Each of us has experienced a situation where a stunning piece of diamond jewelry is no longer required or simply does not suit our tastes. You can always sell your diamond as a solution, though. The good news is that each piece of diamond jewelry, whether a necklace, pair of earrings, or ring, has a marketable worth.
To sell it properly, you must know your diamond’s resale value and comprehend why it is always less than the purchase price. To do this, we will explain the methods for estimating stone worth and provide some excellent tips on determining the diamonds’ resale value and potential buyers.
What’s the Price of My Diamond?
The only accurate response is, “It depends.” When diamonds are bought and sold in a retail setting, their worth is one thing; it is quite another when you try to sell diamond. Consider these 3 values to understand why gemstone prices vary:
- Purchase Value: This term refers to the cost of purchasing jewelry from a retailer.
- The setting and the diamond itself determine a jewelry item’s appraisal value.
- The diamond’s current market value at the time you decide to resell it is its resale value.
- The diamond evaluation gives equal weight to each of these values.
Additionally, you will be able to comprehend why the purchase price is always higher than the wholesale price and cannot be used as a gauge for a diamond’s price by looking at the specifics of the supply chain for the gemstone. In turn, the appraisal value is perfect evidence of the stone’s quality and aids in determining the value of your diamond based on its salient features. The jewelry’s resale worth also allows you to decide on a price and execute a successful transaction.
The unpalatable fact is that any diamond-studded jewelry has a different market value than when it was first purchased. Retail markups are to blame for this. Depending on the retailer from whom you purchased your diamonds, they can range from 100% to 200%. How come they are so high?
Retailers buy diamonds from wholesalers. They purchase them from their producers. Due to everyone’s desire to profit from the transaction, the purchase price keeps going up. Retailers also contribute to the ultimate price since they must pay for utilities, rent for their premises, and employee salaries.
The jewelry that is displayed in the store ultimately costs twice as much. Diamond purchases made online are the only way to get around this rule. There, the markup is often 18–20%, which is much better and less expensive.
Industry experts assign diamonds an evaluation value to determine their value. The value of the diamond jewelry, including the diamond and the setting, is described. Such evaluations typically have inflation applied at a rate of more than 100% of the retail price and do not reflect the genuine value of the diamond.
Only retail stores profit from receiving their first appraisal value, which people who obtain it believe to be a true deal. In addition, insurance firms receive higher rates when jewelers complete the intended transaction.Those who depend on the resale of value of their diamonds could be mislead by the value of an appraisal since the quoted price will be significantly less than the appraisal. Instead, it is used for insurance and quality assurance.
Value at Resale
When looking for a buyer for your diamond-studded jewelry, be prepared for a significant price gap between the original purchase price and the final selling price. Diamonds resell for between 25% and 50% of what they cost to buy. Because of this, only large, unusual diamonds make attractive investments. You must lower your expectations about other stones’ resale value.
Value of Resale Diamonds: Final Word
You will be shocked, but as soon as you leave the jewelry store with a flawless diamond piece, the price drops to half what was simply five minutes earlier. You call it unfair? Although the demand for gemstones is always high, the diamond market is competitive.
The following variables affect the diamonds’ resale value:
- Fundamentals and quality grade your gemstones according to the market worth where you intend to sell them.
- The resale price is at least two times less expensive than the original value in the jewelry store because of retail markup.
- Additionally, diamonds do not appreciate over time, so never expect to make a killing when selling one.