You’ll face some challenges when you are ready to sell your diamond. First, you must determine where to go and the fair market value.
Local jewelers and pawn shops might be convenient, but you’ll see a lower price on your investment. While you can search for diamond buyers, it will usually take more work than it’s worth. Therefore, it’s often better to sell online, but you still have to choose a trustworthy retailer. Learn more about the process of selling below!
What Will Happen When Trying to Sell a Diamond Ring?
Unfortunately, most people will buy a diamond ring through physical jewelry stores. Let’s assume you did this and used a small independent jeweler, which wasn’t part of a chain. They only sold GIA-certified diamonds.
In the case above, you’ll get the lowest (and best) profit percentage, about 25 percent. However, if you choose a large-chain jeweler, have EGL-certified diamonds, or get high-end products, you will typically see a higher price.
How Much Money Will You Get from a Diamond Engagement Ring?
It’s time to get technical for a minute. Assume that the diamond ring you bought costs the jewelry store about $100. With a percentage profit of 25 percent, you paid $125. Let’s say that the diamond prices have increased 10 percent since you purchased the diamond.
At this point, and only in theory, you will lose about 12 percent, which is the price you paid minus the price you got for the stone.
However, the painful realization here for people who wish to sell diamonds is that they don’t know where to go to sell the diamond for its current market price. Why? There isn’t such a location!
Where to Sell Antique Diamond Rings (and Others)
If you wish to sell your diamond ring quickly, there are a few places you can go, such as diamond dealers, stores, and pawn shops. Let’s look at them closely:
You walk into a jewelry store similar to the one you used when you purchased the diamond. It might have paid $100 for the stone. However, it probably got it on consignment, which means the store borrowed it from the wholesaler and is out of money.
The actual cost of your diamond was much less than what was put down on paper.
If they did buy the diamond, they got it very cheaply because they likely worked with diamond buyers. The store must be able to turn a profit. Therefore, if it didn’t borrow one, it would have to justify the cost by getting it for a much lower price.
Likewise, relationships between buyers and suppliers are crucial in this industry.
If a local jeweler used the capital they have to buy from you instead of a supplier, they must get it cheaply to justify the decision.
Most people in the business know that private sellers will often sell their wedding rings well below the market value or price.
Overall, it’s unlikely a jewelry store would do such a thing. Unless the diamond on offer is very rare, there’s no reason for the jeweler to buy from you at full price when they could get an identical one at the same price from a wholesaler that offers better payment options.
You can try to find ring buyers for what you offer. Craigslist has many risks involved. You might find a few diamond buyers if you choose eBay and other selling sites like this. However, they aren’t motivated to pay you what they could spend at a jewelry store that offers beautiful packaging, warranties, cleanings, and more.
If you go to a pawn shop, you will likely be hit worse. Its selling prices are often below the market anyway, and it typically has tons of diamond jewelry it’s trying to offload. Though they are diamond buyers, they want to get the goods for as little as possible!
Advantages of Selling Engagement Rings Online
Here are the benefits of selling online:
You can see better value when you buy online. These stores often have lower markups because there are fewer overhead costs. Therefore, you could save money.
Upgrades and Returns
Most online vendors have excellent policies for returns and upgrades. For example, you might get a full refund within the first 30 days. Overall, buying online makes it easier to sell when you’re ready. You have a lower cost basis, so it’s easier to recoup money if you must sell it on the open market.
What’s the Market Price of a Diamond?
There’s no firm definition of market price for a diamond. You’ve been reading along so far and can tell there are differences between cash, consignment, and more.
Call prices are another consideration. These are the prices the store will pay when they contact the dealer with a particular request from a customer ready to buy. Business prices mean a lower price is negotiated when multiple diamonds are purchased together.
Risks and Varying Market Price Options
In reality, the diamond has various “market prices.” The lowest will be the cash price, which the store will pay you immediately to get the diamond without someone requesting that particular diamond shape or style.
The reason for such a low cash price is that it requires the store to output capital in the hopes of a sale in the future. It takes the risk and must be rewarded with a higher profit potential.
If you have a diamond with an unpopular cut or inclusions, you will take a hit when you try to sell it.
Can You Sell the Engagement Ring Setting?
Yes, selling your diamond or engagement ring and the setting is possible. Most online stores will do this for you.
Be aware that the setting is only worth the scrap price for gold. If you paid for a unique one, it is melted into scrap gold and remade. Most people prefer a custom design, so they won’t necessarily want to pay for yours.
Selling the setting for scrap gold will come at a financial loss. However, you can recuperate some of that. Most pawn shops and jewelry stores pay about 50 cents on the dollar of the scrap gold’s value. For example, if its value is $1,000, you would get $500 for the setting.
Tips for Selling Your Engagement Ring
Are you ready to sell? If you have realistic expectations about the price you’ll get, diamond ring reselling isn’t a hard process. Here are a few tips to help you deal with it all:
Avoid Local Jewelry Stores
You probably won’t get a fair price for the diamond ring from your local jewelry store. While you’ll get more here than at a pawn shop, the jeweler will generally have other options and won’t want to buy from you.
Avoid Pawn Shops
You will not get a fair price for the diamond ring at any pawn shop. Instead, these diamond buyers focus on making cheap offers and will only give you a fraction of the value.
Getting the full amount you paid for the ring you wish to sell is impossible. Many people think that if the ring is in excellent condition, it will be worth more, but that isn’t how life works. Make sure you’re realistic about the prices from the start. Prepare yourself to sell at a loss to avoid heartbreak later.
Be Prepared to Wait for
Selling on Craigslist or eBay might be possible, and you could see a higher price than if you sold it elsewhere. Still, pre-owned rings won’t sell quickly if they’re close to retail prices. Therefore, you might have to wait an extended time before finding a buyer.
Consider Selling Online
Most online companies won’t offer the full original price you paid for the ring. However, they will give you the highest price compared to a pawn shop or a local jeweler.
Resale Value for Diamond Engagement Rings
The resale value of your diamond will often vary significantly based on its cut quality, color, carat weight, and other factors.
While all diamonds will have resale value, it’s generally less than what you paid when it was new. You’ll find many reasons for this, such as the retail markup and difficulty reselling jewelry.
Typically, a diamond ring or any diamond jewelry will resell for 20 to 60 percent of the price you paid when you originally purchased it.
Conclusion – How to Sell Your Engagement Ring (or Any Others)
If you wish to sell your diamond ring and get the most money, the best thing you can do is go online. Cash prices from a store are lower because the jeweler will likely see it sitting on the shelf for many years.
Pawn shops are also a no-go because the proprietors want to spend as little as possible to resell at higher prices later. If you’d go into one, you’d likely see hundreds of pieces waiting to be bought.
Places like Abercrombie Jewelry are an excellent option when you want to sell a diamond ring. You’ll get an appraisal from a professional, whether you’re selling precious metals or gemstones. You can schedule your appointment today or call (512) 886-5937 to get started.