Have you stumbled upon a diamond ring? You lucky dog! If you’re not sure what to do, the best place to start is – at least try – to find the owner.
It’s no easy task by any means – but you can turn to social networks. Of course, keep the details a secret so that you can make sure that the potential owner can describe the diamond ring – and you can be 100% sure that it really belongs to them.
The second option is to turn the item to the police. In most states, the police will hold on to the given item for a certain period – and if no one claims it, return it to the finder. That means that, most likely, the diamond will eventually end up back with you and become your property.
Chances that it will return to the actual owner are generally pretty slim, but that goes in your favor!
The final – and most important – question is: Can you sell a diamond you found?
So, let’s see what your options are!
Selling A Diamond You Have Found
Selling an item you found is usually a no-brainer, but things can get a bit complicated when it comes to diamonds. We’ve made an effort to answer all the crucial questions that could pop up during this process.
So, keep scrolling down.
Is It Legal To Sell Diamonds?
It is not illegal to sell diamonds, so do not worry; you won’t end up on the most wanted list.
Of course, you must not try to misrepresent the jewelry you are selling by claiming that lab-grown diamonds are the real – as in, natural – thing. If you do that, you can be charged for fraud.
Another thing you should avoid – if you don’t have the necessary paperwork – is selling uncut diamonds. That could put you behind bars.
When it comes to setting a price for the diamond jewelry you are trying to sell, you”ll have a couple of different options to choose from here.
We will discuss them all in the following section.
A word of warning before we start: Do business only with reputable diamond dealers since the diamond market can be shady, and you have to be careful who you are dealing with here.
Related Read: What Happens If You Find Diamonds On Your Property?
How To Set The Price On A Diamond You Have Found?
Take the diamond straight to the potential buyer and offer it for a defined price.
It goes without saying, but you should do this only if you have some knowledge or experience in appraising diamonds and can determine the approximate value of the diamond on your own.
In this case, it’s up to the buyer to decide if they agree your jewelry is worth what you are selling it for or not.
Alternatively, you can offer the diamond you have found to several potential buyers and sell it to the one who offers you the most. Online auctions are an option, too.
Go to a reputed certified appraiser that will issue you a grading certificate. It would be best if this person does not buy or sell diamonds at all. You want an objective, unbiased opinion.
Most qualified appraisers will first ask for the original purchase invoice and certificate but do not panic, just explain how you got the diamond. The appraiser will then closely examine the stone’s characteristics and condition.
You’ll get a chance to find out all your diamond’s positive and negative attributes and how much it is worth.
Getting a formal assessment is very helpful, but it costs money, too. The good news is – it’s not always necessary.
If you’re short on money or assume that diamond is not worth very much in the first place, you can have the evaluation performed by a potential buyer or even a pawnbroker. Remember to make sure you only choose reputable shops.
It is also advisable to visit more than one shop and get a range of opinions.
If you have a jeweler you can trust, you can arrange to consign your diamond through them – and then sit back and wait for the offers. It is a hassle-free method since the jeweler will display your diamond with their inventory and sell it at the price the two of you have agreed on beforehand.
There are two drawbacks of this selling method.
The first problem is that you might end up waiting quite a long time for an interested buyer to come by.
When your buyer does show up and purchases your diamond, not all the earnings will end up in your wallet. The jeweler will deduct their share of the earnings. Therefore, ensure that you ascertain the exact amount of money that will belong to you before you sign the agreement.
No matter how you choose to set the price of your diamond, bear one thing in mind:
If your price is a bargain (which means lower than the competition), the odds of selling your diamond fast are much higher.
So, you should opt for the maximum selling price only if you are in no hurry to sell.
- Where to Sell Diamonds for the Best Price?
- Diamond Price List: How Much Is A 0.1 To 40 Carat Diamond Worth?
How Much Can You Sell Diamonds For?
As you have noticed, setting the price of a diamond you have found is not an easy task. Many people assume they can simply go online, find a diamond of similar weight, quality, and cut, see what it sells for, and copy that price.
It does not work like that at all!
The main reason is the resale value of the diamond, which is by rule far below the price paid when you first purchased the stone. The resale value represents the sum you will get when reselling your diamond.
Due to the retail mark-up and the decline in diamond prices, you can resell diamond jewelry for only 25% to 50% of the original purchase price.
