You’ve decided to part ways with your diamond ring to get some cash, but soon you notice that its resale value isn’t the same as its retail value.
So, what’s your next step? Is there a way to get more than what your local jeweler offered you?
Unfortunately, the resale value of diamonds is only a fraction of what they’re sold for in retail stores, and there’s almost nothing you can do about it.
But don’t despair. While you may not get the exact sum you originally paid for your diamond ring, there are ways you can get the best price out of it.
In this article, we’ll talk about how to sell a diamond ring for the most money. If you’re interested in finding out more about the main topic and more, keep reading, and you’ll find out some pretty interesting facts shortly!
The Resale Value of Diamonds
While you may expect to get for your diamond ring what you’ve originally paid for it, or at least something close to that sum, this rarely happens.
Usually, the resale value of a diamond ring is around 25%-50% of its original purchase price.
Remember, this is only the average value, meaning the price of your ring will vary from buyer to buyer.
Why Is the Resale Value of Diamonds So Low?
To find out why the resale value of diamonds is so low, we need to walk through the basics of the diamond trade.
Large mining companies such as DeBeers, ALROSA, and Rio Tinto Diamonds dictate the price of diamonds. Retail stores can buy diamonds directly from the mines or from wholesale diamond traders. Moreover, retailers also have the option to buy from diamond brokers.
When buying diamonds in bulk, their price is relatively low. But, the diamond reaches the store, its price skyrockets.
That’s because of the markup on diamonds which is on average around 160%-300%. However, the markup can get as high as 1000% depending on the jewelry store.
So, when a diamond is bought, its price drops because there’s no more markup.
What Affects the Resale Value of Diamond Jewelry?
Many factors contribute to the resale value of diamond jewelry, including:
- Grading certificate
- Resale market
- Diamond procurement
- Resale market
- The 4Cs (cut, clarity, carat, and color)
- The historical significance of the diamond
Knowing what affects the resale value of diamond jewelry, let’s look at what you can do to get the most money for your diamond ring.
Related Read: How Are Diamond Prices Calculated?
How to Get the Best Price for Your Diamond Ring?
It is nearly impossible to sell your diamond ring and get back the money you paid for it. However, there’s no need to despair because you can still sell it for a good amount.
You can do a few things to get the best price for your diamond ring. Let’s see what can help you sell your diamond for a good price.
Get a Grading Certificate and Appraisal for Your Diamond Ring
When selling any diamond jewelry, having a grading certificate from a reputable lab and a diamond appraisal is crucial.
You can’t expect your potential customer to take you by the word on the specifications of your diamond. That’s because there are diamond grading reports and certificates that should do it.
Diamond certificates and appraisals give a clear insight into the characteristics of a diamond, including the 4Cs, measurements, and retail value.
Moreover, grading and appraising are done by a neutral third party which eliminates the possibility of biased opinions. This will give your potential buyer more insurance so that you’re not “ripping them off”.
Just like you wouldn’t buy diamond jewelry from a jeweler that can’t provide authentication and proof of their quality, the same standards apply to you too.
You should get a diamond grading report from a reputable lab like GIA, SGL, IGI, or DGLA. This will increase the chances of selling your diamond for a good price.
Getting a diamond appraisal for your diamond ring is also recommended. This document contains information about the diamond and the setting together and their separated value.
The diamond appraisal document will help you and the one buying your diamond ring. You will have a clear insight into the market price of the diamond, and from there, you’ll be able to negotiate the price.
- What Is Diamond Appraisal? Everything You Need To Know
- Diamond Grading Lab: Which Diamond Certification Is Best?
- Diamond Appraisal Vs. Diamond Certification: Which One To Get?
Other Things That Can Help
A diamond’s price not only depends on its quality but also on where you bought it. So, if you purchased your diamond in a famous and reputable store, you can use that information when selling it.
Generally, when selling a diamond, it’s best to have as much paperwork and documents as possible.
Authenticity cards, receipts, boxes, and papers will be used when selling any kind of diamond jewelry.
Set a Price Range
Once all the paperwork is gathered, you should consider what price you want to get for your diamond ring.
The price range you set should be something reasonable, meaning not too high nor too low. The best would be to research the prices before you settle on one.
You can start by comparing your diamond’s estimated value (diamond appraisal) against the Rapaport price list. In short, this is a price list jewelers use as a guideline when setting the prices of diamonds in their stores.
The Rapaport report will give you an idea of how much you should ask for your diamond ring.
Another thing you should do is investigate the prices on the second-hand market. You can look up how much others sell their diamond jewelry online.
You can start with setting a slightly higher price and see if someone will bite the hook. Maybe you’ll get lucky, so don’t start too low.
If no potential customer is in sight, lower the price. But don’t go too low. It may take some time for someone to agree to your deal.
- Raw Uncut Diamond Price List: Rough Diamond Prices Guide
- Lab-grown Diamond Price List: Natural Vs. Lab Diamonds Price
- Diamond Price List: How Much Is A 0.1 To 40 Carat Diamond Worth?
Once you’ve decided on the lowest price you’re willing to sell your diamond for, all you need to do is wait for someone to offer that price.
However, this may require more patience than you think. It can take months to get a good deal on your diamond. If you’re in a hurry and want to sell your diamond ring as soon as possible, you’ll probably need to set a lower price than what it’s worth.
This isn’t anything strange because even jewelers struggle with selling their diamond jewelry. To sell their diamond jewelry, retail stores sometimes have to make sales to attract customers.
