Taking out a secured loan instead of selling diamond rings can be a great way of releasing their value without having to part company with them completely. As long as you use a professional loan provider such as Borro that employs qualified experts to value your assets, you can be sure that you will get a reasonable quote and that your jewellery will be safe before the time comes for it to be returned to you.
However, how will you know what your diamonds are worth before applying so that you can make an informed decision about which quote to choose? Our brief guide below provides details on the methods that experts from some of the world’s top gemmological societies use when valuing diamond jewellery, focusing on four key considerations.
1. The clarity of your diamond
• Does your diamond have visible cracks, non-diamond material or air bubbles beneath its surface? These are called inclusions and the more a gem has, the less valuable it will be. If yours has none that are visible to the naked eye, you should get a good sum of money in a secured loan against it.
• Are there any pits, chips and scratches on the diamond’s surface? Blemish-free diamonds will command the most value.
• Gemmological experts will examine your diamond using 10X magnification to see what’s invisible to the naked eye, but don’t worry – inclusions at this scale can be used to identify each individual diamond and should not significantly lower its value.
• Your diamond will be classed as pure or flawless to heavily included on the paperwork you receive back.
2. The carat weight of your diamond
• How big are the diamonds in your ring? The larger the size, the higher the carat weight and the more it will be worth. Each full carat is worth a total of 100 points – for example, a diamond that measures 25 points is ¼ carat or 0.25ct in weight.
• Is your diamond ring a solitaire or does it feature more than one stone? If it is the latter, the valuation you receive will be based on the total weight of all the stones after they have been added together. You could therefore find that lots of tiny diamonds add up to a higher carat weight than an average solitaire.
3. The cut of your diamond
• How brilliant and dazzling is your stone when you look directly at it? If it is very reflective, you should find your valuation will identify a good cut. This is because expert cutters will shape gemstones so that they absorb and reflect light, rather than letting it leak back out.
• Gemmologists measure cut on a scale ranging from excellent (sometimes ideal cut) to irregular and the closer to excellent you can get, the more you are likely to receive when you secure a loan against your diamond.
• Are you confusing cut with shape? The latter will not have as much bearing on value, as it simply refers to the setting in which it can be placed.
4. The colour of your diamond
• Is your diamond pure like a drop of water, or coloured? The clearer it is, the more value it will hold. A gemmologist will measure this by eye on a scale from D (no colour at all) to Z (deeply coloured).
• Don’t forget that unusually coloured diamonds (classed as ‘fancy’) may be sought-after and therefore especially valuable if they are rare.
Some final advice:
• Always use professionally accredited loan providers when borrowing against your diamonds for added peace of mind.
• Take time to consider any quotes and do not be rushed into making a decision. Reputable companies will send you both an electronic quote and a valuation in paper form to allow you to make an informed decision.
• Check the terms and conditions so you know exactly when you can expect your diamond ring back. Good loan providers will contact you to arrange delivery as soon as the final sum has been repaid.