Did your relationship turn bad?
We could talk about the eternal values that diamonds represent and symbolize all day long. However, we also have to admit that even diamonds may not be forever.
Though most of us associate them with getting engaged and as jewelry that will be passed down in family traditions, there are situations where you would want to sell your diamond.
For example, there might be scenarios where your financial status forces you to do that. Or in the unfortunate event that a relationship had somehow turned sour, getting rid of items that would revoke past emotions might be at the top of your priority list.
Now, buying a piece of jewelry is easy. You can simply walk into any jewelry store and make a purchase on the spot. The opposite holds true when you are trying to sell it. Let’s look at some important tips you can use to help you sell off unwanted diamond jewelry.
Diamonds are serious business. If you are selling a diamond, I can guarantee that the other party will demand to see proof and authentication of the diamond’s qualities from your side. The best and easiest way to establish a basic trust is to get it graded by an authoritative gemological lab, like the GIA – Gemological Institute of America.
The grading certificate provided by such institutions usually contains information about the precise weight, cut quality, clarity and color of your stone. Since the grading is performed by a neutral 3rd party, it eliminates any bias opinions from both parties.
Also, you might want to consider getting an evaluation performed by a local appraiser too. Once your diamond is appraised, it is easier for you to understand the worth of the jewelry in the current market conditions.
This helps you to propose and analyze deals with a better understanding of value. For a more accurate estimate of the diamond’s value, you could also compare it against a price list called the Rapaport report which jewelers use to benchmark prices.
In short, the Rapaport pricing is the typical “high cash asking value” which diamond buyers and sellers use as a guideline when making trades. Some retailers also use this list as a reference to price their goods in retail stores.
Since Rap prices are calculated based on current market conditions for a particular type and grade of diamond, the ratio between the Rapaport value and the selling price of your diamond could give you an idea on the efficiency of the deal.
Besides buying from distributors, some jewelers may also take in used jewelry from individuals directly. When doing business with these jewelers, you have to go prepared with knowledge of your diamond’s appraisal value and preferably, a GIA certificate.
You see, these jewelers are businessmen and just like you, they want to get the most out of their deals. Very often, they will only offer to buy your jewelry at a value below dump price.
Now, dump price is roughly 40% of any diamond’s Rapaport value. In my opinion, this is the value you should never go below when trying to sell to a jeweler. In my personal experience, most jewelers tend to start at low prices and slowly move higher as negotiation takes place. To start off, they would probably propose a price that’s below dump price to undercut your value and maximize their profits.
Like in any other negotiations, the smart thing to do is never agree to the initial offer. It would require some negotiation skills on your part to settle on a price which works for both parties. And the truth is, if you sold them your diamond under dump value, they could easily re-sell the stone at dump value overnight.
When a jeweler proposes a price significantly lower than 40% of the Rapaport value, stay confident and keep bargaining until he agrees to a price that is closer to 60%-70% of the listed price.
Turn your old jewelry into cash.
If you are willing to spend some time or like doing DIY deals, you might want to consider sourcing for potential buyers yourself. In general, there are a handful of ways to selling different possessions, and most of these methods can be applied to gemstones and generic jewelry as well.
You might want to make use of well-known forums such as Craigslist or probably contact friends and acquaintances to see if they are interested. Also, you could also place classified ads in your local papers or try listing the item on eBay.
Do take note that your chances of selling and finding a potential buyer will be much lower (and more risky) since we are talking about a substantially huge amount of money being involved here.
Selling diamonds on your own is usually harder than collaborating with a jeweler because of trust issues. Think about it, would you buy from a stranger from an online listing you found or would you be more open to buying from a store?
If you want to save the hassle when selling unwanted jewelry, you may want to consider placing them on a consignment basis with a local jeweler. This means that a jeweler will place your item within their inventory and attempt to sell off your jewelry on your behalf.
If a successful sale happens, the jeweler takes a cut off from the sale. With consignment, how fast the diamond gets sold really depends on 2 factors: how much day to day traffic the store gets and how much demand there is for your specific type of jewelry.
While consigning your jewelry will cost you some service fees, using this method saves you from potential headaches and security risks. You see, unless you have the sales experience to filter out potential buyers on Craigslist and eBay, it’s easier to leverage on the reputation of a brick and mortar shop. The key to success via this route is to find a reliable jeweler to partner with.
Besides, consigning a piece of jewelry often yields a better return and the jeweler doesn’t get paid until he/she sells your diamond. This is truly a win-win situation for every party involved especially if you have a diamond of decent quality.
If you are looking for an upgrade, you can actually trade in your old jewelry and get a credit towards a new purchase at James Allen. Note that there are some terms and conditions which may apply depending on the type of jewelry you have. For example, JA does not take in worn rings or stones without grading reports.
For diamonds above 0.50 carats, they would be able to provide you a free quote on your diamond if it has a GIA or AGS certificate. If you want to consider this option, check in with their live support for more details and see what they say.
In my opinion, WP diamonds is one of the easiest places to sell a diamond where they run their business in a commission-free model. The entire process pretty simple if you are looking to sell your diamond ring.
First, you need to fill up a form and include information about the specification of the jewelry you are selling and you get an estimated valuation of the piece. If you decide to accept the offer, WP Diamond will give you the shipping instructions to ship your jewelry securely (with full insurance) and you will receive your payment via bank transfer.
In the event of a reversal, the package is also shipped securely back to you. So, there’s no risk at all. If you happen to stay near their office, there is also an alternative to schedule an appointment to bring in the jewelry you want to sell.