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Theres no such thing as depreciation on precious metals. You pay retail for it, this retail figure includes profit to the retailer, you wont recoup this unless the metal prices greatly increase. Its just like the proverbial "drive a car off the lot and it goes down in value by X." You dont get to sell something for what you paid for it. Its also not WORTH whatever you paid for it. So many people fail to understand this. The other factor is the CURRENT precious metal price. This is also known as its melt value. Some places will pay you this or around this.
Basically your jewelry is only worth the melt value, whatever you paid above that was due to a variance in melt value over time plus profits to the retailer. This is especially evident in sterling jewelry which is a RIPOFF. Youre buying 2 bucks worth of sterling silver in that ring but paying several hundreds if it is "designer."
I am sorry, I used the wrong terminology. I hope you can find it in your heart to forgive me . . . or else it's harakiri time for me.
Diamonds don't generally depreciate in value. That's why when mine fell out of my engagement ring and was lost, my insurance company gave me the full appraised value, even though the appraisal was done when the ring was purchased, ten years earlier.
Not quite. Diamonds are a terrible investment. Buying one is like buying a new car; they lose value as soon as you walk out of the jewelry store with one because of the ridiculous markup on them (around 100-200%). I have sold a couple of my diamond rings, including a $4000 wedding set, and came out with only $1500. I took it to jewelry stores and couldn't even get an offer. Additionally, appraisals on diamonds are tremendously bloated figures. Count your blessings you were able to get that much for your ring. When I got married in June, I asked for a white sapphire solitaire, not a diamond. I got a 3 ct. natural stone for $800, which has nearly the hardness of diamond without the inflated price tag.
so, store gives her a $90 ring, that she has to then buy back for $90?
it isn't like pawn stores go and value the items.... if she knew the ring was worth that much, she could have used a real jewelry store/consignment store
there's nothing that actually said the ring was "real", real as in not a fake ring, not questioning that she didn't sell "a" ring, we just don't know what kind of ring. She said it was worth $2000, the pawn shop said it was worth $90, she took the deal so she accepted the $90 valuation
Of course they do. And the pawn shop didn't say it was worth $90, they loaned her $90 with the ring as collateral.
Quote:
Originally Posted by Zymer
Not a $90 valuation- pawn shops generally loan about 10 cents on the dollar on the value of the item. So, she said $2000, they said $900...I pawned something once, but it was because I was in dire straits and needed to buy groceries, I was hungry and metal isn't particularly nutritious. That's what I got, 10 cents on the dollar.
If she bought it for $2000, $900 isn't far off. And $90 is 10%...
Quote:
Originally Posted by MaryleeII
How does a ring "depreciate"? I inherited some jewelry that appraised for insurance at $100,000. They said its age added to its value since it dated from the Victorian/Edwardian era.
Also, lets face it, $90 is chump change in today's economy. The only time I ever pawned some jewelry was when my DS faced jail time or pay a fine. It was cash only, you can't pay a court fine with a credit card! I pawned a ring for $800 then re-claimed it later....long story
It depreciates like furniture or cars or anything else; it loses value until its old and rare enough to be appreciated for what it is. A piece of furniture from that era would be worth a lot as well. Similarly, your bedroom set you bought in 1998 is worth a lot less than you paid for it, but if kept nice, a 100 year old set might have more value.
Quote:
Originally Posted by Disgustedman
Most shops will give 10% of the value....That's why the $90 puzzles me.
If she paid $2000 retail, then its likely worth 900-1100 in the Pawnshop's display case. $90 makes sense based on that rule.
There are some jewelry pieces within my family that are worth significantly more than what they were bought for. But only because they were bought no later than the 40s and since then diamond prices have shot up. But then again the price could drop tomorrow.
How does a ring "depreciate"? I inherited some jewelry that appraised for insurance at $100,000. They said its age added to its value since it dated from the Victorian/Edwardian era.
Also, lets face it, $90 is chump change in today's economy. The only time I ever pawned some jewelry was when my DS faced jail time or pay a fine. It was cash only, you can't pay a court fine with a credit card! I pawned a ring for $800 then re-claimed it later....long story
I agree. Jewelry does not "wear out" so it does not depreciate. It is only worth less than you paid for it because private buyers do not pay retail for second-hand goods. I sold a bunch of old gold jewelry that I had accumulated since I was a kid. I got thousands more than I paid for it due to the increased value of the gold.
