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Is Selling Diamonds Legal?

Is Selling Diamonds Legal?

Diamonds are known for being luxurious stones and can be quite pricey. What if you need to get extra cash for whatever reason and you have a diamond ring sitting somewhere, reminding you of an ended relationship?

You may be asking yourself: Is selling diamonds legal?

To put it short, yes, you can legally sell your diamonds. However, you may want to know what exactly determines its value and what are the procedures for evaluating your diamond.

In this article, we’ve covered everything there is to know about diamond selling. Without further ado, let’s dive in.

Is It Illegal To Sell Diamonds?

As long as you don’t falsely represent the diamond jewelry you’re trying to sell, it’s not illegal. It’s up to the buyer to decide if the diamond jewelry is worth the money you want to sell it for. However, if you represent synthetic diamonds as natural, then that would be called a fraud.

Learn More: Can You Sell A Diamond You Found?

How Much Is A Diamond Worth?

A diamond’s value is determined by several factors, the most important of which include the gemstone’s color, clarity, cut, and carat. The 4 C’s are a well-known foundation for measuring the value and quality of the diamond. 

Carat 

The carat is simply the diamond’s weight measured in metric carats. One carat equals ⅕ gram and is subdivided into 100 points. Carat weight is the most objective grade of the diamond.

Color

The color of diamonds occurs in colors ranging from completely colorless, to shades of yellow and brown. Colorless diamonds are the rarest. Fancy-colored diamonds that are naturally red, blue, yellow, and pink are graded on a separate scale.

Clarity

Diamonds typically have internal flaws called inclusions, or external characteristics known as blemishes. Diamonds without blemishes or inclusions are rare. However, most of these characteristics can be seen only with magnification.

Cut

The cut is the way the cutter shapes the diamond and the precision and skill of the cutter’s work. The more precise the cut, the more gorgeous the diamond is to look at. 

In the 4 C’s, cut refers to a diamond cutter’s accuracy with which a gemstone is faceted. However, the cut also denotes the shape of the diamond. Some shapes are more valuable and more popular than others. 

Let’s take a look at the chart of shapes and prices for different diamond shapes with similar characteristics. To show how shape affects a diamond’s value, here are 10 different shapes of 1-carat diamonds. 

Round $2318
Princess $1790
Emerald $1709
Asscher $1893
Marquise $2419
Cushion $1628
Oval $2134
Radiant $1956
Heart $1954
Pear $2031

See Also: Can You Sell Uncut Diamonds?

Where To Sell A Diamond Near You?

A lot of people start their diamond-selling adventure with the local businesses near them. These might include diamond and gold exchange, local jewelry stores, or pawn shops.

Jewelers often buy diamond rings, loose diamonds, and other jewelry. They also provide insurance replacement appraisals. Pawnshops also buy diamond jewelry and loose diamonds. However, they buy it for far below what a jeweler will pay.

Learn More:

Is A Diamond A Good Investment?

In terms of money, diamonds aren’t a good investment. It’s not likely to see diamond jewelry appreciate over time. Some of the reasons are:

  • People who buy diamonds are only interested in the center stone. Center stone can be repurposed into other more contemporary pieces of jewelry.
  • The retail price you paid includes labor, smaller side stones, the design, and the retail experience. A diamond exchange or diamond wholesale buyer will belt the metal down to scrap.
  • Wholesale buyers need to make a profit when they resell your diamond jewelry, so they like to buy at lower prices. After that, they sell the diamond for a higher price.
  • The market for diamonds changes all the time, so the market price of your diamond jewelry may have dropped since you originally bought it. On top of that, the diamond resale value fluctuates with supply and demand.

Is It A Good Time To Sell Diamonds?

Even though diamonds have held their value over history, in 2021, diamond prices declined at both retail and wholesale levels. On the other hand, you may want to hold on to your diamond and sell it at the event prices return. You can also choose to sell it now before prices drop even more.

On the flip side, the emotional aspect of diamond jewelry suggests that letting go of items that remind you of ended relationship makes it a good time to sell. You can always put your money into another investment that has a high return.

Learn More: Who Controls The Price Of Diamonds?

How To Get A Diamond Appraisal?

A diamond appraisal is an estimate of a diamond’s worth. The appraisal value will be based on the current diamond market and the quality of your diamond. An appraisal will typically take into consideration the information found in a certification. Appraisals are usually conducted when a diamond is being sold.

In the end, a diamond is worth what someone is willing to pay you for it. By searching online you can educate yourself about diamonds and the current marketplace and get a sense of how much your diamond is worth.

If you want to have your diamond appraised, you can find a professional appraiser or jeweler that offers appraisals and make an appointment.

You can also send your diamond out for an appraisal. First, you will need to find a trustworthy appraiser who accepts diamonds through shipping and connect with them to understand their process.

Some appraisers provide the shipping label that you can use to send the diamond. Others require you to coordinate shipping yourself. This is why it’s crucial to understand the appraiser’s process before you make a decision.

If you are the one purchasing shipping for your diamond, it’s important that you purchase an appropriate level of insurance in case your diamond gets stolen, lost, or damaged during transit.

