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giving you more okay so let's talk about
pawn shops how much are they gonna give
you for a diamond ring right you go you
have this diamond ring maybe it's an
engagement ring maybe it's a solitaire
maybe it's whole set and you have this
and you're like okay I have this
appraisal and this appraisal says it's
worth ten thousand dollars and I got a
deal at it on it at the jewelry store
and I got it for seventy nine hundred
dollars how much will a pawnshop give me
for it well you know I gotta tell you
the pawn shop doesn't really care about
those two numbers they don't care what
you spent on it new and they don't care
what an appraisal says because it
doesn't have anything to do with what
the ring is actually worth right now you
know
just real quick about the the jewelry
industry I have some things I need to
explain before we go any further because
I want you to understand the numbers a
jewelry let's take a jewelry store let's
say it's a mall store let's say it's
like an Ashcroft and oak or something
like that you know during this big mall
do you know how much rent is in the
malls there you know ten thousand
dollars a month
fifteen thousand dollars a month twenty
five thousand dollars a month or more
all right
and when you're in the business of
selling jewelry that means just to cover
the rent they have to make twenty five
thousand dollars in profit a month just
to cover the rent and then you have all
the employees and they have to pay them
and they usually work on Commission so
let's say you have another twenty five
thousand dollars in labor you know to
pay people to come in every day and sell
your jewelry so now you're up to fifty
thousand dollars a month this jewelry
store has to make just a break even and
I'm not talking about selling fifty
thousand dollars worth of stuff they
need to sell fifty thousand dollars in
profit meaning they probably have to
sell you know like eighty thousand
dollars worth of stuff a month but then
let's talk about all the other stuff you
know the supplies the electricity me the
Internet the back-office all
stuff you know these jewelry stores have
to make like $80,000 a muffin and margin
just to keep the doors open the lights
on so once you understand like how much
money they have to make just to stay in
business and that's not even talking
about being profitable that's just a
stay in business there's only one way
they're gonna make the money and that's
by charging you a ton for that ring way
beyond what it costs them you know if
they buy a ring for $2,400 that's the
ring they're probably selling you for
$7,500 alright so when you understand
how much something costs brand-new and
then the mark-up that's built into it
when you buy it from the jewelry store
it will kind of soften the blow a little
bit when you take it to a pawn shop and
I say it that way because it is going to
be a blow
alright a pawn shop when they're buying
jewelry they're looking at a few things
they're looking at what type of metal
that's made out of or is it gold is it
silver as a platinum they're looking at
the purity of the metal you know if it's
gold is a 10 karat is a 14 karat is an
18 karat is a 22 karat the higher the
carat the more pure it is the more it's
worth per gram for how much it weighs
then once they know what type of metal
that they have they're looking at the
weight of the metal you know is this
ring three grams or is it eight grams
you know and the heavier the ring is and
the higher the purity the more gold
that's there the more they can pay you
for it and then the next thing they're
looking at is any stones involved if
they're colored stones you know like a
chocolate diamond or a black diamond or
a turquoise stone those things are going
to hurt you and I know I know I know
you're like oh my god I'm a black
diamond I spent so much for this they
told me it was so unique and everything
it's a scam and I'll explain in another
video but long story short they take
really bad stones and they turn them
black or chocolate colored and then all
of a sudden they have a new stone but
they start off as really dark yellow
stones that were not sellable before and
then also they are so now if you have
just natural stones and um you know
diamonds they're gonna look at the the
size of the stone they're gonna look at
the clarity they're gonna look at the
color they're gonna see how
symmetrically it's cut and then they're
going to use that stone to determine
okay if I have eight grams of 10-karat
gold they know how much that's worth and
if they have a two carat diamond that's
really good quality they know how much
that's worth and then they're going to
combine those numbers to come up and
figure out how much they might be able
to sell that ring for or meld it for and
them sell the stone for and then they're
going to make you an offer
that's roughly thirty or forty percent
of whatever that number is now if you're
selling it that offer might get much
higher might be fifty or sixty percent
maybe even a little bit higher in some
cases but you know keep in mind there
their business like anyone else they're
in this to make money and it's not to
rip you off but just like the jewelry
store who bought the ring for twenty
four hundred dollars start with and then
sold it to you for $7,900 they're the
ones that really ripped you off to begin
with a pawn shops just working with what
the ring with the you know the $2,400
new costs they're not working with the
seventy nine hundred dollar cost and you
might think like oh my god I have this
appraised allah says it's worth ten
grand
you know why is a pawnshop only offering
me twelve hundred bucks for it
well because the appraisal is written to
protect the jewelry industry what the
praises do is they they're for insurance
companies to cover to make sure somebody
get a replacement ring if it's lost or
stolen but more importantly it's so it's
so
a jeweler can say like look i'll write
you this appraisal it says it's worth
ten grams i really think it's worth ten
grand but I'm gonna be the good guy I'm
gonna cut you a real deal on it I'm
gonna sell to you for $7,900
and it's just it's a phrasal is nothing
more than a sales tool more often than
not it's not like an actual reflection
of how much this thing is really worth
it's just it's another gimmick they use
to make you think that this ring is
worth so much more money than what it
what they actually
paid for it it's it's just protect their
industry appraisals are just for
insurance purposes they don't really
have anything do with how much a ring is
actually worth so if you're trying to
determine how much a pawnshop is going
to give you for a ring I'm going to tell
you the best thing you can do is take
the little soapy water clean around the
stones maybe underneath the band you
know get a lotion or dead skin off it or
a grime or anything and make it look
shiny and new and then take it to at
least three or four different pawn shops
and get offers because at the end of the
day everyone is going to have a
different opinion of how much they can
sell that diamond for and so you may
have one pawnshop that thinks like oh I
can only sell that diamond for five
hundred and you might have another
pawnshop to think so I can sell that
diamond for twenty five hundred and your
offers are going to be way different so
when you're when you're trying to get
the most money possible for ring a
diamond ring at pawn shop don't go to
just one pawn shop go to a bunch of them
and when you're at a bunch of them you
know you can get different offers and
try and get them on paper and get all
those offers the same day and before you
leave make them commit to like hey if I
come back in two hours just this press
stand and tell them what you're doing
tell them you're taking around you're
shopping around and some pawn shops may
say no it's it's right now or nothing
and if they say that then then just walk
out because really they should be able
to honor the price for a day right
there's nothing that's gonna change in a
day and they're just trying to push you
or pressure you because they think
you're you're hard up for money and you
know it's the best offer you're gonna
find now you know shop it around get get
a bunch of offers try and get my paper
and then take the best offer and that's
really the best way to figure out how
much a pawnshop will really offer you
for your ring and I know it's not
everyone wants me to say your rings
worth $50 buddy and think that like oh
this is the best YouTube video ever
walked but I can't because of how many
different rings there are out there I
can just give you my advice and explain
the logic
and I hope you got some value out of it
if you did give it a thumbs up if you
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they come out alright take it easy
love you guys bye