Do Diamond Rings Hold Their Value Over Time? What You Should Know

Do Diamond Rings Hold Their Value Over Time? What You Should Know

Most people don’t think much about the cost-benefit of their purchases until after the deal is done. However, diamonds are often seen as an excellent investment. Still, diamonds have a poor resale value, so you might not get as much back as you think if you sell your diamond engagement ring.

How much is a diamond worth? This question isn’t easy to answer because many factors influence the price. It loses about half its value once you walk out the door with the piece. Let’s learn more!

four prong diamond ring inside white velvet ring box

How Jewelers Determine Used Diamond Prices

The jewelry industry has access to distributors and cutting companies to help everyone determine the rate of diamonds. However, getting a fair price is more like an art.

If you’re an ordinary person who wants to sell a diamond to the public, you must consider the factors determining the resale value of your diamond engagement rings. The 4Cs will ultimately determine the price.

To determine the resale value of the diamond, you can make different price comparisons of the present ring against others sold now on the market. However, the finer points will be crucial.

For example, a GIA-certified diamond must be evaluated against other similar products. The cut precision, type of inclusions, and fluorescence affect the diamond’s worth.

You should multiply the average retail price of a similar stone by 30 to 75 percent to find the ballpark estimate of your resale value. Let’s say you bought a Harry Winston or Cartier ring. The loss you’ll take in the secondary market is higher than if you purchased it online from a shop with a smaller markup.

Why? It happens because the retail price incorporates the manufacturer’s markups and the business cost. People who buy diamond rings don’t care about shipping, insurance, payroll, or the rest. They focus on the intrinsic value of the ring. An expert will often provide a fair price.

Resale Value of Diamonds

Diamond jewelry does have resale value.

Unlike gold, your loose diamonds and diamond jewelry have a stable market value. Therefore, the market will determine the availability and cost of the gems, which affects the resale value.

Will Diamonds Increase in Value Over Time?

Overall, if a diamond is scarce or hard to find, it will likely be appreciated because of demand and little supply. However, keeping your diamond ring in excellent condition would be best to ensure it appreciates in worth.

Factors Impacting the Resale Value of a Diamond Ring

Here are the factors that might impact the resale value of your diamonds:

Grading Certificates

When buying diamond jewellery, it’s wise to go with a proprietor you trust. Ask for a grading certificate from the IGI, DGLA, SGL, or GIA when buying either assets or loose diamonds. Diamonds must be sold with certificates that prove their origin, cut, carat weight, color, clarity, and form and are crucial for the resale price later.

GIA diamond certificate

The 4Cs

The 4Cs for diamond jewelry are carat, color, clarity, and cut. Most people understand these concepts if they have a diamond ring. Marketability will improve for a diamond based on its carat weight and clarity. You can learn about these things through a grading certificate.

Diamond Procurement

Where you bought the diamond is also important. Big brands will price their products to cover the marketing and reputation, so they will often have a lower resale value. You can lose between 25 and 50 percent of your original purchase price.

Diamond Resale Market

Choosing the right time and market to sell your diamond engagement ring is as important as picking the best diamond for resale value. There are various venues where people can resell diamonds, such as pawn shops, auction sites, and jewelry stores.

The value you get when reselling diamond jewelry is determined by the market demand and timing. Therefore, it’s wise to know the lowest and highest prices you might get for your pre-owned diamonds.

What Influences Prices for Antique Diamond Rings?

Many people have held onto their diamond engagement rings for many years. Whether they’re still married or not, they feel they might have an item worth a lot of money. It could happen, but your children or grandchildren will likely get the payout.

Here are the five factors that might affect the price:

Original Condition

Rings are more valuable when they’re in their original condition. If you’ve fixed a broken band or replaced a stone, it will be worth a lot less. You might want to visit a jeweler to help you determine if it’s been altered before trying to sell it.

Hallmark

When shopping for rings, make sure to check for hallmarks. These small stamps are found inside the band and offer information about the ring, including the period, type of metal used, and more.

Antique rings might not have them. If they do, you should always research their meanings.

Antique 1.73 Carat Old European Cut Diamond Engagement Ring

Period

The price of a diamond ring is determined primarily by demand. Some periods are more popular than others. For example, the Edwardian and Art Deco periods have the highest values.

