When it comes to diamonds, the question is often asked: how much are diamonds worth, and how can you know where to buy and sell diamonds?
In addition, one of the questions that often arise regarding buying diamonds is: Where To Sell Diamonds For The Best Price?
The best response would be: While selling to a neighborhood jeweler or pawn shop may provide you with fast cash, brick-and-mortar jewelry purchasers often pay less than internet buyers. Therefore we advise looking for a trustworthy diamond buyer online.
Let’s look more clearly at the answer together from the beginning and explain what diamonds are, how to know their value and worth, and how to sell them for the most money.
Let’s dive right in!
Diamonds and Their Characteristics
The term “diamond” refers to a kind of gemstone.
Being made out of one crystallized mineral makes a gemstone distinct from a rock in this way. The amount of diamonds produced is decreasing as mines end up being closed for one reason or another.
The majority may be discovered in kimberlites, pipe-like structures brought about by tectonic and volcanic action.
Placer deposits are the second type of geological source for diamonds. The diamonds are readily worn out of the kimberlite host rock they are embedded in and are swept away by rivers and streams.
Now that we have explained what diamonds are and how they are formed, let’s see how to determine their value and price!
Related Read: Is Selling Diamonds Legal?
The first thing we would say is the following: The cost of diamonds is complex.
Numerous elements decide what their genuine worth is. That is what they frequently tell you, at least. Though it doesn’t have to be so difficult, it is true.
The tools you need to determine how much a diamond should cost and how much a diamond is worth are provided in this article since, as you are probably already aware, the two are not the same.
Value and price are not the same. You should be aware of that. So let’s clear out the differences!
Diamond With the Best Value for the Cheapest Amount
Let’s look at what plays a significant role when it comes to buying diamonds and the best ways to save money!
1. Substitute Weight Classes
Reducing the weight of a diamond is one of the most effective and straightforward methods of saving expenses. Let’s see what that means with a real example:
As a result, a good quality diamond weighing 1 carat will cost $6,000, whereas a diamond considering 0.90-0.95 carats will cost roughly $4,000! That is a discount of 33%!
2. Color of Diamond
The hue of a diamond describes how colorless it is. The best color, D, has the most excellent grade, while Z has the lowest.
The point of this is that you won’t be able to distinguish a D color diamond from an F color diamond or even a G color diamond, which is what many jewelers recommend.
And how much does a one-carat diamond save on color? We can say maybe around 15%.
3. Crystal Clarity
Inclusions within a diamond are referred to as its clarity since they are not flawless.
There are many different kinds of inclusions, including fractures and black spots. The grade informs us of the size and visibility of these impurities.
Our objective should be to obtain diamonds that have imperfections that are so small that they cannot be seen without a magnifying glass. This indicates that our target diamond clarity is SI1.
Additionally, there is a 50% discount compared to a flawless diamond.
So far, so good! Let’s move on to another.
4. Diamond Forms
So, if you don’t want to save on quality, color, and size, it might be enough to decide on a diamond shape that costs less. There you also get exceptional quality for less money.
Related Read: What Is The Cheapest Cut Of Diamond?
Where You Can Sell Your Diamond Jewelry
Now we have finally reached the question that interests us the most, namely: Where to sell diamonds for the best price? Let’s start!
Imagine you enter a jewelry shop of the same style as the one where you purchased the diamond.
They probably had that diamond on consignment when they initially paid 100 for it (i.e., they borrowed it from a wholesaler, so it cost them nothing). This indicates that the diamond cost far less than the 100 they claimed to have spent for it.
What happens next?
They will purchase your diamond at a reduced price. The business will have to explain it by buying at a meager price to invest in a diamond and not just borrow one.
In this industry, connections between suppliers and customers are very crucial.
A jewelry business must purchase your diamond at a discount to justify using its money rather than utilizing the chance to strengthen its connection with a supplier.
Additionally, virtually everyone in the industry who encounters a private seller knows this is a fantastic opportunity to buy far below the market price. In general, it’s pretty improbable.
There is simply no reason why a jeweler would be forced to purchase your diamond at the market price when he could buy an identical diamond at the same price from any one of hundreds of wholesalers; Unless the diamond being offered is extremely rare for whatever reason (a situation I have yet to encounter with better payment terms).
Now you must be wondering what the best places to sell diamonds are? Let’s take a look!
It will hurt you considerably more if you try to take it to a pawn shop because their selling prices are already anticipated to be well below the market, and their costs must also be meager to justify their low prices.
Take a look at the second option!
You may always attempt to contact customers directly. However, Craigslist entails hazards of its own.
