Thinking about selling? It is important to understand several simple realities about today’s diamond resale market. I’ve provided a couple important details you should consider when contemplating the sale of your diamond ring or diamond jewelry.
The gemologists at The Diamond Valet keep a close eye on how the supply and demand of diamonds across the global markets ultimately affects the price offered on a particular diamond. In the last few years, despite a seemingly improving market, diamond supply is still very high, and retail buying seems to continue to stagnate along, with very little aggressive buying. Dealer and wholesale discounts have widened a bit more into January and February, as most dealers just have an abundance of supply in the .50ct. to 3.00ct. weight range. Even fine quality GIA certified diamonds in the VVS clarity and D / E color ranges have continued to stagnate along, with lower demand.
With this reality, it is critical for you to understand a couple of important details when you consider the sale of your ring.
1) Internet dealers will traditionally pay more than local dealers. However, on a sight unseen evaluation, many internet dealers create value ranges they never intend to honor. If a well cut 1.00ct. GIA G VS2 is being offered on the diamond exchange at about $4,000 cash, no one is paying you more for your diamond. No one, nada, not gonna happen. At The Diamond Valet, we provide honest price quotations and we never over-promise to our clients.
2) Appraisal values are meaningless when it comes to the sale of your diamond back into the trade. Sure, your retail jeweler created an appraisal value of $14,500 on your $7,500 purchase. But, this has absolutely ZERO effect on what the cash market value is for your diamond. So, while appraisals are helpful for our gemologists to begin understanding what you have, they should not affect your decision on how much you might sell for.
3) Your sentimental attachment to the ring, or the price you paid for the ring to a retailer has no effect on the cash value of your diamond. Remember, retailers have enormous overhead, and there is a reason they mark a $2,500 wholesale cost to a $7,500 retail value – they have bills to pay!
4) Internet consignment houses, such as the web sites where you list your ring and wait for buyers, are generally littered with dealers making lowball offers on your rings. I hear more stories about how an item did not sell, than I do about success stories. Not to mention the consignment fees of 15-25%. It is pretty much the same story with sites like eBay and craigslist.
At The Diamond Valet, we seek to provide an informed evaluation to our clients, so that you can make a wise decision about how to sell your diamond, and the right dealer to use for an outstanding experience.
As a GIA Diamond Graduate gemologist, I live and breathe the diamond market and I am always happy to ‘talk rocks’ with my clients.