A diamond appraisal involves inspection of your diamond by a professional. They’ll evaluate the quality of your diamond. Using that information and the current market situation, they’ll assign a value to the gemstone.

If your diamond is mounted in a piece of jewelry, the gemstone may need to be removed during inspection for accurate results.

An in-person appraisal can be done between 30 minutes and one hour. However, it can take a week to receive the final report. If you send your diamond for appraisal, it can take from few days to few weeks to complete.

Diamond appraisers usually charge a flat fee, either by the piece or by the hour. Average hourly rates for the appraisal can be from $50 per hour up to $150 per hour.

Related Read: Diamond Appraisal Vs. Diamond Certification: Which One To Get?

How To Get Your Diamond Certified?

In order to get your diamond certified, you need to select a gemological laboratory to conduct an analysis of your gemstone and give it a certification. Due to each lab’s process and grading requirements are varying, it’s important to do your own research so that you can select the lab that you’re most comfortable working with.

The GIA is best known for being the inventor of the 4 C’s method of evaluating and certifying diamonds based on their cut, color, carat, and clarity. This is now the industry standard. Additionally, GIA also considers the diamond’s depth, symmetry, polish, and fluorescence

A GIA report includes a number of illustrations and diagrams that show the stone’s proportions, clarity, and any flaws. It’s important to mention that the GIA only evaluates loose gemstones. If your diamond is placed in a piece of jewelry, it will need to be removed for evaluation. A professional jeweler can help you with this if it’s necessary.

The GIA website recommends that individuals interested in their certification submit their diamonds through a jeweler who is familiar with the process in order to prevent any issues. 

The cost of GIA certification depends on the diamond’s size. It ranges between $48 for a 0.15-0.22 carat diamond and $110 for a 1.00-1.19 carat diamond, all the way up to $3000 for a 50+ carat gemstone. 

The EGL evaluates both mounted and loose diamonds, which makes them ideal if you have mounted diamonds and you’re unwilling to remove them from its setting. 

It’s important to mention that because the diamond is mounted it won’t be possible to fully evaluate the surface of the gemstone or the exact carat weight, which will result in a less compelling report.

To submit your diamond for certification, you’ll need to open an EGL customer account. After that, you will need to finish a submission form and pack that form with your diamond. The EGL provides the shipping label, which you need to affix to your package. Then you need to ship your package via a trusted shipping service.

We recommend you insure your package in case it gets stolen or lost during transit.

The cost of an EGL certification also depends on the size of the diamond. It ranges between $60 for a stone up to 0.69 carats and $65 per carat for a stone that is at least one carat. Reports for black diamonds and colored diamonds may include different fees.

The IGI certifies diamonds based on the same general characteristics as other labs. Additionally, the lab will evaluate if the diamond is natural or lab-grown. These details are all outlined in a detailed report that also shows any other relevant information about the gemstone.

The IGI processes many gemstones in rapid succession due to them being popular amongst many large jewelry companies. 

Because of the high speed at which IGI processes their reports, as well as their a bit relaxed grading standards compared to other laboratories, many reviewers approach IGI reports with skepticism.

The cost of an IGI certification depends on the diamond’s carat weight. Price range from $35 for a gemstone up to 0.22 carats, to $125 for a gemstone 0.96-1.45 carats, to $575 for a gemstone that is 7.95-9.94 carats in size.

The AGS is usually considered to be one of the best gemological labs for diamond certification. Like GIA, the AGS is a nonprofit trade association.

Just like other laboratories, the AGS grades diamonds based on their carat size, cut, color, and clarity. Color, clarity, and cut are each graded on a scale of 0 to 10, with 10 being the lowest possible grade and 0 being the highest possible grade.

The report also shows the stone’s style and shape as well as its measurements, and makes use of diagrams to depict additional information. The AGS grades both loose and mounted stones.

Sadly, the AGS only completes certification for those in the industry. This means that in order to receive their certification, you need to work with a qualifying jeweler. Such jewelers are familiar with the submission process and are able to guide you through it.

Learn More: Is IGI As Good As GIA?

Bottom line

If you’re still asking yourself “is selling diamonds legal” let us answer it once and for all:

As long as you aren’t advertising something that isn’t a real diamond, it is perfectly legal to sell diamonds, otherwise, you’re committing fraud.

Diamond’s value is determined by various factors, such as its carat weight, clarity, cut, and color.

People usually start with their diamond-selling journey with the local businesses near them. These include jewelry stores, pawnshops, and diamond and gold exchanges.

An estimate of a diamond’s worth is called a diamond appraisal. The appraisal value is based on the diamond’s quality and current market. However, the diamonds are worth what the buyer is willing to pay for them.

If you want to get your diamond certified you need to choose a gemological laboratory to carry out an analysis of your diamond and give it certification. Some of the most popular and trustworthy gemological labs include GIA, IGI, AGS, and EGL.

While diamonds sales can be scary and stressful, you can always go to your local jewelry and see if they want to buy your diamond jewelry or loose diamond for cash.

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