How do Pawn Shops Come Up with Their Buy Prices?

12
Found 7th Feb 2015
Took an 18ct white gold and diamond ring in (.1ct of diamond, 3mm thick), and was offered £40 - because 'they don't take into consideration the diamonds'. i bought it second hand as no scrap, and paid £150. Did i get robbed, or did the pawn shop make me a silly low offer?
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12 Comments
That's the drawback selling for scrap and to be honest a 0.1 carat diamond is worth not a lot.
they pay about 25% current scrap value. it's a big money earner for them!
Original Poster
Argoj

That's the drawback selling for scrap and to be honest a 0.1 carat … That's the drawback selling for scrap and to be honest a 0.1 carat diamond is worth not a lot.



i should add, they sell jewellry in there - my ring is much nicer than some of the stuff in their window. so im guessing they would try to sell it first?

also i know retail is way over inflated but ive seen similar for £600 new.

Original Poster
FMJ1000

they pay about 25% current scrap value. it's a big money earner for them!



ah ok. so how would i get a better scrap rate?
espirit77

i should add, they sell jewellry in there - my ring is much nicer than … i should add, they sell jewellry in there - my ring is much nicer than some of the stuff in their window. so im guessing they would try to sell it first?also i know retail is way over inflated but ive seen similar for £600 new.



I understand that but the mark up on jewelry can be extortionate. Google a 0.1ct loose diamond and you will see the prices. If it's that nice then try and sell it yourself, put it on the bay at a starting price of the scrap value you were offered and try your luck.
Original Poster
Argoj

I understand that but the mark up on jewelry can be extortionate. Google … I understand that but the mark up on jewelry can be extortionate. Google a 0.1ct loose diamond and you will see the prices. If it's that nice then try and sell it yourself, put it on the bay at a starting price of the scrap value you were offered and try your luck.




ok thanks, honestly it's turning a bit yellow where the rhodium has gone, so i'd have to put more money into it before selling it. not sure its worth it. i'm learning a lot about the jewellry industry between this and getting my fiancee a ring set for our engagement and wedding.

i have found a really nice platinum set for £850 used on eBay, both a trilogy ring set with .5ct diamonds, band looks new. and a platinum wedding ring (originally h samuel, but looks nicer than their normal tat) for £325. can see some minor scratches on it, but that could just be cos it's magnified.

if i put it in a new box, do you think my fiancee would ever realise it was used?
espirit77

ok thanks, honestly it's turning a bit yellow where the rhodium has gone, … ok thanks, honestly it's turning a bit yellow where the rhodium has gone, so i'd have to put more money into it before selling it. not sure its worth it. i'm learning a lot about the jewellry industry between this and getting my fiancee a ring set for our engagement and wedding.i have found a really nice platinum set for £850 used on eBay, both a trilogy ring set with .5ct diamonds, band looks new. and a platinum wedding ring (originally h samuel, but looks nicer than their normal tat) for £325. can see some minor scratches on it, but that could just be cos it's magnified.if i put it in a new box, do you think my fiancee would ever realise it was used?



Just take it to a small independent jewelers, you should be able to get it cleaned and polished for £15 to £25.
Well 18ct scrap is £18.89 a gram at Hatton Garden Metals and they are one of the better ones in the trade. So if you weigh it yourself then you can see what the actual scrap price is and then you can go from there
Original Poster
ewan231210

Well 18ct scrap is £18.89 a gram at Hatton Garden Metals and they are one … Well 18ct scrap is £18.89 a gram at Hatton Garden Metals and they are one of the better ones in the trade. So if you weigh it yourself then you can see what the actual scrap price is and then you can go from there




perfect that's what i was after. thanks!
Original Poster
Argoj

Just take it to a small independent jewelers, you should be able to get … Just take it to a small independent jewelers, you should be able to get it cleaned and polished for £15 to £25.




will do cheers
espirit77

ah ok. so how would i get a better scrap rate?



I don't think you can. just check prices yourself and try and haggle perhaps. independents probably offer more chance.

you need an account to deal directly with the scrap guys.
Original Poster
FMJ1000

I don't think you can. just check prices yourself and try and haggle … I don't think you can. just check prices yourself and try and haggle perhaps. independents probably offer more chance. you need an account to deal directly with the scrap guys.




bit of a racket isn't it. the high st jewellers mark up the gold/diamonds 400%, then if you need to sell it again for whatever reason, the pawnbrokers mark it down 400%.

guess this is why people say, just buy used or vintage and pretend it's new - ha!
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