We all have been in a situation when a beautiful piece of diamond jewelry is not needed anymore or just doesn't fit our taste. But there is always a solution — you can sell your diamond. The great news is all diamond jewelry, be it a necklace, earrings, or a ring, has its own resale value.
To sell your diamond the right way, you need to know its resale value and understand why it is always less than its initial price. For this, we will clarify the approaches to stone value estimation and give you some great advice on how to find the resale value of diamonds and also buyer for.
The only true answer here, it depends. Diamonds have one value when they are sold in a retail shop and an absolutely different one when you are trying to sell them. To get an idea of why gemstones differ in price, consider these 3 values:
All these values are equally important in the diamond evaluation. And by examining the details about the gemstone’s supply chain, you will understand why the purchase value is always higher than its wholesale price and cannot serve as an indicator for a diamond’s price. In its turn, the appraisal value is perfect proof of the stone’s quality and helps to identify how much your diamond is worth based on its key characteristics. Finally, the resale value enables you to set a price for the jewelry and successfully sell it.
The bitter truth is that the actual market value differs from the purchase value of any jewelry with diamonds. This happens because of retail markups. They can reach from 100% to 200%, depending on the store that sold you diamonds. Why are they so high? Let’s have a closer look at the gemstone's supply chain.
Retailers purchase diamonds from wholesalers. The latter buy them from their manufacturers. Everyone wants to get money from the deal, increasing the purchase price higher and higher. Besides, retailers add their part to the final cost, as they need to cover utilities, space rent, and wages.
In the end, the piece of jewelry that is presented in the store costs double the price. The only way to omit this rule is to purchase diamonds online. As a rule, the markup there is 18-20%, which is far better and saves you some money.
To assess diamonds, industry professionals give it an appraisal value. It describes the worth of the entire piece of diamond jewelry, including the diamond and the setting. Such appraisals usually undergo inflation at over 100% of the retail price and do not showcase the true diamond value.
People who receive their first appraisal value consider getting a real deal, but only retail shops benefit from it. Also, when jewelers close the desired deal, insurance companies get higher premiums. That’s why the appraisal value may misguide those who rely on the resale value of their gemstones, as the offered price will be nowhere near the appraisal. It rather serves insurance and quality proof purposes.
When you plan to find a buyer for your jewelry with diamonds, expect a huge difference between the initial cost and the resale price. Diamonds resell for 25% to 50% of their purchase value. So if you purchased your diamond jewelry for $1500, the resale value will be somewhere near $855-900, depending on the buyer’s preferences. That’s why only rare and big diamonds are good for investments. For other stones, you need to cut down expectations in terms of resale value.
Pin Tips: All diamond jewelry, be it a necklace, a pair of earrings, or an engagement ring, has a resale value.
You will be overwhelmed but the minute you leave the jewelry shop with a perfect diamond piece, it becomes half the price than it was literally 5 minutes ago. You say unfair? The diamond marketplace is tough but there is always a great demand for gemstones.
Factors that impact the diamonds resale value are:
Due to retail markup, the resale price is at least twice cheaper than the initial value in the jewelry shop. Besides, diamonds do not get more value with time, so never hope to get a fortune when selling one. However, despite the above, we will share all the information needed for you to receive good money on reselling your diamond jewelry.
To make things easier, we prepared a diamond resale value chart, where you can compare the difference among different diamonds and their approximate value on resale.
| Retail Price | Online Price | Peer-to-peer | Gemstone Buyer | Gemstone Buyer |
| $12,500 | $9,500 | $6,700 | $5,500 | $4,850 |
| Carat | Color | Cut | Clarity | Lab |
| 1.0 | F | Round | VS2 | Gia |
| Retail Price | Online Price | Peer-to-peer | Gemstone Buyer | Gemstone Buyer |
| $4,100 | $3,150 | $2,250 | $1,830 | $1,610 |
| Carat | Color | Cut | Clarity | Lab |
| 0,9 | G | Princess | VS2 | Gia |
| Retail Price | Online Price | Peer-to-peer | Gemstone Buyer | Gemstone Buyer |
| $4,100 | $3,150 | $2,250 | $1,830 | $1,610 |
| Carat | Color | Cut | Clarity | Lab |
| 0,5 | F | Emerald | VS2 | Gia |
While we already know that diamonds have different market values, a decent price for each particular stone is set individually. Here are these specific factors for you to consider:
The above factors are equally important. They will help you know how much your gemstone is worth and let you understand whether you can ask for a higher price. We will tell you why the grading certificate is crucial when selling your stone, and what places are best to find a buyer and get the best resale value.
Diamond 4Cs
First and foremost, know the basics. By estimating the stone's cut, its clarity, weight in carat, and color, you will get a clear picture of the amount of money the buyer will be ready to pay you. The higher the grade, the more exclusive the diamond. Besides, bigger diamonds with higher weight always cost more, both in a shop or when they are resold. When you know all of the stone's 4Cs, you can compare the prices, and calculate their resale value by multiplying the retail cost by 20-40% to get your approximate estimate.
You should be probably asking yourself “How do I evaluate the quality of my diamond?” You will easily find the answer in the grading certificate which is given upon purchase. It mentions all of the 4C's of diamonds to help a diamond specialist determine its quality. Grading certificate is the passport that validates 4C's are true.
In case there is no grading certificate, the stone should be sent to the grading laboratory (usually, it’s GIA). Industry professionals will assist with certifying the diamond there. The certificate shows the quality grades and serves as proof that the gemstone is of high quality and ready to be sold.
Read About: 5 Cs Of DiamondsTips: When defining the diamond value, consider 4Cs, market value, and the place from where you got the stone.
Also, a certified professional can appraise your diamond and state its value on the market. Although the document is of little help to raise the selling cost to its purchase value, it serves as an additional proof of the stone’s quality and allows you to ask for more money during the bargain. An appraisal is valuable when it comes to the whole piece of jewelry, and has a detailed overview of the stone's grades and a report on its final value.
When people come to the shop to purchase a delicate piece with diamonds, they do not pay its market value. It is usually a double price with a markup which might be slightly less in an online store and is around 20% add-on. It means that when you want to find a buyer for the diamond, you won’t get a great profit as different jewelers set their own markups that can reach 200%.
While you cannot change the way you purchased the stone, you can make a smart choice while selling it. There exist several options to consider:
In general, a wholesaler, knowing the actual price for gemstones, will always offer less than a retailer. However, retail buyers don’t always agree to buy and pay the price you expect. Those retailers who are ready to buy your diamond offer a ridiculously small price. You will need some time and patience to find the right buyer to finally sell your diamond.
To avoid the headache, consider diamond selling services, like Diamond Registry. We will connect you with the direct buyers and ensure you leave with the highest resale price possible.
Tips: Diamonds, unless they are exceptional and rare, do not grow in value and are unlikely to bring any profit.
Remember, all pieces of jewelry with a diamond always have resale value, so having all the knowledge and required documents, you will succeed in finding a proper buyer. To define the actual value, know the basic parameters of your stone, and ensure to have the relevant proof of top-notch quality confirmed by appraisals.
You have several places where you can search for buyers, but to save your time, Diamond Registry is ready to take the hassle of selling your diamond and connect you with buyers that offer a great market deal. Get in touch and we will assist with any related questions and make the final sale happen.
