale price.

A diamond appraisal

In contrast to a diamond grading report, which is detailed above, a diamond appraisal will list the replacement value for the jewelry, or the retail price you’d pay today.

So if you purchased a diamond princess-cut ring for $4,000, for example, the appraisal should state a value around $4,000.

It’s important to note that an appraisal won’t list the resale value, which is typically between 10% to 50% of the retail value. 

During an appraisal, the jewelry will be examined, but the stone won’t be taken out of its setting. You’ll also receive the technical details of your jewelry. 

Since the price of an appraisal can sometimes cost $150 or more, they aren’t necessarily advisable unless your diamond is worth more than $1,000. 

A diamond resale value calculator

While there are accurate calculators available online for commodities like gold and silver, there is no such public tool for the precise value of a diamond. There are sites that can give you an estimate, but the value you may be able to receive for a particular diamond can vary considerably.

That’s because there is no public exchange for diamonds like there is for gold or silver. Those within the industry have access to more information about current diamond values, but again, the price of a diamond is contextual. 

That’s why it’s best to shop around for the best resale price if you have the time, getting quotes from online diamond buyers and at trusted local pawn shops or jewelry stores.

Diamond resale value FAQs

If you want to sell diamonds, here are some things you should know:

Do diamonds lose value after purchase?

Yes, in the vast majority of cases, diamonds lose value after purchase.

“It’s like when you buy a car,” says Karen Taub, who founded Madison 501, a private-label jewelry manufacturer in New York. “Unfortunately, there’s a loss of value as soon as it changes hands.” 

There are a number of reasons why they lose value immediately. Wholesale sellers add some markup to the price after they receive it from a manufacturer. On top of that, retail sellers may add their own significant markup.

Retailers are able to do that because when people buy diamond jewelry, it’s often for a personal or emotional occasion, such as an engagement, wedding, or anniversary. This drives people to buy brand-new jewelry that’s special and unique — which depresses the market for second-hand diamond pieces.

Taub says that whenever a diamond ring is sold back to a jeweler, it’s often taken apart and melted down to make a brand new piece of jewelry. This adds additional costs for the jeweler and is another reason why the resale price isn’t as high as the retail price.

Do lab-created diamonds have any resale value?

Right now, lab-created diamonds have very little resale value, despite their growing popularity as a mined diamond alternative.

Very few online diamond buyers will pay you for your lab diamonds. 

How do you determine the resale value of a diamond ring?

If you have diamond ring in-hand and you’d like to figure out its value, you have several options:

1. Have the diamond ring certified by getting a grading report from a reputable organization like GIA. This report won’t come with an estimate of its dollar value, but you can use the report to help get an accurate dollar value during an appraisal with a jeweler or other buyer. 
2. Send your diamond ring to an online diamond buyer that will provide you a free, insured mailer. We recommend A+ rated Diamonds USA, which pays within 24 hours of accepted offer.
3. Take your jewelry to local jewelry stores and pawn shops to get a range of quotes. 

In general, expect to receive anywhere between 10% to 50% of the original retail price you paid. 

Do used diamonds lose value?

Diamonds generally lose value immediately after purchase. The only exceptions are very rare or unique diamonds that are quite high in price.

The value of a diamond over time will depend on the market conditions for diamond resale. While you’ll typically always lose value in reselling a diamond, there are better times and worse times to sell. This often changes with the state of the economy, as the price of luxury items like jewelry tend to decrease in economic downturns.

Diamond value is also based on the supply of diamonds from the major diamond companies. The success of lab-created diamonds in the past few years has added another wrinkle to the market. Lab-created diamonds are generally driving down the price of diamonds, since they’re so much cheaper to produce.

Is there a diamond value calculator?

While there are accurate online calculators for gold, silver and other precious metals, a diamond value calculator is only available to members of the trade because there is no standard diamond exchange (or central location where diamonds are bought and sold) accessible to the general public.

If you are interested in selling a diamond, the price of diamonds is best understood through the quality as determined by the 4 C’s, and by being evaluated by a respected laboratory, such as GIA, which uses industry-specific equipment.

Armed with the lab report, bring it to a  GIA-certified jeweler who can inspect, evaluate, and offer a price.

However, if you want to sell diamond jewelry set in gold or another precious metal, you can use a calculator like the one on CashforGoldUSA's website to determine how much the precious metal content is worth:

Bottom line: Know the resale value of your diamond before you sell

Diamond prices have been steadily falling since they peaked in April 2022 and are expected to continue falling as lab-grown diamonds increase in popularity and drop prices. 

If you’re looking to sell diamond jewelry, you have several options. If you’d like to sell your diamond in person, we recommend checking Yelp and the Better Business Bureau for reputable pawn shops and jewelry stores in your area. Make sure to get quotes from several businesses, as what they offer you may vary.

If you’d like to get a competitive offer without leaving your home, you can mail your jewelry to a number of online companies. Compared to brick and mortar stores, they have less overhead and more competition, both of which increase the prices they offer sellers.

We recommend the family-owned Diamonds USA in particular among online companies for a number of reasons. Diamonds USA: 

• Has an A+ rating from the Better Business Bureau
• Sends you a free mailer insured to $150,000 to send in your jewelry
• Pays within 24 hours
• Offers a 10% bonus if you accept the sale within a week

That said, there are other sites and buyers you can look into in addition to Diamonds USA, especially if you have estate jewelry, a higher-end piece, or additional metals you would like to sell.

To learn about other buyers, marketplaces, and recyclers, check out 16 best diamond buyers “near me” and online.

---

SOURCES

1. “Analysis and Grading,” GIA. https://www.gia.edu/gem-lab
2. “Why retail jewelers aren’t buying,” Sept. 26, 2023. Rapaport. https://rapaport.com/analysis/why-retail-jewelers-arent-buying/
3. IDEX Diamond Index. http://www.idexonline.com/diamond_prices_index
4. “Treasury targets price cap violation network and implements G7 ban on Russian diamonds,” Feb. 8, 2024. U.S. Department of Treasury. https://home.treasury.gov/news/press-releases/jy2085
5. “Why gold prices are hitting records,” Dec. 5, 2023. Wall Street Journal. https://www.wsj.com/finance/commodities-futures/why-gold-prices-are-hitting-records-5772ec5f
6. “Hidden camera video reveals just how high diamond markups can be,” March 30, 2017. Yahoo News.