Category: pawnbrokers London

A Brief History of Pawnbrokers in London

The origin of pawnbroking can be traced back to thousands of years when pawn shops first turned up. And, lending cash against assets has been a practice in many ancient countries like China, Greece and Europe. While more and more people today prefer this convenient high street way to raise cash for a short period, trustworthy pawnbrokers London are working to make the pawnbroking process more secure, transparent and straightforward.

However, pawnbroking in Europe started to flourish during the Middle Ages. The practise of pawnbroking was introduced in England by Norman Conquest. While the first bank of England indeed established ‘pawnshops’ in 1695 with a specific interest rate, it helped the poor who had no legal protection at that time. Moreover, the Lombardy region of northern Italy was another seedbed of pawnbroking, and gradually, the term ‘Lombard’ became synonymous with the term ‘pawn shop’.

Pawnbrokers Licence Law of 1785

The Pawnbrokers Act of 1785 licenced the pawnbrokers for £10 in London and £5 for the country that was indeed a staggering sum at that time. This ensured that London pawnbrokers were heavily regulated and abided by specific rules. However, the rate of interest was set at 0.5% per month, and the maximum loan term was confined to one year. As per the law, pawnbrokers could be fined twice the worth of an item for not returning it after the payment was made.

The Pawnbrokers Act of 1800

Lord Eldon introduced this act that became quite popular among pawnbrokers because it increased the interest rate up to 1.5%. The licence fee was also increased to £15. However, the legislation was revised three times, and a new act of 1872 replaced it finally. In fact, pawnbroking served as the only convenient means of obtaining a loan for the poor during this time.

Pawnbrokers Act, 1872

The Pawnbrokers Act of 1872 introduced many rules that are yet in force today. Individuals under 12years of age or drunk were denied a pawn loan. Licenced pawnbrokers London were required to engrave the word ‘pawnbroker’ above their shop’s doorway.

Pawnbroking became highly popular because of the industrial revolution, creating a new base of the working class. However, it continued to stay popular until after World War II.

The Process of Pawnbroking Today

Although pawnbrokers once earned itself a prejudiced reputation in the past, their image has significantly changed over the last twenty years or so. Indeed, the upsurge in the pawnbroking industry came during the credit boom in the 1980s. However, things for London pawnbrokers today are not much different from what they were in the Victorian period.

Indeed, all pawnbrokers in London are now heavily regulated and required to acquire a licence to trade from the Financial Conduct Authority. London is the early home of luxury watches and fine jewellery. And, the famous street such as Hatton Garden is the home to nearly more than 300 diamond and jewellery trading business.

Trustworthy pawnbrokers in Hatton Garden, like at The Luxury Hut provide discreet and transparent pawnbroking service and an instant asset-based loan against watches, jewellery, diamond and gold. Whether you are looking to pawn your luxury watch or get a loan against a diamond ring, get in touch with the reliable pawnbrokers Hatton Garden or your local trustworthy ‘pawnbrokers near me’ and receive an instant cash loan offer without any obligation and credit check.

Do Diamonds Appreciate or Depreciate in Value?

Diamonds Appreciate

Diamonds are considered to be celebratory gemstones, representing typically one’s prestige and wealth. However, over the years, diamond prices have fluctuated significantly. Whether you want to sell a diamond heirloom or are interested in purchasing a diamond asset, you may wish to know, ‘Do diamonds appreciate or depreciate?’ Although there is ideally no straightforward answer, the fact is that a diamond does have a resale value. Continue reading below as we cover whether diamonds increase or decrease in value with time and how can you obtain the best possible price when selling it to trustworthy pawnbrokers London.

Do Diamonds Increase in Value?

If you ever ask yourself the question ‘does a diamond appreciate?’, The simple answer is that unfortunately, diamonds do not usually appreciate over time. Although it depends on many factors like how and when you bought it, the fact is that most of the diamonds have depreciated over the last ten years or so.

There is indeed a common misconception that diamonds are rare and eventually, increase in value over time. Like cars or other luxury assets, a diamond’s value will dramatically drop once you step out of the jewellery shop. Why? While one of the factors is known to be the retail mark-up, many other aspects play a significant role in determining the resale market value of diamonds. Now:

For those who are wondering whether diamonds have resale value, the short answer is yes. Whether it is a family heirloom, a loose diamond or an engagement ring, all diamonds have a resale value. While diamonds are always desirable and coveted, there is indeed always a booming market for second hand diamond jewellery. Thus, if you want to raise instant cash in a hard-up situation, you can choose to sell your diamond jewellery to any trustworthy ‘pawnbrokers near me‘ or pawnbrokers London.

How to Get the Best Price when Selling your Diamond Jewellery?

Diamonds are undoubtedly one of the hardest elements in the world. However, a diamond can also get chipped and fractured. Whether it is a diamond necklace or a diamond engagement ring, make sure to keep the jewellery item in good condition without any significant dents and missing diamonds, thereby enabling you to secure the best price when selling it for cash.