I agree. Jewelry does not "wear out" so it does not depreciate. It is only worth less than you paid for it because private buyers do not pay retail for second-hand goods. I sold a bunch of old gold jewelry that I had accumulated since I was a kid. I got thousands more than I paid for it due to the increased value of the gold.
Thats not true, depreciation is absolutely possible. Depreciation isn't because the jewelry "wore out", it refers to the loss in value if the price of gold, diamonds, gems etc... drops after you purchase the item. Is it common, idk, but it definitely happens.
How does a ring "depreciate"? I inherited some jewelry that appraised for insurance at $100,000. They said its age added to its value since it dated from the Victorian/Edwardian era............
A few types of antique jewelry have gone up in value, mostly if they are known maker. It is because they are antique and can't be replaced with an identical new one. Most antique jewelry doesn't have any sort of special value. Southwestern Indian jewelry, if is is a signed piece by a famous artist, might appreciate, but most of it doesn't.
The "$90" ring didn't depreciate from it's real value. What it did was loose the jeweler's mark-up. Diamonds are dirt cheap on the wholesale level. They just aren't worth much. If the jeweler was selling that ring for $2,000, it probably didn't cost over $100 to make. The jeweler probably bought a hundred just like it in a bulk lot for $200 each. The ring is still worth about $200, but not to sell to a wholesaler. The wholesaler would give $100 for it, because he can make one for $100 and can't get over $200 when he sells it.
Diamonds are very common. It is simply a myth that they are valuable. Every woman in American owns at least one diamond and maybe several more than that. They are more common than a print torn out of a wall calendar.
Melt value? You can make a hundred rings from an ounce of gold, so in the neighborhood of $10 for the gold.
so, store gives her a $90 ring, that she has to then buy back for $90?
it isn't like pawn stores go and value the items.... if she knew the ring was worth that much, she could have used a real jewelry store/consignment store
there's nothing that actually said the ring was "real", real as in not a fake ring, not questioning that she didn't sell "a" ring, we just don't know what kind of ring. She said it was worth $2000, the pawn shop said it was worth $90, she took the deal so she accepted the $90 valuation
having worked in a pawn shop years past I can tell you the pawn shop probably knew what the ring was worth and if it was real but they don't loan you what it's worth. They are a business not a charity they want to make a profit if you don't pay back your loan. They offer low loans and a Percentage of people don't pay them back and lose their items.
Diamonds are a commodity. Their value fluctuates based on the needs of the market. The particular details of a diamond will affect it's overall value as well. Also, pawning jewelry is different than selling it. I worked for a jeweler & we bought "used" jewelry. For us, unless it was a very, very unique and special setting, the pieces were worth the sum of their parts. The diamond had a value (or whatever stones were involved), and the gold had a value. They were usually (always?) valued very far below a retail price. Keep in mind, the buyer needs to turn them around and make at least a modest profit. So at a pawn shop, the loan is made using the piece as collateral--the ring in question would have been evaluated roughly (you cannot, cannot, cannot get an accurate value for a diamond unless you remove it from a setting to check for defects and to get an accurate color rating) and a comfortably low cash offer made, so if the deal is defaulted on, the pawn shop can then sell to make a tidy profit. Most of the diamond rings I saw were pathetically over-valued. It's criminal. Retail markups and "mall" stores are in the 300-400-500% range at least. Then inflated appraisals are prepared to further stroke egos. I cannot tell you how many times I had to break the news to some person convinced they had a $10,000 piece of jewelry, when, in fact, the top dollar we could offer was $1200 at most. And we would share how we arrived at the value. Most would leave the store in a huff, only to come back because our offer was best.
And, FYI, your insurance will "make you whole." Many insurance companies will NOT give cash for a lost diamond or other piece of valuable jewelry. They look to buy a similar diamond to replace the piece, which is usually significantly cheaper than a cash payout for the appraised amount, unless your insurance specifically states otherwise (or you state requires it). We used to get requests from insurance companies & make up replacement rings, etc., so we would get copies of appraisals (because they had specifics of the pieces and photos). They didn't automatically spend the $$$ listed--they replaced the piece. BIG difference!
You should , believe me when anyone is at that level they are truly desperate .
NO one "banks" there . Jeez . That's a last resort or they are a thief unloading things quick . Unfortunately the Pawn Shop looks to be the thief here .
Must be a nice enough ring , for them to pull a stunt like this .
On second thought ,, its not so much the $$ value at this point whether its 50.00, 2,000.00, or 50,000 it's that they have it , you know it , I know it , THEY know it .
Very likely they sold the ring and "lost" the ticket in a very tiny fire.
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