Anyone in the market for a new piece of jewelry will want to consider purchasing a diamond. A quality diamond stone has continued to be an impressive piece of jewelry due to the beauty, rarity, and other benefits that come along with it. Because of this, diamonds are a popular choice for engagement rings, wedding bands, earrings, necklaces, and other jewelry pieces.
While diamonds have continued to be a popular stone to be placed in various forms of jewelry and people likely intend to own them for a long time, there may come a situation in which you need to sell the jewelry. In these situations, you may find that a quality diamond could hold its value very well and even appreciate it as the years go by. You will want to understand a fair resale value as you are looking to sell. Since the value and price of a diamond can range from the low thousands of dollars to over a million, understanding the process of valuing it is very important. Various factors go into determining a fair resale value of a diamond.
Factors That Determine The Fair Resale Value of Your Diamond
Determining the proper resale value of your diamond is very important in any situation. There are various factors to consider that could help you determine a fair resale value for your diamond.
Level of Materials and Diamond Quality
When you are looking to sell a diamond of any kind, the quality of the diamond and the level of the materials involved will be major contributing factors. Anyone that has purchased a diamond will be aware of the 4 Cs that come with evaluating a diamond, which is as follows:
- Clarity – Anyone who will purchase a diamond will want to get one that is clear. Overall clarity will have a major impact on the final sales price when looking into the resale of diamond jewelry. Improved clarity will help to bring more sparkle and shine to a diamond and help it stand out.
- Cut – The cut does not refer to the diamond’s shape, but the symmetry, proportioning, and polish of the stone. Some of the most common diamond cuts are princess, emerald, and round. Generally, a cut designed to help capture and reflect more sunlight will help increase the value of the diamond.
- Color – When most people think of diamonds, they think of what looks clear with a bit of color. However, diamonds naturally can come in different colors and shades. When looking to value a diamond, the color will be rated on a letter scale from D to M. A diamond value calculator will find that one with the highest color rating could be worth four times or more than those with the lowest color rating.
- Carat – The carat of a diamond refers to the weight and size of the diamond. This tends to be the most significant contributing factor to the overall price of a diamond. For an engagement ring, the typical size is around 1 carat. As larger diamonds are rarer, the cost and value can increase exponentially. For example, a 3-carat diamond could cost up to ten times a 1-carat diamond.
Beyond the quality of the diamond, the jewelry materials will also impact the value of the jewelry. For engagement rings, the band’s quality will significantly impact overall value. A high-quality band made of platinum can cost far more than one made of stainless steel.
Condition of Diamond and Jewelry
As you are looking to value the diamond and jewelry, you also need to consider the condition of the diamond. A diamond continues to be a very popular jewelry stone option as they are known to be very durable. However, diamonds can be damaged if not adequately taken care of. With significant force, it is possible to crack or scratch a diamond. Further, diamonds can lose color and clarity if exposed to the wrong chemicals.
In some cases, this can be fixed if you receive a proper professional diamond cleaning. The value can also be impacted if the band is cracked, chipped, or looks worn. If you want to maximize the value of a diamond, having it cleaned and refurbished prior to sale is always a good idea.
Reputation of Lab
Another factor to consider when determining the resale of diamond jewelry is the lab’s reputation where it was produced. While diamonds continue to be mined from natural sources worldwide, lab-created diamonds are increasing in popularity. Part of this is because the labs can create diamonds to specifications and know the exact ratings for the 4Cs. The overall reputation of the lab that created the diamond can impact the final value.
Where the Diamond was Purchased From
As you are looking to sell a diamond, the source of the original purchase will also have a big impact on the final value when you resell it. When it comes to the resale of diamond jewelry, purchasing the jewelry from a name-brand high-end jeweler will almost always yield you a higher resale price. This is because of the reputation and demand for products from these jewelers. It will also give more comfort to the resale purchaser that they are buying a carefully crafted diamond.
Name of the Brand of Designer
As you are looking to sell your diamond, you should consider the name of the brand and designer. Like purchasing a diamond sourced from a reputable jeweler, buyers will also be willing to pay a premium for jewelry that came from a top designer. Some of the most popular designers of diamond jewelry in the world continue to be Verragio, Danhov, and Martin Flyer.
Market Value of the Diamond
Ultimately, the largest driver of price when it comes to the resale of diamond jewelry is the market value of the diamond. Any diamond buyer, wholesaler, or even individual buyer online will use a diamond value calculator to determine a fair value. You can determine the appropriate market value of the diamond by using one of these tools or by hiring a jewelry appraiser to come up with an appropriate valuation.
Tips For Quoting a Fair Price For Your Diamond
When you are going to sell a diamond, coming up with a fair price for your diamond is very important. By following these tips, you can help to quote a fair price for your prized stone and jewelry.
Do Your Diligence to Determine Value
The first thing you should do when looking into the resale of diamond jewelry would be to do your diligence to determine the value. Online diamond valuation tools can give you a good idea of what your diamond would be worth. To use one of these tools, you will need to know the diamond’s cut, clarity, carat size, and color. It will also be helpful to know the original lab, brand, and jeweler. If you have all of this information, the online tools can give you a sense of a fair market value for retail, wholesale, and private party sales price. The value will also be impacted by the type of band and condition of the jewelry.
Another way to determine the fair value of your diamond is by receiving an appraisal. This is particularly helpful if you do not know the current ratings of your diamond. The appraiser will develop a fair market price, which you could use as a starting point when looking to sell your diamonds. An appraisal can also be helpful as it will provide you with a third-party report that can help confirm the price.
Understand You Won’t Receive Retail Price
As you are looking to value your diamond, it is essential to understand that you will not receive the full retail price. Most people who start valuing their jewelry should look at what similar diamonds and jewelry pieces are listed for at major jewelers. It is important to remember that jewelers can command a higher margin than individual sellers. Due to this, you should quote your jewelry at a discount compared to what you find online.
When you are interested in the resale of diamond jewelry, you must understand the current value of the diamond and come up with a fair price to quote. When looking to sell any form of jewelry, speaking with professionals first can be a great idea. They can help you understand the current value of your diamond and determine appropriate sales prices. This can help ensure a quick sale and receive the best final price possible.