Whether you're needing a bit of financial help, looking to upgrade your engagement ring, or getting divorced, selling or pawning your diamond ring might be a good option.

We all know that pawnshops are a great place if you're looking to get your hands on some quick cash by selling a few unwanted pieces of furniture you no longer have space for, but is it the best place to sell your diamond ring or any other high-end jewelry for that matter at?

Pawnshops and pawnbrokers usually lend money against the value of your engagement ring and when you pay your loan you receive your diamond ring back.

How pawn shops evaluate your ring

Pawnshops usually price a piece of jewelry based on what they think it is worth and importantly, what the demand for such an item is. While evaluating your ring, the pawnbroker will first weigh it and then determine its purity. For gold items, this is measured in karats. For rings that contain a gemstone, the pawnbroker will then add the value of the stone onto the final price. Based on authenticity and type of stone, the ring will appreciate accordingly.

Consequently, do your research properly. Have an estimate of the value of your ring before going into a pawn shop, this will help you negotiate and reach a good deal if you do want to sell your diamond ring.

Is it worth it?

People shop at pawn shops to get great deals on pre-loved items. A person will never expect to pay a market-related price for an item at a pawn shop. They expect heavily discounted prices. This, in turn, means that pawnbrokers need to keep their costs down for the items they buy-in. They also need to make a profit from the items, pay rent, salaries, and everything else that comes with owning a business.

It is also important to keep in mind that pawnshop owners are not diamond experts or appraisers, making it difficult for them to recognize and accurately attach a value to a diamond ring.

If you have to sell at a pawn shop, here's what to do

For people facing serious financial problems who need to sell their diamond ring as soon as possible, a pawn shop is a great option.

For these cases, you must upskill yourself on the process of how a pawn shop works:

• For customers who have opted to pawn their ring as opposed to outright selling it, make sure you are aware of the full cost of the loan. Pawnshop loans can become incredibly expensive if you default on payments, giving rise to extra fees and very high-interest rates.
• Make sure the pawnshop that you have decided to use is highly recommended and offers exceptional customer service.
• Learn to master the skill of negotiating. Before you accept the offer, negotiate with the pawnbroker to see if you can get a better deal for your ring.

Selling your engagement ring to a pawn shop is a good idea but make sure you do your homework on what your ring is worth and don't be afraid to negotiate.

Remember, if you are strapped for cash there is a huge variety of other items that are in high demand at pawn shops that will bring in great cash. These include items like electronics such as TVs, PlayStations and DVD players, furniture, smartphones, cameras, tablets, laptops, and sports, and gym equipment to name a few.