• Top reason for borrowing against wedding rocks includes to cover divorce settlement costs
• £280,000 loan issued on a nine carat emerald cut diamond ring
• Other reasons for loans against diamond rings include paying tuition fees, tax bills and for SME investment
• Borro sees average loan value of rings is £15,000
Diamonds are a borrowers best friend for Brits seeking cash, according to Borro. The luxury asset lender reveals it has lent clients a total of £20 million against diamond rings since launch in 2008. With 42 per cent of all marriages ending in divorce* it's unsurprising that a top reason for borrowing against diamond rings is the need for extra cash to cover the legal costs that come hand-in-hand with a divorce settlement. Other reasons for these loans include paying for tuition fees, paying tax bills, and for SME investment.
Borro has seen an enchanting selection of rings come through its doors, and while the average loan value against this asset class is £15,000, it has lent against some hugely valuable and unusual stones, including a diamond emerald cut nine carat ring which achieved a loan value of £280,000.
Examples of the rings Borro has lent against
Paul Aitken, founder and CEO of Borro, commented:
"Many people have beautiful jewels and gems – often gifted or inherited – simply sitting in a jewellery box or tucked away in a dressing table, without realising their true value. Anyone looking for finance could easily be reaping the benefits from the value found in assets like these. Borro provides quick and easy access to liquidity against assets, without customers having to sacrifice pieces and heirlooms that they hold dear. What's more, we have also lent £350,000 on Asian gold in the UK. In fact, the majority of gold we lend against is Asian wedding gold which has been passed down the family at the time of matrimony and is used to temporarily access finance."
For those looking at diamonds or diamond rings as an investment – or for popping the question! – Borro's director of valuations, Samantha Lilley, added her views on buying at auction:
"Auction houses can be really exciting and people will be sucked into the buzz of the saleroom. However, 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 gemmological certificates, with some more accurate than others – with a reputable saleroom offering a certificate for you to view. The golden rule is always have a ceiling price and stick to it! Many get carried away when bidding and forget to add the commission charges, on top of the hammer price – so always ask for these charges beforehand, as they vary from saleroom to saleroom."
Lilley added: "In terms of price, auction estimates are closer to the open market worth of the item than shops, therefore the only premium people pay is the auctioneer's commission. Better bang for your buck, but as a result, the buyer has to wait days for the sale. Jewellers on the other hand will charge a premium for their stock, and the mark up can often be five times the open market worth."
Since launch in 2008, Borro has issued over £100 million of personal asset loans to individuals and business owners, often against a climate of lower lending from traditional sources such as banks. At Borro loans of up to £2,000,000 can be offered against assets including fine art, antiques, prestige cars, luxury watches, diamond jewellery, gold, fine wine, and other high value assets.