You own a lovely diamond ring, be it a wedding, engagement, or inherited gem. While you love your diamond, you also know you have a valuable gem on your hands and you need funds for an emergency or to pay for a recent expense.

You don't want to pawn or sell your diamond ring but it's one of the main assets you have that you can get a decent amount of money for as collateral for a loan. You can get a loan on your diamond through a diamond brokerage company. Here are tips you should follow so you achieve a loan that will give you the funds you need without putting you at a large financial setback.

Know your diamond's worth

Like all precious metals and stones, the worth of your diamond ring is dependent upon current supply and demand of the gem as well as the condition and quality of your diamond. If you have a classic or antique ring from a valuable maker, the value of your ring may be even higher.

Before you visit a diamond broker to get a loan on your diamond, know what the ring is worth. This way, you can negotiate a fair loan based on the actual value of your jewelry rather than your perceived or sentimental value of the stone.

Know how much money you need

When you get a loan on a diamond ring, you'll have to pay the loan back in installments over time. This loan will vary in length depending on how large your loan is, your credit history, and other factors. Failure to pay back the loan will lead to losing your ring, which you don't want.

You want to know exactly how much money you need prior to getting a loan and not ask for any more funds than you can realistically pay back over time. You'll get to look over a loan contract with your diamond broker prior to signing up for a loan so you can see how realistically you'll be able to make monthly payments with interest.

Your diamond loan expert will take possession of your jewelry until you have paid your loan off in full. If you pay your loan off early or never miss a payment, you'll up your chances of being able to get another loan if you need one in the future. Your diamond can be worth a lot more than you think and allow you to get money you need.