You may attempt to sell it on different sites such as eBay or other peer-to-peer marketplaces, but no customer will be compelled to pay you the same price you spent when they could just go to a store and get the identical item, which will come with warranties, packing, etc.
We just conducted a covert evaluation of the leading internet diamond selling choices. Here is our example:
For other reasons (creating movies and keeping our evaluations up to date), we bought a diamond ring from Tiffany & Co. We took this as a chance to learn more about the company’s other side.
These are the outcomes:
The diamond in the ring we used was 0.53 carats and was set in a traditional Tiffany solitaire. Let’s say we paid $4,500 for it when we first bought it. Naturally, we anticipated suffering a significant financial loss from the deal.
How much have you lost over time? That was the real question…
What’s the truth about their diamonds? Unfortunately, Tiffany diamonds are absurdly pricey and offer very little value. That explains why there was such a significant discrepancy between the price we bought and the price we could sell it for.
You must be aware that a specific brand, company, or name sells diamonds at higher prices even though their value does not correspond to that. Therefore, sometimes it’s better to buy your diamond somewhere else.
Diamond jewelry retailers might choose between selling to the general public or the jewelry business.
So, according to many blogs, selecting a buyer frequently depends on your ability to close the purchase fast, how much you trust the buyer, or how well you handle negotiation and marketing.
What Is the “Market Price” of a Diamond?
Although we’ve used this phrase a few times in this article, there isn’t a clear description of what it implies.
Additionally, there are “business pricing” (a lower price negotiated when several diamonds are purchased) and “call prices” (the amount a store will pay when they “call” a dealer with a specific request to sell to a buyer who is ready to buy this particular item).
In addition, there are “business prices” and “call pricing” (the price a retailer will pay a seller when they “call” them with a specific request to sell to a buyer who is prepared to buy this particular item) and (a lower price negotiated when many diamonds are purchased together).
Various Market Risks and Prices
So, you can see that a diamond has a wide range of “market pricing.”
The lowest of them is, of course, the “cash price” – the amount a shop would be ready to spend right away to buy a diamond, even if no one was now in need of one.
This price is the lowest since it demands an immediate expenditure of funds in exchange for nothing more than the possibility of a future sale.
This requires taking on risk, which must be compensated with an enormous potential benefit; otherwise, the risk’s cost is not worthwhile.
Therefore, if your diamond has a less desirable cut, an unsightly inclusion, or is otherwise challenging for a retailer to sell, you should anticipate suffering a significantly more significant loss when trying to sell it.
More Advice When It Comes to Selling Diamonds
First, you must question yourself: Are you sure you are prepared to sell?
Selling a diamond ring or jewelry isn’t particularly challenging, so long as you have reasonable expectations for the price.
Try the following advice if you’re considering selling to make the selling process easier:
First, Regarding the Worth of Your Ring, Be Reasonable
You won’t receive your ring or jewelry purchase price back, as was already indicated, even if it’s in perfect condition. Be honest with your price right away and be ready to accept the possibility of losing money on a sale.
Skip the Pawn Shops
Your diamond will never be valued fairly in a pawn shop. Instead, you’ll most likely only get an offer that represents, at most, a small portion of the diamond’s worth.
Don’t Go Into Local Jewelry Businesses
The same is valid for getting a fair price for your diamond from a neighborhood jewelry shop.
Even if you could get a better deal in a pawn shop, the jeweler ultimately has better choices than purchasing from you.
Do Think About Selling Online
You won’t get the whole amount you bought for your diamond ring back from internet retailers like eBay or Amazon, but you will get more money than you would from a local shop.
If you sell privately, be prepared to wait.
It is feasible to sell on eBay or Amazon, and you could make a little bit more money this way than selling elsewhere.
However, used diamond rings and jewelry seldom sell fast (particularly at close to retail pricing), so you might have to wait a while before someone buys your jewelry.
Here we are, bringing to an end our topic related to the sale of diamonds!
We believe we have provided the critical clarification on: Where to sell diamonds for the best price? The best response would be:
Although selling to a local jeweler or pawn shop could provide you access to quick cash, brick-and-mortar jewelry buyers sometimes offer lower prices than online buyers. Therefore, we suggest searching online for a reliable diamond buyer.
We did our best to provide you with as much information as possible about diamonds in this post, including their worth, how to sell them for the most money, and many other things, but we also wanted to amuse you.
Furthermore, we have done our best to adequately explain what you should do when it comes to selling your diamonds and what you should avoid doing.
We hope reading this post provides you the opportunity to understand more about selling diamonds and have fun in addition to learning a lot!