You will not get what you have paid for a diamond, not even an amount close to the purchase price, when you sell it. What you may perceive as a sentimental item may not be so for others. As far as the potential buyer is concerned, your ring is a used item. If you understand that and still wish to sell it, keep reading.
Expect Loss in Diamond Value
Unless you have a very remarkable or unusual diamond ring, the jewelry resale market is weak. An engagement ring with diamond is no savvy investment product, but it is an emotional buy.
You are perhaps thinking: “Why would not I be able to earn back every single penny I have paid for this flawless piece. The truth is that the value of even brand new rings, without flaws and quality and no other big risks to sell, drop considerably from the actual purchase price. How can that be the case?
Why you Will Still Not Be Able to Sell your Diamond at Close to Retail Price
- Retailers Want To Profit From The Sale
Why would they purchase from common folks when they are able to purchase diamonds that are new at wholesale prices? Jewelry retailers can only give you just enough money and not anything more so that they could just make their typical profit margin (and they have workers to pay for and a store to maintain). The best-case scenario is that, but even in that case, retailers would buy from wholesalers with whom they already have a relationship.
- The End Consumer Wants A Bargain
A commoner would not purchase a secondhand diamond ring at retail price when he or she can purchase a new product at the same rate. Besides, new products usually come with warranty, return and upgrade options. For instance, when they buy from a reputable jeweler like Beverly, they will have the option to return the product. If they have some minor Beverly Diamonds complaints or when the product fails to satisfy them 100% and meet this jeweler’s criteria, they may be able to return that item. Buying from a retailer versus another user has that benefit and more such advantages.
A potential buyer would only purchase a used diamond when he or she is getting a good deal. You are most likely to lose 30% of the price you originally paid for your diamond ring when you sell it. And that is being optimistic. When you are selling to a jewelry retailer, you may get back just 50% of that value.
If you understand the above and wish to sell it anyways, then read on for more details.
How to Find a Buyer
We know diamond jewelry lose a considerable chunk of their value on purchase, so it may be tricky to find the right buyer. Depending on the platform you opt to sell it, you might just be able to get the bulk of its value.
Selling to a Jewelry Retailer
In the event you bought the ring from a reputable jeweler, your best bet is perhaps to sell it back to that company. If you choose to go down this route, you have some options including the ones mentioned below.
- Buy Back: Some jewelers have a policy in which they would buy the product back at an agreed-on percentage of what customers have paid for it.
- Trade Up: Some jewelers will only receive something from you and will let you buy something else that is similar to what you are offering them but for more money. The good thing with this is that you only need to pay the additional money you need to pay for that more expensive item. However, in another sense, you will not get cash through this sale.
Cosigning with a Retailer in your Area
Cosigning your diamond piece with a local jewelry retailer is another option you have. This means the retailer will display your diamond ring in their shop and will try selling it for you. In the case someone buys it from there, the retailer will take a portion of the price as commission.
This option transfers the burden of selling the piece to that retailer, but you may need to wait for a while for the sale to happen. Choose a jeweler who gets plenty of customers and who you feel is comfortable to work with.
A Pawn Shop
In the case you are in a hurry to sell it, a pawn store will typically give you liquid cash for the stone, but look forward to the biggest price drop. Pawn stores are bound to sell and buy for low prices, and they have to make some profit from the sale. Usually, pawn store owners are not all that knowledgeable about diamond, so the offer might just be even lower.
Remember: The Jewelry Retail Market Is Not Strong
Your most lucrative option is going to be to upgrade your ring by trading it for another piece online. Much like a brand new vehicle, the value of a ring with diamond will not be the same years after you buy it. With some amount of research on this matter, you can still guide yourself in the correct path to make the sale work.