You are most likely going to have a ton of questions if you are thinking about the possibility of selling your diamond ring or any other diamond jewelry. Is it worth it to sell my diamond? Diamond resale value: How much is your diamond worth? Do diamonds have good retail value? How much money do you get when you sell a diamond?
From the center stone of an engagement ring to a pair of diamond earrings, all diamonds have a resale value but it is almost always significantly less than the amount that you, your fiancé, or maybe your grandma paid to purchase the diamond when it was new.
The retail markup of the diamond and how you choose to sell it, to the difficulty of reselling a pre-owned diamond are only some of the several reasons as to why your diamond may be priced that way.
How much can I sell my diamond ring for?
There really is no precise and concrete answer to this question because no two diamonds, vendors, or potential buyers are the same. You will almost always lose money if you choose to sell any kind of diamond jewelry and it would depend on the several following factors:
- Where and how you choose to sell the diamond
It is clear that you would not get its retail price regardless of where you sell your diamond, and you could expect to receive between 20 percent and 60 percent of what the ring would originally cost, depending on where it was purchased.
- Where you bought your diamond ring
You are not only paying the market value of the diamonds when you purchase a diamond from a jewelry store, but you are also paying the markup added to the price by the retail store that is selling you the diamond.
Retail jewelers do not mine, cut and polish their own diamonds but they buy them from wholesalers who buy them from a diamond manufacturer. Markup is then added to the diamond by the retailers.
Their diamond markups can be very high since they have to pay for things like rent, staff salaries, and utilities. You are going to have to pay a significantly smaller markup most of the time if you buy a diamond online.
- How much the diamond is worth
Factors like the diamond’s cut quality, color, carat weight, and clarity are some of the
main factors that would determine the stone’s value. They are going to take a look at the GIA or AGS certificate that came with the diamond when you sell a diamond to an informed buyer and this certificate is an independent laboratory evaluation of the diamond’s quality.
Even a diamond with an outstanding evaluation would be worth less than the amount you paid for at retail, but jewelry stores and other buyers would usually be willing to pay more for a high-quality diamond than for a diamond that has a poor quality.
Do diamonds decrease or increase in value over time?
The prices of a diamond would fluctuate over time, so there really is no precise and concrete answer to this question because diamond prices increased in the tears directly after the Great Recession before declining slowly but steadily since the beginning of 2012over the last decade.
Diamonds do not increase significantly in value generally speaking but the vast majority of diamonds have decreased slightly in value over the last few years, outside of a small number of rare and colored diamonds, making them a poor investment from a price appreciation perspective.
The reality is that investing money in just about anything else would have produced a better return on investment over the same period than purchasing and keeping a diamond, even though looking at the statistics would make a diamond look like a good investment at first glance.
In conclusion, you would be able to get some money back if you decided to sell your diamond ring, or other diamond jewelry because they have some sort of resale value. But you are most likely going to lose money when you choose to sell your diamond because of the markup that is applied to diamonds, most jewelers, pawnshops, and all of the other buyers would only offer you a fraction of what you have generally paid for your diamond when you sell them.