However, this is not the ideal solution in the long term. Sooner or later, the pile of available oddments to sell will be diminished, plus trading in this way often only releases a fraction of what the items are worth. In addition you may be reluctant to permanently get rid of certain things, especially jewellery and those that hold sentimental value.
Fortunately, there is another way. Some professionally accredited organisations such as Borro will provide secured loans against valuable items, meaning you can free up some of their value without having to sell them.
If you have any of the jewellery discussed below, you could be using it to gain access to significant sums of money both quickly and easily.
1. Gold and other precious metals
Metals like gold will never go out of fashion, which is why they hold their value and can even gain more during tough economic times. Consequently, they should also be worth quite a large amount when a loan is taken out against them. Heirloom rings usually have a lot of metal in them, so take a look around and see if there are any you could send for valuation. In addition, watches are often made from precious metals so could be worthwhile candidates.
Check carefully for platinum and white gold too – and don’t forget that silver jewellery can also be valuable at a time when metal prices are going up. Using the hallmarks will allow you to do all this easily.
Jewellery from pendants and bracelets to earrings and engagement rings can feature gemstones, which may substantially raise the value of a relatively simple piece so that you can take out the loan you need against it.
However, ensure that the stones are real and not paste copies if you want to do this, as replicas will not be worth nearly as much as their genuine counterparts. A good online pawnbroker will be able to provide you with a valuation first if you are not sure whether or not the jewellery you own features real gemstones.
Some gemstones – such as sapphire and emerald – may be worth more than others including opal and jade, but remember that the value will also be dependent on things like size and clarity.
Diamonds have their own category here because they are like the Holy Grail of jewellery against which to secure loans. Even a small diamond can be worth a substantial amount and lots of items feature them.
Don’t forget to take a look around for earrings, as even pieces of this size can harbour relatively large diamond weights. Just as retailers would when looking to sell diamonds, experts will consider cut, clarity, colour and carat weight when carrying out a valuation for your loan, so always pick out the diamond that looks best to the naked eye first. Loose diamonds will be considered too, so don’t be put off if their settings were lost long ago.
How taking out a loan using jewellery works
To take out a secured loan against you jewellery, you just need to:
• Apply to your chosen providers – we recommend trying more than one for comparison purposes.
• Check the valuation and loan quote – good providers will use accredited professionals and send you two copies of the valuation report, as well as all the terms and conditions of the loan clearly laid out.
• Accept the loan contract – your lender will provide details of how to do this and you should receive the money the same day.
You can then start to repay your loan at the agreed rate and, once this stage has been completed, your lender will send your jewellery straight back to you.
Why not take a look through your jewellery box today and see if you could be making money without having to sell anything?