How to Sell A Diamond

Make the Decision to Sell A Diamond

First of all, you have to decide to sell. The decision to sell a diamond may be easy or it may be a difficult one, perhaps due to divorce or financial difficulty. Or, the sale of your diamond may simply be an investment decision. You might want to sell a diamond in order to upgrade the stone in a piece of jewelry. There are as many different reasons for selling as there are sellers!

If your diamond has sentimental value or is an heirloom or estate piece, it may be very hard to part with it. On the other hand, if you are divorced it may be a relief to sell that ill-fated diamond ring! Either way, prepare yourself psychologically for selling the diamond because it won’t be easy. You must be mentally ready for the selling process.

What is My Diamond Worth? Getting an Approximate Value

You should begin by having it appraised so you know the replacement value of the piece. (More information about having a diamond appraised.)

Usually, your selling price will be less than the appraised price, in some instances much, much less. To be blunt, you may be shocked by how low the offers are compared to what you may have originally paid for the diamond. Use the independent appraisal amount as a reference point, but do not expect to receive that much for your diamond when you sell.

In preparing to sell your diamond, you may want to check how retail jewelry stores are pricing similar stones or jewelry. As a private seller, you will not be able to price your stone as high as a retail jeweler but this can be good information to know. Expect to receive substantially less than what you paid for it when you sell.

Be Prepared: Facts Buyers Want to Know Details

The potential buyer will want information about the stone. They may ask for data such the laboratory report or grading report, the independent appraisal, and the original jeweler’s appraisal or receipt. They will want to know the overall shape (for example, is it a round brilliant, a marquise, a pear shape?), the color, the clarity and exact carat weight. (Your written appraisal or certificate should include this.) Knowledgeable buyers will also evaluate the proportions and quality of the cut. Always provide a copy of the lab report or grading report or certificate for the diamond if you have it.

Who Buys Diamonds?

There are many options for selling a diamond. You may consider selling to private individuals, on the internet, at auction, or to a pawn shop. Another option is to offer it to a jeweler or jewelry store or to a diamond broker or trader. You might also be able to sell it on consignment or exchange it as part of the purchase of a better diamond.

• Selling to Private Individuals: You can sell in person to an individual you already know, such as a friend or relative. You can advertise in the local newspaper and sell directly to a private party that way.

• Selling Diamond Jewelry On the Internet: You can advertise on the Internet and sell through classifieds or on Craigslist, or through an on-line auction such as eBay.

• Selling Your Diamond to the Highest Bidder at Auction: You can sell a diamond at auction through an auction house. If you do this, be sure to set a reserve price or minimum acceptable bid. This type of sale will cost you a commission paid to the auctioneer. Commissions or fees will generally be due whether or not the diamond sells.

• Pawning a Diamond – Lowball Pricing: You can also work with a pawnshop or pawn broker. Get several offers so you can compare. In this instance, the price offered you will likely be very low because these businesses plan to sell the stone quickly at a relatively low retail price.

• Sell to a Jeweler, Diamond Broker or Gem Dealer: You may prefer to sell your diamond jewelry to a retail jewelry store, diamond broker or dealer for immediate payment. Most will offer you less than the wholesale price which is far less than the appraised value. Contact several stores, brokers and dealers to get a sense of what cash price they are willing to pay. The store that originally sold you the piece might make the best cash offer, or it might not. Consider selling to a local store as well as to out of town jewelers. Instead of buying the diamond from you, some may be willing to take the stone on consignment or to trade it.

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