What You Need To Know About The Value Of Your Diamond Before Selling It
So, you’ve decided to sell your diamond on the secondary market. There’s just one problem, you’re not really sure what the true value of your diamond is or what exactly the secondary market really is.
And you’re not the only one.
Not to worry! We are GSA Diamonds, your top diamond buyers in Indianapolis and we are here to make it easier to sell your diamonds and get top dollar. So let’s get down to business!
When it comes to the resale of your diamonds there are a few things you need to know.
Diamond Selling: Retail, Appraised, And Secondary Market Values
We can all agree that whether you are trying to sell a diamond big enough to have been worn by a celebrity or you are looking to sell a more modest stone, you deserve to get a fair and accurate price.
In order to get the best value for your diamonds, you need to understand the market better. This does not mean that you need to become an expert gemologist, but it will help to understand the basic definitions and the differences between retail, appraised, and the secondary market values.
The Retail Value
Simply put, the retail market value of your diamond (aka: current replacement value) is the value if you were to buy the diamond new. This value is based on the stone itself, labor, markup and the “premium” that goes along with popular brand names. It costs a lot of money to get your diamond jewelry from a mine to the retailer, and then to your hand. And the retail value reflects the costs associated with every step of the way. And let’s be honest, a piece of jewelry from a well-known designer will have a much higher value than other pieces with a diamond of similar quality.
Suggested reading: The Shocking Truth About Your Engagement Ring Size and Divorce Rates
The Appraised Value
As an example, if you are looking to find out the value of your diamond for insurance purposes you will need to know the appraised value. In order to account for inflation and rising prices, this is often much higher than the retail value. Unfortunately, the insurance value of your diamond is not the same as the cash value you should expect to receive when selling your diamond on the secondary market.
The Secondary Market Value
Here is where things get tricky.
You see, there is no one finite value for your diamond on the secondary market and the actual cash value of your diamond will depend on a variety of factors. A couple key factors include the condition of your diamond and who you are selling it to.
But, that’s just the beginning!
5 Important Facts About Selling Your Diamond On The Secondary Market
You’ve probably heard of the 4C’s of diamond grading, but there are still more factors to consider when determining the actual cash value of your diamond on the secondary market.
# 1. Grading values can vary: Diamond grading is subjective and your diamond buyer may not agree with your grading reports.
# 2. There are other elements to consider: Diamond and jewelry buyers also take into account whether or not your diamond was appraised as a loose stone or a set piece, as well as the impact of fluorescence on the diamond, positioning of inclusions and so on.
# 3. The retail and appraisal value will not be taken into account: Retailers and appraisers have a habit of amplifying the grading for their own benefit. This does not reflect the resale value and is not a factor in determining how much money you will receive.
# 4. The industry is always changing: Certain styles and trends may be more popular or less popular at certain times, causing the secondary market value to increase or decrease accordingly.
# 5. The cost of repair: No matter how well you care for your diamonds, wear and tear over time will still occur to some degree. If your diamond needs to be re-cut or re-polished, this will also affect how much money you may receive. So, if you are selling a diamond after a divorce, don’t let your emotions reflect how you care for your diamond ring.
In the end:
It’s important to understand that just because you bought your diamond jewelry for a certain price, and it was appraised at an even higher price, you should not expect to receive that amount if you sell your diamond later on. Educating yourself about your diamond and the diamond industry is a great start to understanding the value of your diamond. But, the best way to ensure that you will receive the best offer possible is to sell your diamond to a trusted and experienced diamond buyer like GSA Diamonds.
Contact us learn more about our diamond buying process or to set up an appointment with an expert gemologist.