The current economic times have made it difficult for most people to make their payments. Getting a loan from the bank is also not easy. Therefore, more people have resorted to getting asset loans. The asset loans are given in exchange for items like watches, engagement ring, and diamond among other valuable items. Once an individual has paid back the loan, he is given back the collateral. If you choose to use your diamond as collateral, then you should choose the required procedures. Click here on why you should get a diamond appraisal before you sell. The first thing you have to do is have the gem valued by an appraiser. Here are the steps followed when appraising a diamond.
There are certain factors that determine the value of the diamond. Such factors include clarity, shape, carat and color. If you want to sell your diamond, then you must know these factors about your diamond. It will help you know just how much you will sell it. Furthermore, it will show that you are knowledgeable about what you are selling. The clarity refers to the in which the diamond is clear. There is a high-powered microscope used to determine the clarity. The color is determined by using a grading lamp. The carat is the weight of the diamond. A larger stone is valuable than a smaller one.
After the diamond has been assessed, the gem will be taken for inspection. The stones on the diamond will undergo an appraisal. The metal that has been used is assessed regard to t design and the designer. Rings that have been made by brand designers are more valuable. The total value is added to that of the gemstone. As such, you will know how much your diamond is worth. You will not be in a position to determine the price without going through the appraisal. When you do the appraisal, you will have an easier time when you go to the market.
Market value assessment
Once the gem has been inspected, it will then be appraised according to the market value. The diamond is compared to the other diamond in the market. The similarity index is used in doing the comparison. After determining all the factors needed for the appraisal, a report is generated. You will get an estimated offer that that is the value of your gem. If you are in agreement with the appraiser’s valuation, then you can get a loan or pawn your item.