In most cases, we don't give much thought to the cost-benefit analysis of our purchases until after we've already made the deal. However, while being a retail commodity, diamonds are not as ubiquitous as some other things. Most of us are concerned with how much money we can make if we ever have to sell the diamond. Due to the poor resale value of diamonds, we may have to temper our desires.
So, you finally splurged on the stunning diamond engagement ring your future wife had been gushing about in a glossy magazine. Even though you spent a lot of money on a small piece of jewellery, you are no longer concerned about money issues. Also, isn't it true that diamonds can be purchased as an investment?
Unfortunately, the ring's value drops by half the moment you walk out the door, just five minutes after you paid the total price. Puzzling. Several factors have been proposed as potential justifications for this startling discovery.
How Much Is A Diamond Worth?
Our industry gives us access to cutting companies and distributor contacts so that we can determine the going rate for diamonds right now. However, setting a fair price for a diamond is more art than science.
But suppose you're simply an ordinary dude trying to sell a diamond ring to the general public. What factors determine a diamond ring's resale value? The 4Cs significantly determine diamond prices: cut, colour, clarity and carat weight.
To determine the diamond resale value, you can make price comparisons of your present diamond ring against others that are being sold in the market. When drawing comparisons, keep in mind that the finer points often make all the difference.
A GIA-certified diamond, for instance, needs to be evaluated against another GIA-certified diamond with comparable qualities. A diamond's worth can be affected by factors such as its fluorescence, the type of inclusions it contains, and the precision with which it was cut. You may wish to refer to this article on diamond prices for a full read.
Multiply the average retail price of a similar stone by 30%-75% to get a ballpark estimate of your diamond's resale value. Let's pretend you splurged on a Cartier or Harry Winston ring. In such an instance, the loss you take on the secondary market is likely more significant than it would be if you had bought the ring from an internet shop with a much smaller markup.
This is because the retail price would incorporate markups for the manufacturer and the cost of doing business. Most people purchasing diamond rings aren't concerned about your manufacturing, air conditioning, payroll, insurance, or shipping costs.
What matters to purchasers is the ring's intrinsic value, and if you're dealing with an expert, you can rest assured that their asking price is fair.
Can I Make Money Buying and Reselling a Diamond?
This was something mentioned to us by several folks who routinely scour auction sites for deals in the hopes of making a quick profit. Without thorough familiarity with the market and your specific goals, the maxim of "buy low, sell high" can lead to financial disaster.
Due to the superficial appearance of low costs, it is possible to be duped into purchasing an overpriced diamond ring from sites like eBay. The 4Cs and other features that are easy to miss by the untrained eye are crucial in determining a diamond's true worth.
To "purchase low" means to operate under the assumption that the seller is a fool who has no idea what they are selling. Furthermore, you'll need to locate a buyer willing to purchase it from you at a higher price, and you'll need to consider the risks associated with each step of the process to make a profit.
Do Diamonds Have A Resale Value?
The resale value of a diamond is the price you may expect to receive if you decide to sell it. The resale value is often far lower than what you spent because of the retail markup and the drop in diamond prices. The resale value of diamond jewellery is often between 25% and 50% of the original purchase price.
Do Diamonds Increase In Value Over Time?
The long and short of diamond investments is that the more scarce a diamond is, the more probable it is to appreciate over time due to supply and demand changes. Keeping a diamond in pristine condition is the best way to ensure its continued appreciation in worth.
How can I sell my diamond?
- Learn About Your Diamond Before Selling It.
- Establish Reasonable Diamond Pricing Expectations.
- Think about how quickly you need money from the sale of your diamond.
- Pick a Reliable Diamond Dealer.
- You Should Be Mentally and Emotionally Prepared to Part With Your Diamonds.
- Indicators of Diamond Selling Price.
Do Diamonds Have Resale Value?
In a nutshell, yes is the correct response to this inquiry.
The short answer is yes, but the long answer will walk you through the fundamentals of diamond trading (buying and selling). However, unlike gold, diamond jewellery and loose diamonds maintain a stable market value. Instead, it is contingent upon market forces governing the cost and availability of these gems.
Here Are All The Factors That Impact The Resale Value Of Diamonds:
Diamond Grading Certificates
A customer's initial option in diamond jewellery should be one they can trust. Ask for grading certificates (from the GIA, SGL, DGLA, or IGI) whenever you purchase a diamond (loose or set in the jewellery). Diamonds can only be sold with a certificate proving their origin, carat weight, cut, clarity, colour, and form. Certificates like this are crucial to the resale price of any diamond gem.
4Cs of Diamond
The 4Cs of diamonds—cut, clarity, colour, and carat—are familiar concepts to anybody who owns a diamond ring or other diamond jewellery. An in-depth explanation of the 4Cs of diamonds can be found in Melorra's devoted guide. The diamond's marketability improves with its clarity and carat weight. This information can be found in the diamond as mentioned above grading certifications.
Resale Market
Choosing the proper market and moment to sell your diamond is just as important as selecting the ideal diamond in terms of resale value. There are many different venues where diamonds can be resold, from auction houses and shops to pawn shops and jewellery stores.
Ultimately, the value you obtain from reselling your diamond jewellery in any of the areas mentioned above is determined by the correct timing and market demand. We advise you to research online to find out the lowest and highest prices at which your diamond can be resold.
Diamond Procurement
The location of the diamond's purchase and sale are of equal significance. Since huge brands include the value of their reputation and marketing dollars when pricing their products, a branded diamond necklace will always fetch a lower price than its cost. The typical loss on reselling a diamond is between 25% and 50% of its original purchase price.
Like the price of gold, diamonds' resale value can rise and fall depending on some circ*mstances. You can anticipate getting 25-50% less when you resell your diamond than you paid. But there are exceptions; if the diamond form is unusual or the diamond colour is scarce, you don't have to lower the price significantly. However, the skill of the people involved in the negotiation is essential. Additionally, we have a variety of gold coins available for perusal.