It is thus crucial to have realistic expectations when selling a diamond you have found.
Knowing what you got and having an accurate picture of the quality and authenticity of a diamond will save you from disappointment.
If you set a realistic price and get a valid estimate of how much your diamond might be worth in specific markets and current circumstances, you will know what to expect and feel satisfied with your sale results.
An experienced appraiser that is up to date with all the market trends will help you achieve that very thing.
Related Read: How To Sell A Diamond Ring For The Most Money?
Can You Avoid The Appraisal Costs?
Yes, but you’ll have to do a lot of legwork on your own.
Surprisingly enough, the internet can help you.
For example, you can start by browsing eBay sales for diamonds with similar characteristics, wait until the selling process is finalized, and see for how much they usually sell.
Alternatively, check out online retail stores that sell comparable new diamonds and look at their price. Of course, you must factor in a discount we have talked about since your diamond is pre-worn. And that usually means you’ll get 25 to 50% off from the original price.
The resale price of diamonds might not seem fair seen through the eyes of a person selling the item, but you need to remember one thing:
Whoever buys your diamond wants a good deal – that is why they are buying a “second-hand” stone in the first place. They can always buy a new diamond at the original sticker price!
- What Is Diamond Appraisal? Everything You Need To Know
- Diamond Appraisal Vs. Diamond Certification: Which One To Get?
What Are Your Selling Options?
When selling diamond jewelry you have found, you have two options:
- Sell it to the jewelry industry.
- Sell it to the public.
You surely want to get the top price, but that should not be your only priority – choosing a buyer is as important.
On that note, consider the following factors:
- How quickly can you settle the deal?
- How much can you trust the buyer?
- How ready is the buyer to negotiate with you?
Each of the two selling options we have listed for you has its advantages and disadvantages.
Let’s see what those are.
Selling your diamond jewelry to someone in the jewelry industry is likely to be quicker. Therefore the primary advantage of this option is time. It is also a safer process, especially if you choose a reputable jeweler, diamond dealer, or pawnbroker to do business with here.
Read More: How Much Does A Pawn Shop Pay For A Diamond Ring?
How Can You Know If You Should Trust Someone?
If you are uncertain about someone’s reputation, you can always check their Better Business Bureau rating. Our advice is to seek out American Gem Society members only.
What Are The Downsides Of Selling The Diamond You Found To The Jewelry Industry?
No jeweler, diamond dealer, or pawnbroker will pay you anywhere near the retail value. We have already warned you about this! They all want to earn a profit from your diamond, and thus they are not likely to pay top dollar.
Hence, the main advantage of selling your diamond jewelry to members of the public is that they’re often willing to pay more than industry insiders. These people don’t have access to wholesale prices and value every dollar they can save on high retail prices, too.
Unfortunately, it can be challenging to find the right buyer since there are many sketchy people out there. Selling online is particularly challenging.
Nevertheless, eBay might be one of the best options for selling diamonds to the public. It is a good, reliable, and safe platform. Having previous experience in eBay selling is a great plus, too!
There are some innovative online platforms for selling diamonds you can look into as well. They offer the same setup as eBay and allow you to list your diamond jewelry with a detailed description and pictures – but also act as intermediaries during the selling process.
Namely, once you and your buyer make a deal, both the diamond and money are sent to the site. The money is withheld until the diamond is authenticated and appraised by a certified, independent gemologist.
Only when the diamond certification process is finalized is the money released to you.
Of course, such service does not come free. You’ll have to pay a commission on sales.
You can rely on the already mentioned consignment shop or dealer to sell your diamond for you as well. In this way, the diamond will be sold to the public at a better price than if sold to an industry insider. Yet, the dealer will bill you a 25-40% commission.
If you opt for this selling method, make sure you have strong dealer references since you’ll be entrusting your diamond to an unknown person.
So, to wrap up this whole can you sell a diamond you found discussion:
Selling a diamond you have found might seem like too much of a hassle, but you need to remember just how lucky you were to stumble upon it in the first place!
It’s not every day people come across something as valuable as diamonds.
Yes, you need to perform your research and maybe even pay a commission – but in the end, you’ll have some extra dollars to spend on whatever you like. You did not pay for the diamond, so you should feel like a million bucks no matter how much you earn selling it.
Enjoy your good fortune!
Read Also: Can Diamonds Be Unlucky?