Every diamond is unique, but the process of valuing a diamond remains the same. Understanding this process is important both when looking to sell and when looking to buy diamonds.
How is a diamond valued?
Valuing a diamond is a nuanced and complex process that requires the expertise of a trained gemologist. Beginning with the 4 C’s (carat weight, cut, color, clarity grade), a gemologist will establish your diamond’s exact grading’s by weighing and examining the stone under magnification.
Once the diamond’s grades have been established, a gemologist will then factor in the current secondhand market. This involves looking at the supply and demand for similar diamonds and, more generally, at how diamond prices in the industry are trending.
What role does a diamond certificate play?
Diamonds certificates issued by a certified laboratory authenticate a stone and ensure that you have all the correct and relevant information needed to establish a price. The information detailed will typically include the 4 C’s as well as the diamond’s proportions and measurements, all of which will determine the stone’s value. Some diamond buyers will pay a premium for GIA certified diamonds.
Why is my diamond worth so much less on the secondhand market?
Unfortunately, the vast majority of diamonds are not investments. It is a common misconception that can come as a bit of a shock when it comes to selling your stone.
You will typically receive 20%-50% of retail price. The reason being is that jewelry stores have high markups (up to 100%). This is due to the rate at which jewelers can sell their products. While clothing stores mark up their products too, they turn their stock around much faster. Jewelers need these large markups to stay in business because of the slow nature of diamond sales. Jewelers also have to cover their expenses (brick and mortar store, staff, marketing costs etc.). Additionally, the diamond market is volatile and diamond prices may have dropped since the original purchase.
When will my diamond be worth the most?
The diamond market is constantly fluctuating. Unfortunately, not even diamond experts have a way to predict when it will rise and fall.
If you are in a hurry to sell, then waiting on the market is not a luxury you have. Your best option is to find a reputable diamond buyer who will strive for the best price possible in the current market. The quickest option will always be to sell to an online diamond buyer who can give you a firm offer and have money in your account with 48 hours.
Are diamonds an investment?
No. There are, of course, exceptions to this rule, antique pieces of jewelry or very rare diamonds, but most diamond items do not fall under this category. Much like when you buy a car, it depreciates substantially in value the minute you drive it off the lot. A realistic return is 20%-50% of retail price.
What are some tips for the best diamond returns?
Choosing the right diamond buyer will help you get the best price for your diamond. Finding a company that has GIA trained gemologists and diamond experts to value their stones ensures that you will be given a fair price. You should also make sure that the company has a great reputation and business standing, ideally with an A+ rating with the BBB. The more legitimate the company, the more trustworthy their offer will be.