If you are currently looking to sell your diamonds, ensuring that you get a fair sale price is essential. This guide will help you find reputable diamond buyers that will help you maximize your returns and enjoy a super smooth process.
In this guide to selling diamonds, we'll discuss a host of critical topics, including but not limited to;
When and why you might want to sell diamonds,
The four Cs and their pricing implications,
How to find diamond buyers that offer a fair price,
How to prepare diamonds for sale.
Real-life examples of successful diamond sales.
Why Sell Diamonds?
Diamonds boast a timeless appeal, making them attractive to diamond buyers. But while there is no denying their beauty, there are many reasons for wanting to sell diamonds. They offer one of the fastest routes to a noteworthy cash injection.
There are many reasons why you may wish to sell diamonds, such as;
Diamond jewelry conjures up negative memories
You need money fast for a family emergency
You've replaced the diamond jewelry with something better
The diamonds were inherited, and you don't have use for them
Your fashion style preferences have changed
Over 140 million carats of diamonds are produced worldwide per year. When selling diamonds, you can replace them with other products later if you decide to.
Meanwhile, many investors trade diamonds by buying them at a low price and selling them for a profit. Whatever the reason for wanting to sell your diamonds, you'll also have the versatility of selling loose diamonds or diamond jewelry.
Understanding the 4 Cs of Diamonds
Before looking for the right diamond buyers, it's crucial that you understand what impacts the cost of a diamond. Firstly, lab-grown diamonds are typically 40% to 60% cheaper than natural diamonds mined in Russia and other popular destinations. If you are still determining whether your diamonds are natural, this is the first thing to have checked.
The next step will be to check the four Cs of diamonds used by the Gemological Institute of America (GIA) to certify the quality of a diamond and help guide the pricing.
Cut - this measures the balance and brilliance of the diamond to determine how well it is proportioned. It is the most influential of the four Cs, with the top 3% of diamonds falling into the top category of "ideal."
Color - the color chart runs from D (completely colorless) to Z. Anything between D and K is considered higher quality. In contrast, diamonds from L to Z are more visibly colored and less expensive.
Carat - while this is the most commonly known item of the four Cs, many people wrongly believe it focuses on the size. In reality, carat values are determined by the weight of the diamond. One carat is equal to 0.2 grams.
Clarity - Diamond clarity assesses the small imperfections seen in the diamond. They are known as inclusions. The chart runs from Flawless to Internally Flawed, Very Slightly included (VVS), VS, S, and Included diamonds.
Each of the four Cs will influence the cost of the diamonds and should be analyzed whether you buy or sell diamonds.
Other Aspects of Assessing Diamonds & Getting Certified
The four Cs of diamonds are a great starting point for assessing diamonds. However, there are a host of other issues that could impact how much diamond buyers are prepared to pay. When the demand is high, selling diamonds at the right time will aid the cause. Meanwhile, the shape of the diamond is another critical feature.
Diamonds may be shaped as round, princess, emerald, asscher, marquise, oval, radiant, pear, heart, or cushion.
Each characteristic can impact the price and demand when evaluating diamond quality. Appraisals should be acquired to provide detailed insight into the diamond's worth. GIA or American Gem Society (AGS) certifications are considered the best.
They will provide complete information on the four Cs, including precise measurements, while documenting the diamond's characteristics via a plotted graph. This visual representation can be beneficial during the diamond-selling process.
Researching Diamond Buyers to Get a Fair Price
Knowing how to assess the quality of your diamond(s) is one thing, but finding the right diamond buyers is another.
The global diamond industry is expected to reach USD 139.91 billion by 2030. So, it should be no surprise to learn that many prospective buyers are out there. Likewise, it is hardly unsurprising to discover that some are better than others.
It's crucial to find trustworthy buyers for your diamonds for many reasons. A trusted and reputable buyer will conduct a complete analysis of the diamond so that they know what they are buying. They must offer honest disclosures, which ultimately means getting a fair price. Of course, they will make a small profit, but you eliminate the risk of being paid what you usually expect for a lower-quality product.
As well as calculating the diamond's price fairly, this is the best way to ensure that you don't fall victim to fraud or theft. It also results in a pressure-free sale in which you gain a valuation and completely control whether you want to sell. To find a reputable diamond buyer, you should;
Check that they buy your type of diamond (loose or jewelry)
Confirm that the company has been in business for some time
Verify that they have legitimate memberships
Confirm that they have a valid business address (especially for online buyers)
Ask what analysis they offer and check if it ticks the boxes above.
Read customer testimonials to see what others say about the company
What Other Options Are Available for Selling Diamonds?
