Pawn Shop Diamonds: Tips For Buying The Perfect Ring

Posted on: 29 December 2014

If you want to purchase a diamond ring for your wife or significant other, then you may consider buying the item at your local jewelry store. Large jewelry stores often mark up their diamond jewelry by a large margin. Some jewelers even use diamond filling techniques and artificial lighting in their stores to make their diamonds appear more spectacular than they really are. These markups and selling tips may make you spend more money on a diamond than you really should. If you want the most for your money, then consider purchasing a diamond ring from your local pawn shop. Follow the tips below if you decide this is your best option.

Barter for a Lower Price

Pawn shop owners buy and sell a great deal of jewelry, and they make money by offering sellers fair prices on items brought into the shop. The price is often about one-third of the value of the item. This allows the pawn dealer to mark up the price so a profit can be gained. In many cases, sold or pawned items are held for 30 to 90 days. This means that the profit covers the original cost of the item as well as the storage space.

Pawn dealers want to make as much as they can on jewelry items, but they also want to sell items as quickly as possible so new merchandise can be brought into the store. This means you can barter with the pawn shop owner to reduce the cost of a diamond ring you see. Generally, items that have sat in the store for several months will be cheaper than jewelry that has been recently sold to the pawn dealer. If you understand that jewelry is often marked up two-thirds of the original cost, then you may be able to ask for a 30% to 50% discount on the item.

Stick to a Budget

If you decide to barter with a pawn shop over the price of a diamond ring, then it is wise to set a budget for your purchase before you start shopping. Consider bringing cash to the shop so you can be sure that you do not go over your budget amount. When you find the ring you want, start bartering on the price.  

When you negotiate, be polite, talkative, and confident. Also, do not insult the pawn broker by offering to buy the diamond ring for an extremely low price. This will help you to build a positive rapport with the shop owner and you will be far more likely to receive a fair price. If the pawn broker bargains with you, then make sure to be firm when your budget amount is reached. Many people become emotionally attached to items they barter over. This can lead to perceived power struggles and the need to win the negotiation. You may then regret your purchase once the negotiation is over.

Inspect the Diamond

If you find a diamond ring that you like at your local pawn shop, then consider inspecting the diamond in the ring yourself for more information before you purchase it. Pawn shops may accept jewelry that features lab grown diamonds, cubic zirconias, white sapphires, and topaz rocks that look a great deal like diamonds. This means you may inadvertently purchase a ring that does not contain a natural diamond. In most cases, the pawn shop owner will be able to tell you what type of jewelry you are purchasing, but missing paperwork and general mistakes can be made.

When you inspect the stone in the ring, try to fog it up by breathing on it. Condensation will not build on a diamond, and the water from your breath will dissipate almost immediately. Fake diamonds and other stones will fog up for several seconds. You can also read print and see objects clearly through artificial diamonds. This is not the case for real ones.

Use a Jewelry Loupe

Using a jewelry loupe is a good way to inspect a diamond as well. The pawn shop owner may have one of these devices or you can purchase one from your local jewelry store beforehand. Set the loupe up to your eye and peer into the diamond. Look to see if the diamond contains very small flecks of yellow or mineral deposits within the stone. These imperfections indicate that the stone is most likely a natural diamond. Also, so will a small  identification number within the diamond. These numbers are added to diamonds with lasers for security reasons.  

If you want to save money on a diamond ring purchase, then consider shopping at a pawn shop. When you look for the perfect ring, just make sure to negotiate with the pawn dealer and inspect the stone in the ring.