Each and every diamond, from the center stone of an engagement ring to a set of diamond earrings, is worth something when it comes to resale. However, the resale value of a diamond is nearly always much less than the sum you or your fiancé spent when you or your fiancé purchased the diamond when it was brand new unless the diamond is very rare.
This may be due to a variety of factors such as the diamond’s retail markup (which might vary depending on where you acquired the diamond) or the difficulties in reselling a previously owned diamond.
Depending on how you choose to sell your diamond, the price you are given for your diamond might also vary significantly. Here in this article, we will provide the necessary procedure to sell your old diamonds for the most cash.
Breakdown Process of Selling Your Diamond( Such as Diamond Ring)
Selling your diamond ring or other jewelry will nearly always result in a loss of money for you. Various elements influence how to reduce the loss of selling your old diamonds. These are given below-
1. Identifying Where You Bought the Diamond Ring
Let us begin with the first component. When you acquire a diamond from a jewelry shop, you not only pay the diamond’s market value, but you also pay the markup that the retail store that is selling you the diamond has added to the price of the diamond.
This markup might vary depending on where you purchase the diamond. To understand why this is the case, we must first go through the supply chain for diamonds in more depth.
Obviously, retail jewelers do not mine, cut, and polish their own diamonds. Instead, they purchase diamonds from a distributor, who in turn purchases diamonds from a diamond factory. Each connection in the supply chain results in an extra margin being added to the price the jeweler pays for the stone.
Then there’s the markup that the store applies to the diamond. Because brick-and-mortar jewelry retailers must cover expenses such as rent, employee wages, and utilities, their markups on diamonds may be quite high.
In certain instances, diamonds sold by brick-and-mortar jewelers are marked up by 100 percent or more of their cost to the jeweler (this is called a keystone markup). In essence, you’re paying double what the jeweler paid the distributor for the diamond.
If you purchase online (for example, from Blue Nile or James Allen), you’ll pay a substantially lower markup – most of the time, approximately 18 percent.
This implies that you will never be able to resale a diamond that you have acquired from a jewelry retailer. Even if the retailer agrees to purchase it back from you at 100 percent of its current market value, there is a hefty markup on the replacement diamond that you will not be refunded.
2. Identifying the Worth of the Diamond
The second factor is finding the monetary value of the diamond. The value of a diamond is determined by characteristics such as the cut quality, color, clarity, and carat weight of the diamond. Other variables influence the value of a diamond as well, however, the four characteristics listed above (the “4 Cs”) are the most important.
The GIA or AGS (or, in some circumstances, another lab) certificate that comes with the diamond will be examined by a knowledgeable buyer such as a jewelry shop when you sell a diamond to them. This certificate represents an independent laboratory’s assessment of the diamond’s overall quality.
As a general rule, jewelry retailers and other potential purchasers will be willing to pay more for a high-quality diamond than they would for a low-quality diamond. Even a diamond with an excellent rating, on the other hand, will be worth less than the sum you paid for it at the time of purchase.
3. Places to Sell Your Diamond
Here are the places where you can sell your old diamonds-
Consider the following scenario: you stroll into a jewelry shop that is comparable to the one where you purchased the diamond. That diamond was most likely on consignment when they paid 100 for it at the time of the initial transaction (ie, they borrowed it from a wholesaler, so it cost them nothing).
This suggests that the genuine cost of the diamond was substantially less than the 100 dollars they paid for it on paper when they bought it.
In order for the business to truly make an investment in a diamond rather than just borrowing one, it will have to justify the purchase by purchasing it at a very low price. Furthermore, in this industry, the ties that exist between suppliers and customers are quite significant.
If a jewelry business chooses to utilize its money to purchase a diamond from you rather than utilizing it as a chance to build a connection with a supplier, they must explain their choice by purchasing your diamond at a low price.
Furthermore, virtually anyone in the business who has dealt with a private seller understands that this is a fantastic opportunity to purchase a product at a significant discount to the market price.
It has come across an instance in which a jeweler would be obligated to purchase a diamond at market value when he could get an identical diamond at the same price from any one of hundreds of wholesalers (with better payment terms).
It will be much worse if you attempt to sell it to a pawn shop since their selling prices are already anticipated to be substantially below the market, and their expenses must be very low in order to justify their cheap pricing.
Here, the best place to sell your old diamonds for cash is online. Online platforms provide more facilities and offer a better return upon selling which is more than the traditional platform. If you are trading your old diamonds at a certified and trusted online platform, then you will get more cash other beneficial facilities