We’ve all been there at one point; left with a piece of wonderful diamond ring that we don’t want anymore. So, normally, one would be looking to sell it. But, things aren’t that simple. Selling diamond jewelry will always carry the risk of getting ripped off, and generally being confused by all the resale rules, percentages, and value estimates. Understandably, everybody wants to get the highest value and price for their jewelry, but few actually get that. So, what’s the deal, and do diamonds have resale value? Let’s find out in the following paragraphs!
First Of All, How Are Diamonds Valued?
Before we even get into the resale value, you should know a little something about hs diamonds are valued in the first place. 4 main criteria help determine the value of a diamond;
- The clarity of the stone – clarity refers to the flaws and impurities in the stone. They are known as inclusions and they are an essential part of the price evaluation process.
- The color of the stone – when determining the value of the stone, one needs to consider the color. For example, the more colorless, or clearer the stone, the higher the value. Some diamonds tend to have yellow hues, which make them value or cost less.
- The karat of the stone – carat/karat is a term used to describe the weight of a stone. So, the higher the karat, the heavier and more valuable the stone. One karat can be equal to the measurement of 0.2 grams.
- The cut of the stone – the cut, or the shape of a diamond’s facets is incredibly important when estimating the value or the price of the stone. The cut of the diamond determines its brilliance and reflectivity. So, the better the shine and bling, and the more expensive the stone becomes.
And, How Are Diamonds Revalued?
Now that we know how diamonds are valued, let’s see how they are being revalued. First of all, the potential buyers of your diamonds or diamond jewelry will tell you that no two diamonds are the same. Therefore, the resale price cannot be exact, and it varies from stone to stone. However, some factors are essential when it comes to every diamond and the establishment of the resale price; the origin of the stone, the initial worth of the diamond, and the further choices on how and where you want to sell it. Let’s take a closer look at these factors;
The Origin Of The Diamond
The resale price of a diamond can increase or decrease in regard to its origin. If the diamond was bought from a jewelry store, chances are you’ll never get even close to what it was originally paid for. The reason for that lies in the market value for the diamond and the fact that you’re not only paying for the stone but also the markup added to the price by the retail store that is offering the diamond in the first place.
So, even if the diamond is in exceptional shape, it will be worth significantly less than the amount one paid for it at retail. Some jewelry stores are willing to revalue and buy the diamonds, but they offer not even half of the original price. The highest you can expect to get is up to 40% of the diamond’s original price.
The Initial Worth Of The Diamond
The initial worth of the diamond is evaluated by taking into consideration the stone color, cut quality, clarity, and karats. When buying a diamond, or diamond jewelry, you’ll receive a GIA or AGS certificate, where the quality of the stone is described. The certificate shows that an independent laboratory has evaluated the diamond’s quality. This certificate will be essential in determining the resale price of a diamond. But, again, even with the highest quality diamond, you can expect to get up to 40% of the diamond’s original value, mostly due to the incredibly high markups.
Selling Or Exchanging For Another Stone
Whether you’re selling or wanting to exchange your diamond for another jewelry item can determine the diamond’s resale value as well. For example, if you want to get another stone in exchange for your diamond at a jewelry store, it is more likely to be valued higher, compared to selling the stone for cash. But even then, you can expect to either get a cheaper stone in exchange or to get significantly less money in cash, especially with retail jewelers.
So, Does The Value Of A Diamond Change Over Time?
The value of diamonds change over time, but not as one would expect. First of all, the value and the prices never stay the same; the price oscillates frequently and often follows the global economy in that sense. Sure, the prices can increase one year, and that would be a great year for anyone trying to sell their diamond jewelry. However, more than often the prices decrease, and keep on doing so for years.
If we take a look at the diamond value per one karat in the 1960s, we’ll see that it was priced at $2,700. Nowadays, the prices for a 1-karat diamond can go up to $30,925, which surely results in a better investment return and higher resale value. However, there is also the issue of inflation, which has become more than 700% in the period between the 1960s and 2010s.
So, after all, the true value and resale value of a diamond are still exceptionally small. And, once you add the retail markup to the equation, as well as the difficulty of selling a diamond in the first place, one can conclude that diamonds are seldom appreciated for their true value.
If I Still Want To Sell My Diamonds, Where Can I Do That?
- Jewelry stores – jewelry stores are the first thing that comes to mind when selling jewelry. Even though this sale may be fast and convenient, bear in mind that you won’t be getting much money from these stores. Remember the markup and the market price from the previous paragraphs? Well, that’s the deal; because of the markup, you can never get the full resale value of a diamond. Not to mention, there isn’t really any reason for a jewelry store to buy diamonds from you, when they can get them from numerous other wholesalers, for less money and better payment terms.
- Online – we believe that selling jewelry online is the best way to actually get some resale value for your diamonds. By selling online, you’re less likely to experience high losses, and you can get better offers. Online retailers and buyers also offer better return window and lifetime policies. You can also feel safer as a seller since you can expect to have options to retain full value and mitigate transaction costs.
- Direct customers – you can sell your diamond jewelry online, but instead of online retailers, you can do it directly to the customers. We don’t recommend you selling the jewelry on Craigslist, for example, because it does carry certain risks. However, peer to peer selling sites, like eBay, can be useful, but you can’t expect to be paid the same price for the jewelry that you paid yourself.
Note: We don’t recommend you sell your diamonds or diamond jewelry at pawnshops. The reason for this is that at pawnshops, the selling prices are below the market, so the buying prices may be even lower. So, you will probably get significantly less for your diamonds than you would get at a jewelry store or online. For example, the majority of the pawnshops will pay up to 60% of what the diamond’s worth, but in some cases, the percentage can go even higher.
Tips On Selling Diamonds For Best Value
- Be realistic – everybody thinks that their diamond jewelry is worth a lot of money, but they quickly get disappointed when they see the actual resale value. So, before you even try selling your diamond, make sure to be realistic about the expectations, as well as about the actual condition of the diamond or the diamond jewelry item. Bear in mind that even flawless diamond stones can be paid a fraction of their true worth.
- Try to sell online – by selling your diamond online, you’ll get the best chance of getting paid properly. Of course, you can’t expect the get the whole investment back, but you will surely receive a higher amount than at any jewelry store or retailer.
- Avoid local jewelry stores – even though it may be appealing to go directly to a jewelry store and sell your diamond, we advise you not to do it. You’ll get 40% of the investment back, in best-case scenarios, and you will have a hard time convincing the jeweler to sell the diamond in the first place.
- Get ready to wait – selling pre-owned diamonds is hard. So, if you do decide to sell your stone, be ready to wait for some time before you find a worthy buyer, especially if you’re asking for more money than it is established on the resale market.
Unless you need the money, we don’t recommend you sell your diamonds or diamond jewelry. You will never get the full price back, and even if you do manage to return some of the investment, it will be a fraction of what you actually invested. If you do need the money, then the best thing would be to sell to online retailers or to sell privately, online. These are the best chances of getting any money back from the diamond.