Selling diamond jewelry in times of financial need is often the last resort for many owners. This may be because each diamond is unique, or perhaps because of emotional associations. Whatever the reason, the decision to sell diamonds is not an easy one. The good thing is there is a healthy demand for second-hand diamond jewelry that was not the case a few years ago. Back in the day, many jewelers and pawn shops were only interested in buying gold. Today, with a growing number of the middle-class wanting to own diamond jewelry, you can easily find someone that will buy yours at any time. However, selling diamonds also require a bit more effort than selling gold. Here are some tips you should think about before selling your diamond.
- Find out exactly what you have
Most people take it on faith that when someone gives them a diamond ring that the stone is actually a diamond. The truth is, most people can’t tell the difference between a diamond and a piece of glass. Even if it does happen to be a diamond, it doesn’t mean it is a good one or worth a lot. Before you make plans on what your are going to do with the money from selling your fabulously valuable diamond, have it appraised. Find out exactly what you have on hand in terms of quality and value. A diamond is appraised based on the 4Cs – cut, clarity, color and carat. A qualified appraiser will consider all these points before providing an accurate description for your stone, and its probable cash value. For the sake of objectivity, you may want to find an appraiser that is neither trying to buy your diamond, or trying to sell you one. If you don’t want to spend for a formal appraisal, the next best thing is to bring it to two or three local pawnbrokers or jewelers to get a free appraisal. This can still give you a good idea of exactly what you have. Only then can you set your expectations of what you should get when you sell your diamond jewelry.
- Be realistic
Knowing its worth and setting a selling price is not the same, however. Unlike precious metals such as gold, silver, or platinum, the selling price of pre-owned diamonds is not going to be anywhere near the spot price. For one thing, the spot price for precious metals is based on easily quantifiable parameters. One gram of gold, for example, is the same no matter where you buy it. A one-carat diamond, however, is always going to be different. There is no standard price for diamonds because there are so many variables to consider, so getting a “spot” price is not possible.
For another thing, jewelers and pawnbrokers are going to resell your jewelry, so they will offer you a price with a healthy profit margin for themselves, and that means at least 20% less than the going rates for your quality and style of diamond. Otherwise, they would buy off suppliers and wholesalers, where they can get payment terms and do not have to offer cash. Some may even get it on consignment. If you are willing to wait for a higher price, you can find a jeweler who is willing to accept your jewelry on consignment.
- Decide on your priorities
There are many options for selling your diamond jewelry. You can sell it to the public online on auction sites or find a buyer through friends, colleagues, and family members. You can generally get better prices when you sell to an end-user rather than a reseller, mainly because private buyers will not have access to wholesalers or direct suppliers. However, diamond jewelry is not like selling cookies. You have to find a buyer who is willing to shell out a considerable amount of money, and that can take time. If you are in a hurry to sell, or you don’t want the hassle of marketing and negotiating with a private buyer, your best option is to sell to the jewelry industry.
You can quickly and easily strike a deal with a jeweler or pawnshop and walk away with cash on the spot. However, it is important that you deal with someone you can trust. Before deciding on a reseller, check their reputation in the community, and search for reviews online. You should also expect to get a lower price when you go this route, as explained earlier. If you have done your due diligence, you know when you are getting a realistic offer. The best thing about selling to reputable establishment is that you get your money at once. When time is of the essence, that makes up a lot for the difference between the actual retail price and the selling price.
- Consult your emotional state
Knowing you have to sell is not the same as being ready to sell. Many people have an emotional attachment to their diamond jewelry that can make it unexpectedly hard to actually let it go when the time comes. After going through all that trouble, this emotional tug can cause them decide at the last minute not to sell after all, or to sell and regret it afterwards. If you are having doubts, do not make any hasty decisions. weigh your options carefully to see if selling your diamond jewelry is really necessary. You may be able to hold off for a little while longer, or you may have other options you have not considered. If you have considered everything and you see that you really have no other option, it will bring you to the stage of emotional acceptance that will preclude future heartburnings and regrets. Until then, err on the side of caution and put off selling your diamond jewelry.
Selling diamond jewelry can be a good solution to a financial problem. However, it is not as easy as it seems. While there is a good demand for diamond jewelry, you need to be intellectually and emotionally prepared for the experience. These tips can help you make the right decisions when the time comes to sell diamonds.