Specialized jewelry-buying companies like American Gold & Diamond Buyers are an excellent choice for selling diamonds, but other routes are available.
Local Jewelers
Like specialized buyers, local jewelers have trusted members of the community. You can find them in your local area and visit them in person, giving you optimal safety throughout the process. There's also no risk of the jeweler asking for a refund.
Pros: They use a fair appraisal. Local jewelers are usually conveniently located.
Cons: Jewelers may offer a lower price to make a more significant profit.
Pawnshops
Pawnshops are a common choice for selling a range of assets, and jewelry is no different. However, pawning jewelry usually isn't a great option, not least from a financial perspective, even if the stores are conveniently located.
Pros: You can repurchase the diamonds if you change your mind.
Cons: The sale price will be significantly smaller.
Online Marketplaces
Selling diamonds via online selling platforms is another option. It allows you to sell without gaining certifications but could open you up to underselling the item. When using auctions, it is also common to get a far smaller price than you'd like.
Pros: Listing the product can be done without leaving the home.
Cons: Items could get lost. Buyers may request a refund.
Streamlining the Selling Process
Diamond sales should not be rushed unless you are desperate for a quick sale. Taking your time can translate to a far larger sale price, which can translate to hundreds of dollars more when selling a large jewelry collection.
Nevertheless, a streamlined process is highly preferential once you have found the right buyer.
By preparing your diamonds for sale, you will set yourself up for a faster and smoother sale without compromising on the price that you can expect to gain. Focus on the following factors, and you will have a far better shot at enjoying a better transaction.
Cleaning - by cleaning the diamond jewelry correctly, you will make it far easier for a buyer to see its true beauty and quality.
Inspections - sending your diamond to be inspected by an impartial party is advised.
Documentation - when you can present certified documents from the GIA or other relevant parties, the buyer can complete their assessments quickly.
Meanwhile, you will want to use a buyer that offers secure shipping or in-person transactions. Waiting days for the post office to deliver items is the last thing you need, not least because it'll make you worry about potential losses.
Selling Diamonds: How to Maximize Profit
When selling your diamonds, the harsh reality is that you will not fetch the same price that a new diamond would cost. Still, you deserve to gain the best possible price - especially if you actively buy and sell diamonds for profit.
Using this guide to diamond costs will give you an accurate insight into the highest figure you can expect. In most cases, anything above 60% of this is considered fair. As mentioned, optimal timing can be significant, so you may wish to wait until the relevant holiday approaches.
Meanwhile, speaking to several buyers could aid your cause. If nothing else, it'll help your negotiation strategy as you can actively tell Seller B what Seller A has offered (assuming Seller B offers less). This will then give Seller B the option to revise their price. Another positive step is working with a diamond buyer that will take both loose diamonds and jewelry.
Finally, if you have multiple pieces to sell, you should be prepared to sell different pieces to individual buyers if it means you'll get a better price. Thankfully, a team of fair and professional diamond buyers may be the best choice for all pieces.
Building Trust and Security
When looking to get the best price for your diamonds, it's imperative that you protect yourself against scams and fraudulent buyers. First and foremost, if the offer seems too good to be true, you should trust your gut instinct. After all, the diamond industry has had a long history of fraud.
There are plenty of red flags that you must try to avoid. This includes;
Offering a guaranteed price (rather than a conditional one) without analyzing the diamond,
Rushing you into making a sales decision,
Not providing complete documentation regarding the sale.
Those steps don't only protect you as a seller. They also protect the buyer. So, not offering them is a real cause for concern. All transactions must be conducted correctly and legally, while insurance should be in place to protect all parties.
Bigger isn't always better, but a reputable diamond buyer should have a solid track record. With multiple locations ranging from East Hanover to Warwick, American Gold & Diamond Buyers is the most professional and trustworthy solution in New Jersey.
Whether you choose American Gold & Diamond Buyers or not, though, it's vital that you find a service with physical locations and a registered company. Only buyers working with the GIA, AGS, and National Association of Jewelry Appraisers (NAJA) should be considered. While other firms may offer a legitimate service, it's not worth taking the risk.
Case Studies and Success Stories
The most expensive diamond ever sold fetched a colossal $71m. While your diamond collection is unlikely to achieve those astronomical figures, it's essential that you get the best sale price possible.
It is generally estimated that diamonds sell for 25-50% of the original purchase price, although many factors must be considered. For example, a diamond in the family for generations will only cost a few dollars. Likewise, any damage and inclusions could have a telling influence.
Here at American Gold & Diamond Buyers, we've helped hundreds of sellers like you. Here are just some of our reviews:
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