The ongoing rise of alternative lending has seen those in need of cash for business investment leverage diamond rings worth hundreds of thousands of pounds.
Luxury asset lender Borro, which provides loans of up to £2m on goods such as cars, gold or antiques, has noticed a surge in the amount of money being borrowed using diamond rings.
Since 2008, some £20m has been lent against them at an average value of £15,000. However, highly-valued diamond rings have commanded big values, with five worth £100,000 or more.
The most valuable was a diamond emerald cut nine carat ring which Borro valued at £280,000. A single stone ten carat ring fetched £200,000 and a six carat diamond engagement ring came in at £150,000.
Borro’s CEO, Paul Aitken, said that many have jewellery which is sitting in a box tucked away, and do not realise its true value.
Commenting on those considering diamonds or diamond rings as an investment, Borro director of valuations Samantha Lilley said: “People must always remember to view the sale prior to bidding, so they will know if the item is in good condition or not.
“Some rings will come with gemological certificates, with some more accurate than others – with a reputable salesroom offering a certificate for you to view.”
Read more on alternative finance:
- The finance providers breathing down the necks of banks
- What does alternative finance mean for businesses?
- The future of business funding
Borrow revealed that the the other principle reasons for borrowing against diamond rings include covering the legal costs associate with divorce settlements, paying tuition fees and funding tax bills.
Aitken added: “Anyone looking for finance could easily be reaping the benefits from the value found in assets like these [diamond rings].”
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