Filigree

The ring’s filigree refers to the designs on the band. This is important because it offers individuality and might tell you how that ring was made.

When you see imperfections or uneven designs, indicate that they were hand-carved. This often makes the ring more valuable because it takes longer to create.

Cut Quality

The round brilliant cut is the most popular option for wedding rings today. However, it didn’t exist in the past. Typically, the mine cut is the oldest. These diamonds were cut right at the mine once they were dug up. Therefore, they had a flat surface toward the stone’s bottom, making it appear that there was a hole in the diamond itself.

You also have the European cut, which is quite similar to the round brilliant. However, there’s less brilliance. Some people like the style, which will add value.

Why Is the Diamond Resale Value Low?

The value doubles immediately once you have bought a diamond ring from the jeweler. These professionals buy in large quantities to lock in lower wholesale prices for the diamonds. People have more variety and reduced costs, but there are markups to consider.

The diamond is complete here because the jeweler bought it from a manufacturer after being graded on the 4Cs. Likewise, the GIA evaluated and validated the piece and recorded it.

A wholesaler sells the diamonds at a price that focuses on each cost associated with production and polishing. Ultimately, the retail jeweler will double that initial cost. The related fees are deducted when the diamond has been paid in full. Therefore, the mounting and evaluation of the stone are necessary.

Here is a look at why the diamond resale value is so low:

Value of the Purchase

Most consumer goods receive a markup at the store. Diamond engagement rings are hit harder.

A jeweler buys a diamond for $1,000 from a wholesaler. They might mark it up to about $2,000 to protect themselves from the slow wait for someone to come along and purchase it. That markup helps them pay their bills and receive a modest profit.

Overall, a jeweler can get products at a lower price from the manufacturer, so they don’t want to buy yours.

four prong diamond ring inside blue velvet ring box

Diamond Value at Resale

Diamonds often lose 25 to 50 percent of their actual worth at resale because of the decline in diamond prices, the markup on the ring you paid, and market fluctuations. Likewise, insurance is taken out of that price.

Appraisal Value

If you need a replacement, the jeweler might give you an appraisal based on the diamond ring’s value. However, it would be best if you didn’t assume that you saved money because of that. The appraisal value will likely cause you to pay a higher insurance premium.

Tips for Selling a Diamond Engagement Ring and Where to Go

If you wish to sell your diamond engagement ring or any other diamond product, you’ll likely spend a lot of time researching your options. Here are a few tips to help you:

  • Know that you will take a loss when selling your diamond. Though you might think it’s worth millions of dollars, no one else believes this. You must come to terms with the reality of everything to ensure you settle for a fair price.
  • Avoid pawn shops whenever possible. You might consider using one if you don’t care about the diamond and need money quickly. Otherwise, you’ll lose money and not get close to the piece’s value.
  • A local jewelry store might seem like a good bet, but they aren’t if you plan to resell the diamond. Jewelers can usually buy new diamonds at wholesale prices. Therefore, they don’t have to buy your old one, even if you give them a great deal.
  • Online marketplaces, including eBay, help you sell your diamond privately. However, you may wait for a long time before finding a buyer. Old diamonds aren’t in high demand, so you won’t get retail pricing here, especially if you have lab diamonds. Natural diamonds might fetch a slightly higher price, though.
  • The best option might be to use an online jewelry broker. These companies are upfront and reputable. Plus, they’ll pay more than other buyers.
four prong diamond ring covered with red textile

Online brokers are a reliable option for selling diamonds in your jewelry box. They’re pretty easy to use, considerate, and helpful. However, they will also lead you to a qualified buyer for the diamond ring.

If you’re scared to venture into the resale market, online brokers and jewelry stores can be helpful. Abercrombie Jewelry can help you sell your diamond. While you might not get total retail prices, the brand will consider your sentimental value.

Buying diamonds doesn’t have to be a poor investment, but you must realize that you probably won’t see a payout for many decades. Be prepared to wait a while, don’t get in a hurry, and consider scheduling an appointment with Abercrombie Jewelry today!

FAQs about Diamond Ring Values

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