I went to the pawn shop to sell my diamond ring and got a ridiculous price offer for it! Could someone please explain why there is such discrepancy in prices?

Just as you described, pawn shops usually offer rock bottom prices for second hand jewelry, as low as 10 percent of the original price you've paid! The reason for this is that pawn shops work in a very unique matter of continuous and rapid merchandise circulation. Meaning, that their sole purpose is to buy the jewelry for a very low price and rapidly sell it to the next customer for rock bottom prices as well. Pawn shops really hate seeing a piece of jewelry, or any merchandise for that matter, lying around for a long period of time. Note that they would rather sell your diamond ring in a faster manner than wait to gain a good profit for it, thus preferring higher liquidity. It is therefore strongly recommended to avoid selling your diamond jewelry to pawn shops, although it might seem like the most comfortable and easy way to go about when selling your diamonds. If you desire to maximize the value for your diamond ring, which I am sure you are, then you are best to try offering your diamond engagement ring for sale online.

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You must first understand how pawn shops operate. Don't let the word "shop" confuse you – pawn shops are actually a big flea market disguised as a legitimate store. The highest priority in the pawn shop's point of view is to keep the merchandise distributed. This is due to the fact that money gained from sales on their behalf will immediately go towards investing to buy more merchandise for the pawn shop. Often, money that they received from selling their merchandise will also go towards giving out loans, but that's beside the point. In order to maintain their quick pace of supply and demand, the pawn shop needs to keep the price tags on their merchandise significantly low. This way they enable prices to be more affordable and thus more people are likely to buy from them. Although pawn shops are not so concerned about making a big profit off of you (as they will eventually sell the diamond jewelry purchased from you at a ridiculous price as well), they are definitely not interested in losing money! That's why they have to purchase the diamond jewelry from you at a very low cost. If you want to get rid of your diamond jewelry as quickly as possible, I will recommend selling it to your local pawn shop. However, if you are interested in gaining a considerable amount of money in return for your diamond jewelry, which I am sure you are then do not by any means sell your diamond jewelry to a pawn shop. If you feel that your diamond is worth much more than what the pawn shop is willing to offer you (which is most probably going to be the case), then waste no time with them and continue on to the next potential buyer. Even selling your diamond jewelry to a jewelry store will be much more profitable than going to a pawn shop. Also, it helps tremendously if you know, ahead of time, what your diamond jewelry is actually worth. Try looking online for more information on diamond jewelry and its value, a good source is this page www.zoara.com/learning_center

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