What You Need to Know When Selling Loose Diamonds or Diamond Jewellery
When looking to sell loose diamonds or diamond jewellery it is important to educate yourself on the diamond valuation process. Understanding how the diamond market functions and its impact on how diamond dealers value your diamond on a day to day basis can also be very valuable knowledge. With that in mind, this article hopes to place you in a better position when selling loose diamonds or diamond jewellery.
Below are some tips to keep in mind when selling loose diamonds or diamond jewellery:
1. Know your diamond. Whether you are selling loose diamonds or a piece of diamond jewellery, get acquainted with your diamond and be ready to answer any questions that your buyer might have. The potential buyer may ask you whether or not the diamond comes with a diamond certificate or about other details such as diamond colour, diamond cut, diamond shape, diamond carat weight, and more. If you do have diamond certification on hand, familiarize yourself with the diamond 4C standard (cut, clarity, carat and colour). Having knowledge about the characteristics of your diamond will help you determine a proper valuation and ideal selling price for your diamond.
2. Learn about the market. The Diamond Prices Index (DPI) takes an accounting of the average retail price per caret of loose diamonds from online jewellers. You can search according to your diamond's characteristics what similar diamonds are being sold for on the market. This is not a substitute for an appraisal or a certificate, but it is still generally helpful information. The DPI can also inform you of the general trend of diamond price changes. Attempting to forecast future prices is virtually impossible, but by following news in the market (I.e. discoveries of new mines, slowing of production in existing mines, trends in the commodities markets, etc.), you can view diamonds like many other investment classes- extremely complicated, but worth attempting to comprehend.
3. Consider adding to or subtracting jewellery from your diamond. While diamonds, gold and other precious materials have commodity-like features, jewellery is less so. An antique piece, or attractive design might add value to your diamond and you can get the jewellery piece itself separately appraised to come up with a new valuation number. However, the value of the adjoined jewellery piece might also be disregarded by the jeweller and be viewed as "scrap gold"- only worth its value in weight. In that case, you would be better off separating the diamond from the jewellery piece and saving the piece for another stone.
4. Get the diamond appraised by a gemmologist with a good reputation and qualifications. If you choose to sell your diamonds to a jewellery store, first get an appraisal and certification from a gem laboratory like EGL Asia. The gem laboratory will conduct an appraisal by assessing the four Cs. Getting a diamond certification is actually good first step after buying a diamond, especially if the diamond doesn't have an existing certificate. This helps protect against mistakenly buying or selling synthetic diamonds. As a buyer you would lose money, and as a seller you could put yourself in danger of legal recourse.
5. Approach a credible diamond buyer. A good sign of a credible diamond buyer is that they have memberships to organizations that provide up-to-date information on current values in the diamond market. Having a basic familiarity with these organizations and their current market research will also aid your efforts to secure a reasonable value for your diamond or diamond jewellery. Remember that jewellers need to make a profit as well, but as the seller, your objective is to get right at the top of the jeweller's willingness to pay. Avoid pawn shops or running newspaper ads. Pawnbrokers typically offer far below market value and are usually unqualified to evaluate diamond values.
6. Be vigilant. There are instances of people having fallen prey to deceitful jewellers who pulled a switch on their diamond after they looked away for only a short period of time. Also avoid selling to or even negotiating with jewellers that give you a "low-ball" offer that is far below the market-appraised value. Accounting for the jeweller's transaction costs is understandable but jewellers that run respectable operations won't attempt to swindle their customers.
7. Consider the risks and benefits of selling by mail or online. Many diamond buyers believe that buying online will afford them better prices due to the lack of a middleman's profit. As a seller, you may be able to recoup some of that money. However, some diamonds that are sold online can be obtained at lower prices because they are illegal back-market blood diamonds, which are not certified by the Kimberly Process. Hence, online diamond buyers might have unrealistically low expectations about what your diamond should be sold for. If you do wish to try this method, getting a diamond certification is very important. Having a certification, including pictures of your diamond and notes about its characteristics can reassure your buyer about buying a diamond sight unseen and also protect you if the buyer decides to return it and sends you a "substitute diamond". Insure all diamond shipments to the full price of the diamond and with a delivery confirmation required with the package.
These are just some of the tips that you can apply as you educate yourself on selling loose diamonds or diamond jewellery. Most people will sell a piece or more of precious jewellery during their lifetimes and it is always best to be knowledgeable and well-prepared.