Borrowing against heirloom jewellery is a quick way to secure funds. It doesn’t require you to permanently part with your precious jewellery.
What qualifies as heirloom jewellery?
Although there is no official definition, heirloom jewellery is typically old, valuable and hand-crafted from gold, silver or platinum. It may be set with precious gemstones.
An heirloom piece may carry significant sentimental value, have strong ties to a family’s history and have been kept in the family through multiple generations.
In some cases, the history of an item of jewellery can affect its potential resale value. This applies if, for example, it was owned by an especially famous person or is directly associated with a time or events of historical interest.
Where jewellery is sold direct to dealers, its value will likely be determined based only on the value of its materials (the weight of the precious metal and the carat of any precious gems).
Craftsmanship and history, or provenance, will be more relevant if an item is auctioned or marketed directly to an interested audience.
How to borrow against heirloom jewellery with LoanAgainst
LoanAgainst offers fast, discreet loans against personal assets, including fine pieces of jewellery.
We offer an online loan application process. Simply tell us as much as you can about the jewellery and we’ll offer an instant, initial loan offer. If you’d like to proceed, we’ll arrange to meet, appraise the jewellery and complete a loan agreement.
The funds are then transferred to your account, typically within 24 hours of application.
The jewellery – be it one or more rings, brooches, necklaces or earrings – is retained as collateral for the loan term. During this time, it is stored in a safe on secure premises with strict access control.
Once the loan is settled in full, the jewellery is returned to you, in the same condition you left it. You can then keep it for passing on to a future generation or choose to sell it at a later time.
Some disadvantages of trying to sell heirloom jewellery
Jewellery is not a highly liquid asset. Fair value is difficult to determine. Estimates by jewellers vary widely and current market demand is volatile.
Online marketplaces and auction houses are mushrooming, and the second-hand jewellery market is saturated.
Getting a reasonable price and finding interested buyers takes time, a commodity you don’t have when you need cash fast.
If you do get a buyer at the right price, you may experience “inheritor’s guilt”. You’re losing an asset that could be of financial and sentimental value to you – and future generations – in later life.
Usually, pawning an item of heirloom jewellery isn’t a solution. Pawnbrokers operating in the “sell your gold and diamonds” niche tend to value jewellery based on the weight of precious metals and stones.
They don’t take into account the craftsmanship typical of heirloom jewellery. That, together with the history and provenance of the piece, can add significant value.
What to consider before borrowing against heirloom jewellery
To ensure you retain long-term possession of your heirloom jewellery, you must have the ability to pay back the funds in accordance with the agreed terms.
Failure to repay the loan can result in the jewellery being sold and the proceeds used to cover the losses.
You must be prepared to part with the jewellery for a short time. While in our possession, the jewellery is stored in a secure, access-controlled facility.
If you’re happy with that arrangement, borrowing against heirloom jewellery, rather than selling it, is the answer to your cash-flow problems.
Advantages over other finance options
There are many benefits to borrowing against heirloom jewellery, including:
- fair, market-related asset-based loans
- quick loan approvals
- transparent fee structure
- negotiated repayment terms
- National Credit Act-approved interest rates
- no credit checks or affordability assessments.
LoanAgainst specialises in providing short-term asset-based loans to individuals and businesses. If you’re interested in borrowing against heirloom jewellery or another personal asset of value, call us on 064 976 7106 for more information or simply complete and submit our online loan application.
