Diamonds often carry a certain significance that is even more valuable than the diamonds themselves. Whether it’s a marriage proposal, an anniversary gift, or just to commemorate a special moment or person, they’re representative of special moments. Sometimes, they’re even handed down from generation to generation as a special family heirloom.
When a diamond loses that special tie – when it doesn’t carry the sentimental value that it once did – then often the value of the actual diamond trumps that of holding on to it. Other times, people are even eager to get rid of the diamonds. Either way, it’s often perfectly acceptable to sell an old diamond that is no longer valuable to you.
In general, the resale market for diamonds is not strong. This now-famous, 35-year-old article in The Atlantic, discusses in detail how the diamond market is manipulated. The result is overpriced diamonds on the consumer market, and weak incentives for the second-hand jewelry market. When you hear that diamonds lose considerable value right when you walk out the door – much like buying a new car – it’s not so much the jeweler’s fault as it is the markets.
In other words, don’t expect close to retail for your unwanted diamond. But that doesn’t mean they aren’t worth selling. Diamonds can still be worth a considerable amount, so it’s better to sell than let it collect dust (and potentially lose more value) hiding in a drawer.
Just because diamonds are worth less on the resale market doesn’t mean you should accept the first lowball offer that comes your way. On the contrary, it’s even more import to price shop and find who is willing to pay the most. It’s typically beneficial to weight offers from several different diamond buyers, even playing the offers off against each other. Create a little bidding war to see what you can get!
But who to choose? Here are places you may want to sell your diamond:
1) Local Jeweler
You could go directly to a nice jeweler showroom and sell it to the people it may have been bought from years ago. The only problem here, is they’ve got a lot of costs to make up for. An expensive showroom, lots of inventory, security, full-time staff, and difficult rules when it comes to the resale of diamonds. In the end, jewelers usually will offer less than other sales methods if you bargain properly.
2) Pawn Shop
Pawn Shops get a bad rap, but they’re the original resale source. Should you walk into the pawn shop and take the first offer these guys give you? Probably not. Most aren’t trained in how to properly evaluate the price of a diamond, so you’ll be working with someone who might be guessing – and guessing low – to allow for some margin of error. Even with a proper GIA certificate, you’ll probably want to stick to more “mainstream” pawn shops that specialize in diamonds if your area has one. If it does, it’s not a bad idea to add this to your list of places to get a price from.
3) Online Diamond Buyer
Selling diamonds online is becoming increasingly popular. With advanced online security measures, cheaper shipping and insurance, and a growing secondhand market, online diamond shops are becoming a great source. Since they are operate online and have the capability to source from the entire country, the overhead/transaction is much lower, experts can be employed to more accurately appraise your diamonds, and margins can be lower. Sell My Diamond Jewelry reviews several online diamond buyers to help you find a trustworthy buyer. The only bad news is it takes a few days to execute, especially if you want to compare prices between a couple online buyers.
This method carries the most risk, but probably the most reward as well. It can be a little dodgy carrying out several thousand (or tens of thousands) of dollars in transactions over complete strangers online, or even locally, so proceed with caution on this one. But if you can find someone in need of a diamond ring, they’ll probably be happy to save a little bit off retail, and you can get more for your ring. It’s a win-win, unless of course you get robbed or wake up in a gutter.
Whether you’re selling to a local jeweler or to an online buyer, CHECK REVIEWS FIRST! Many of these companies bank on making a huge profit off unsuspecting customers occasionally, so don’t let yourself become one of them. The more reviews, the better, and read through them to make sure they are substantiated, real reviews.
Selling your diamond doesn’t have to be a bad experience. If you’ve accepted that you’ll get much less than retail value, do your homework, and weigh multiple offers, then you can rest assured you’re getting a good price for your diamond.