Related Read: How To Buy A Diamond Ring Without Getting Duped?
Can You Increase the Resale Value of Your Diamond Ring?
One way to increase your diamond ring’s value is to upgrade it.
You could add more diamonds, change the setting, and change the metal to make it look more appealing to potential customers.
A major downside of upgrading is that you’ll have to pay for the upgrade. The whole hassle of upgrading may not be worth the time and money. Be sure to calculate how much value your diamond ring will gain with an upgrade and how much you’ll spend on it.
You can ask a jeweler to help you calculate how much you would get for your diamond ring if you upgrade it. They’ll be able to tell you if upgrading is worth it and what’s the best upgrade for getting the most money.
If wear and tear got the best out of your diamond ring, or if it has some visible damage, the best would be to repair it. While an upgrade may not be with doing, repairing your diamond ring is.
A damaged and worn-out diamond ring is worth much less than the same one but is in pristine condition. So, ensure your ring is in the same condition as when you bought it or upgraded it.
It’s always best to get the repair done by the jeweler from whom you bought the diamond ring. Often, jewelers do repairs for free or with a discount for their customers.
If going to the jeweler from whom you bought the ring isn’t an option, you can go to any other jeweler. Remember that some will charge you more than others for the same repairs.
Don’t settle for the first offer you get. Look around for other options. The other jeweler just down the street may do the repair for half the price.
Related Read: Can a Chipped Diamond Ring Be Repaired?
Where to Sell Diamonds for the Best Price?
You may think that there’s someone specific you can turn to who’ll buy your diamond ring for the current market price. Unfortunately, this is rarely the case. You may get lucky enough and sell your diamond ring for its retail value, but don’t expect such a scenario.
This may only happen if you have a rare diamond jewelry piece. A fantastic example is flawless diamonds, extremely rare fancy colored diamonds, or diamonds of historical significance that even the news thinks are worth mentioning.
You’ll have to settle for a lower price if that isn’t the case.
There are many different options where you can sell your diamond jewelry. However, not all will pay what you’re asking for the diamond ring.
So, let’s look at the option and determine where you can sell your diamond ring for the best price.
Let’s start with the worst option – Pawn shops.
Pawn shops are only a good option if you need quick cash. So, if you want to sell your diamond ring for the most money, avoid them at all costs.
Usually, pawn shops offer around 20%-60% of the diamond’s actual value. The only way for pawn shops to profit is to do business in such a manner.
Moreover, you’ll have to haggle when selling, so if you’re not good at it, it’s best to look for other options.
Jewelry stores that buy off diamond jewelry are similar to pawn shops. However, they may offer to buy your diamond ring for a slightly higher price.
Jewelers will make you an offer based on the Rapaport price list. Usually, they will try to buy your diamond ring for the dump price, which is around 40% of the diamond ring’s value.
To get a better deal, you’ll have to keep bargaining until you reach an agreement to get a better deal.
Online stores have become a popular option for selling diamonds. So popular that even retailers are switching to online shops.
A good thing about selling your diamond ring online is that you can set a price and just wait for someone to call you.
However, it may take a while before that happens because many are still skeptical about buying diamond jewelry online.
Can a Jeweler Help You Get the Best Money for Your Diamond Ring?
A jeweler can help you sell your diamond ring, but you won’t necessarily get the most money this way.
You can strike a deal with your local jeweler and place your diamond ring on consignment in their store. This means that the jeweler will put your ring among their inventory and try to sell it on your behalf.
Consigning diamond jewelry is a good idea because customers usually have more trust in physical stores than independent online sellers. Moreover, if the store has a lot of traffic, the diamond ring will be sold in no time.
But, consigning also has its downsides.
When the jeweler sells your diamond ring, they’ll take a cut of the sale. Usually, the jeweler will keep around 40% of the sale price, meaning you’ll get 60%.
Of course, this is only a rough estimate. The jeweler may give you more percent of the sale if you’re a long-time customer. So, try negotiating with your local jeweler first and then move on to other options.
Related Read: How Do You Avoid Diamond Switching At The Jeweler?
What Is the Best Case Scenario When Selling a Diamond Ring?
The ideal scenario is to get the same or more of what you originally paid for your diamond ring. However, this is a one-in-a-million scenario.
When you have all the paperwork, are patient, and play it right, you could sell your diamond for 90% of the market price.
Is It Worth Selling Your Diamond Ring?
Generally, the answer is yes.
Diamonds are sold for huge amounts of money, so even if you get 60% of what you originally paid for your diamond ring, it still is a large amount.
However, if the ring has sentimental value to you, giving it away for only a fraction of its retail value would be a shame. We recommend waiting until someone offers you at least 80%-90% of its original price.
On the other hand, if you’re in a hurry and want to get the most money in a short time, consigning with a jeweler may be best. You’ll most likely get around 60%-70% of the sale, which is a good price.
Related Read: How to Sell a Diamond Without Certificate?
You’ll always be able to sell your diamond ring, but not always for a fair price. More often than not, the resale value of diamonds is only a fraction of their retail value.
Luckily, with the right documentation for your diamond ring and some knowledge of where it’s best to resell it, you’ll be able to get the most money for it.
While a diamond is worth how much one is willing to pay, there’s only a slight chance you’ll sell it for its retail price.
Ultimately, you decide the value and price of your diamond.
So, if you aren’t happy with what most want to pay for your diamond ring, you’ll need to be patient or give up on the selling idea.
We hope this article answers your question: How to sell a diamond ring for the most money? and that our tips will help you in selling your diamonds.