However, while a diamond certificate is an official report of a diamond’s characteristics, it may allow potential diamond buyers or professional pawnbrokers in London to provide you with a higher price offer for your diamond jewellery. A diamond certificate includes vital details like the diamond’s cut, carat, colour, clarity, symmetry and fluorescence.

More significantly, if you want to obtain the best price for your diamond jewellery, it is always essential to choose a reliable diamond buyer to make the process smooth. With years of experience in dealing with all kinds of diamond jewellery items and comprehensive knowledge of changing market prices, The Luxury Hut pawnbrokers London are able to provide a competitive price offer and make the selling process quick as well as convenient. To begin the process:

  • Fill up the online form
  • Get your initial price quote
  • Send your item or book an appointment at our office in Hatton Garden,
  • London to visit in-person with your asset
  • We will make a final price offer
  • Accept it and get paid within minutes.

Why Should You Not Open a Watch Yourself?

Many people tend to open their luxury watches themselves usually for two reasons. One is, to change the quartz battery or assess any water damage, second, to check out the serial or model number of the watch. Regardless of any reason, you may have for opening a timepiece; the asset can be exposed to unnecessary damage and expensive repairs.

Thus, the popular question that many luxury watch owners often ask is ‘Should I open a watch myself?’ or ‘Will opening a watch myself depreciate its value?’

While watch experts do not recommend opening a luxury timepiece yourself, the straightforward answer to the above question is you should not open your watch yourself as it is likely to depreciate its value.

A luxury watch should be indeed only be operated on by a specialist watchmaker or professional pawnbrokers London. Why? This is because they possess the necessary experience, knowledge and more significantly, the right equipment to disassemble, reassemble as well as repair a watch.

OPENING A WATCH CAN LEAD TO SIGNIFICANT DAMAGES

The sturdy construction, expensive components and intricate complications enable a luxury watch to last for a lifetime. Indeed, a luxury watch requires proper care as well as regular servicing to let them retain its value as much as possible. Eventually, like many others, you can use your watch as collateral and take out a pawn loan from trustworthy pawnbrokers in London or ‘pawnbrokers near me’ during short-term financial needs. You are likely to obtain a higher amount of credit loan for a luxury watch in good working condition.

However, while luxury timepieces attain outstanding durability and reliability through their brilliant craftsmanship, the high-quality materials used in designing their case contribute a lot to their sustainability. The watch cases are durably constructed to prevent the movement from any intervention of dust, moisture and other unnecessary particles.

Most luxury watchmakers purposefully design their watchcases in such a way that only a skilled hand with the specialised tool can open it, thereby preventing unauthorised openings. However, once you open your watch, it needs to be appropriately sealed again, and only a watch professional with the necessary skills and tools can do it correctly.

Otherwise, your timepiece will get exposed to moisture and dust. Keep in mind that a single drop of water in the movement can cause significant damages. Moreover, you are likely to break your watch’s warranty once you open it. Many watch cases come with moisture sealing stoppers that are specific to every watch model. These gaskets need replacement every time you open the watch.

However, while opening and closing a case, you may even dent or scratch the bezel, case, crystal or crown. All these aspects can significantly influence your watch’s actual value. If you opt for a pawn loan using this watch as collateral, your trusted local ‘pawnbrokers near me’ or professional pawnbrokers London may take into consideration all these factors before determining the final credit loan amount they are willing to lend against your asset.

WHY SHOULD A WATCH PROFESSIONAL ONLY OPEN A WATCH?

Professional watchmakers, watch dealers and experienced pawnbrokers in London or any other big city have the requisite experience, skills as well as proper tools to repair, disassemble and reassemble any luxury watches. They meticulously examine all essential aspects of a watch like its bracelet, crystal and movement while servicing. A luxury watch requires servicing every five to ten years to ensure optimal performance and accuracy for many years to come.

The watch professional will disassemble the movement, inspect every component for wear and tear and also, replace the old parts with original components (if necessary). Each component is cleaned ultrasonically, and the movement is greased to reduce friction and damage.

BEST WAYS TO MAINTAIN THE VALUE OF YOUR WATCH

Here are some quick tips for retaining and also, to appreciate your watch’s value:

  • Store the watch securely when you are not wearing it
  • Have your watch serviced every five to ten years and keep its service receipts
  • Keep the original box and papers of your watch in good condition as it will verify your asset’s authenticity.

For those who are wondering ‘what is the value of my pre-owned watch?’ Get in touch with your trustworthy local ‘pawnbrokers near me’ or pawnbrokers London like at The Luxury Hut. Professional pawnbrokers have years of experience and rich knowledge of the second hand luxury watch industry. To get started, fill up their online form and get a fair price quote for your watch.

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  • Suite 45, 88-90 Hatton Garden, London, EC1N 8PN
  • 0207 242 5411
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