How Diamonds Are Valued
Before determining a diamond’s resale value, you should have some idea of how such stones are priced.
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There are four main criteria that determine how much a diamond is worth: color, clarity, cut, and carat weight.
Clarity refers to how many visible flaws, also known as inclusions, are present in the stone.
This characteristic is graded on a scale, and one of the most widely used grading systems is that of the GIA (Gemological Institute of America).
Color is a quality characteristic that is graded depending on whether there are any yellow hues present in the diamond that make it look tinted as opposed to colorless.
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Color is also graded on a scale, and the more colorless a stone, the higher its grade.
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Cut refers to the shape of a diamond’s facets, their arrangement, as well as their number.
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For brilliant cuts such as the round cut, this characteristic is graded according to how the proportions of a certain diamond enhance its light return and brilliance.
In general, diamonds whose measurements allow them to capture and reflect more light, resulting in greater sparkle, are graded higher on cut.
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While there are well developed grading systems for the classic round cut, there aren’t such rigorous guidelines for other cuts.
Carat is simply another way to express the weight of a stone. A carat is a unit of measurement equal to 0.2 grams. Bigger diamonds are rarer, and this is why they have a higher value per carat compared with smaller ones.
Estimating Resale Prices for Diamonds
To determine the value of a diamond, first make sure you know how its color, clarity, and cut are graded, as well as how much it weighs.
Look for stones of similar carat weight and with the same color, clarity, and cut. The retail prices of such diamonds will give you an idea of how much your diamond is worth.
Retail prices are only part of the story, though, as they are not a reliable indicator of how much you could sell your diamond for.
Usually, you will get much less for your stone should you decide to resell it.
So, to figure out the resale value of your diamond, multiply the average retail price of similar stones by 20%-40% to get an estimate of the amount of money someone would pay to buy the stone.
The reason resale prices for diamonds are so low compared with retail prices is that jewelers buy diamonds in bulk, at wholesale prices, which are much lower.
The retail price you pay for a diamond at the store is higher because it includes overhead expenses, such as rent and personnel salaries.
There is no reason for a jeweler to pay the same price for your diamond when such a stone can be bought for much less from a diamond dealer.
Diamond Certificates: How Your Diamond’s Quality Is Graded
But how are you supposed to know the quality grades for the color, clarity, and cut of your diamond?
If your stone comes with a grading certificate, the grades for the diamond’s characteristics should be written there.
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It is highly recommended that you get your stone graded if it does not come with a certificate.
Not only will the document provide information that will help you determine the diamond’s value, but it will also be useful as proof of quality when you are trying to sell your stone.
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You can also get your diamond appraised by a certified appraiser who is also an expert gemologist.
An appraisal is simply a document that states how much the market value of an item is, in this case, a diamond.
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Although you most likely won’t be able to sell the stone at its market price, the appraisal can serve as proof of value that will allow you to argue for a higher price.
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If you decide to get an appraisal, the document will usually include grades for the stone’s clarity, color, and cut, as in a grading report.
You can get a diamond grading certificate instead, but appraisals are more useful when the item is not only a loose stone but an actual piece of jewelry that has diamonds, as determining the total value of such items is more complex and is best done by an expert.
Other Factors Affecting the Resale Value of Diamonds
In general, the actual price you will be able to get for your diamond will depend not only on its condition but also on where and how you sell the stone.
If you sell your diamond for cash, the value you will get will be lower than if you exchange the stone for another piece of jewelry at a store.
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Many jewelry shops will take your diamond and give you a certain amount of credit that can be used to make a purchase from them.
And many jewelers don’t buy diamonds (diamonds.backtoglamour.com) for cash, or if they do, they will usually pay you an amount lower than the store credit they would be willing to give you.
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Depending on whom you sell your diamond to, you might get more or less lucrative offers.
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As a rule, the further a buyer is from a retail point of sale, the less money you are likely to get.
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This means that it is unlikely that a wholesale diamond dealer would pay you more than a retail jeweler, although the latter will not necessarily pay more – you will have to ask around and try different potential buyers.
If you’ve decided that you want to sell your diamond, you can offer it to diamond brokers or to jewelers. Some diamond brokers also operate online.
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You can also offer your diamond jewelry for sale online – for example, you can send it to Worthy, which is a service that organizes online jewelry auctions, and they will sell your jewelry for you and send you the money when it is sold. You can also check out brick-and-mortar jewelry retailers in your area. In such a case, our advice is to collect several quotes and compare them because prices offered can vary wildly. Show them the diamond you want to sell to get a quote.
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