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Post by scrooge on Jun 25, 2016 8:49:57 GMT
I'm interested to see that cars and jewellery are the most favoured security items in the recent poll. I'm still fairly new to P2P and am wary of lending against either asset type, as I really cannot judge whether re-sale values for either are anywhere near the valuation given. I was shocked yesterday, when idly watching a daytime TV auction programme to see a ring valued at just 20% of what it had been purchased for, just 2 years previously.
Can any fellow forum members guide how I can be sure valuations are not grossly overstated? This is one of the reasons I have yet to put any money into "Collateral", who I note specialise in jewellery.
Thanks.
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phil
Posts: 190
Likes: 165
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Post by phil on Jun 26, 2016 15:16:06 GMT
I'm interested to see that cars and jewellery are the most favoured security items in the recent poll. I'm still fairly new to P2P and am wary of lending against either asset type, as I really cannot judge whether re-sale values for either are anywhere near the valuation given. I was shocked yesterday, when idly watching a daytime TV auction programme to see a ring valued at just 20% of what it had been purchased for, just 2 years previously. Can any fellow forum members guide how I can be sure valuations are not grossly overstated? This is one of the reasons I have yet to put any money into "Collateral", who I note specialise in jewellery. Thanks. I think Collateral claim that their valuations are trade price not retail, they also seem to claim that should the borrower default then trader who valued the piece will pay at least the loan value which is still considerable less than the trade value. The only true value I can see in jewellry is the scrap value, any higher value surely depends on the personal taste and opinion of a purchaser. Personally I usually stick to property or occasionally classic cars because it's easy to verify with a couple of internet searches whether or not the valuation is reasonably accurate.
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archie
Posts: 1,866 
Likes: 1,861
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Post by archie on Jun 26, 2016 15:41:25 GMT
Bit more here on jewellery valuations :- link
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Post by Deleted on Jun 26, 2016 17:39:30 GMT
piece of gold jewelry, has three values, the spot price on the gold, the retail price and the wholesale price. Which one are you refering to?
Only when you understand that can you calc the LTV.
Often people use the retail, which is daft. Sometimes, like when the stuff is "gold scrap" they use spot price. Either way this is pawn, it ain't pretty.
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