Investing in diamonds has been for a long time one of the best investments one can make. Historically proven, they provide the most favorable risk to benefit ratio. It is a tried and true method of holding value in small and secure packages. But what happens on the other side of the story, when we try to liquidate these assets? Whether it be a simple transactional process or a change of one’s heart, exchanging these precious stones for cash does happen. This is where things get a little different. If we go to a jewelry store and try to sell our diamonds, we would get only about 50 – 60% original value. It is also not uncommon to get 25-40% of the retail price. The reasoning behind such low prices is the fact that they are used. So, let us go over the basic information on how to sell our precious stones and get the most out of it in the process.
Before we get ahead of ourselves it is important to be realistic. Our heirloom diamond jewelry that has run in the family for generations is just a piece of rock to others. Sentimental value does not translate to more cash in return when selling. To set the record straight from the get-go, it is very rare to sell a secondhand piece of diamond for anything close to its original price. Even the appraised values are based on retail cost which includes profits for manufacturers, wholesalers, and retailers. The actual amount we could get depends on a lot of variables. Beauty, rarity, the origin of the original purchase, the materials involved in making it. Part only with the pieces that you truly can afford to be without.
Evaluating your piece
In order for us to determine the approximate value of our piece of stone, we need to look at it objectively. Informing ourselves of what other, similar items are worth on eBay auctions, for instance, can give us a big clue. The same can be achieved by looking at jewelry auctions involving pieces with similar characteristics. Adding a discount on top of that is a reasonable idea since the buyer will want to turn a profit. If you do not feel comfortable making these assumptions yourself you can always find a qualified appraiser. But usually, it is not necessary unless you are selling some pretty valuable pieces of rock.
The alternative to a trade
A small intermezzo, a thing to consider is why not trading-in for a better deal? A trade-in can prove to be a beneficial option to a cash sale. Considering all the hidden costs of going through with the transaction it just might start to seem reasonable. If we are offered a fifth of the original price for our diamond, surely, we can find a better deal somewhere else. Jewelers can also offer us an allowance that we can use to purchase any new piece from the store. With some careful calculating, we can come up with a much better outcome for us.
Diamonds can hold within them an emotional bond. Whether it is from our great-grandmother or someone even closer to us, diamonds have always been associated with love and passion. This can make them much harder to let go than any other type of jewelry when the time comes. As previously stated, the emotional attachment to them can often overinflate the true value of the diamond. We will perceive it as much more valuable than it objectively is. And our emotional attachment means nothing to the buyer, something to have in mind. So, if we are ready to let go of a symbol that represents something or someone of worth to us, we are ready to sell the diamond.
Learning about characteristics
In order for us to make an educated decision, we need to educate ourselves on the nature of our diamonds. There are several factors in play and a favorable combination of them will bring us the biggest return on investment. Starting at the four C’s (clarity, color, cut and carat) we begin our road to understanding what we own. Clarity is determined by the absence of imperfections (also known as inclusions) within the diamond, such as foreign minerals. A note on this, some imperfections might render the piece unique, just like fingerprints in humans, increasing its value. Color is also one of the main characteristics of a diamond ranging in the entire color spectrum. Yes, some are rarer than others which also determines the value of a piece. Quality of the diamond is determined by the third C, the cut. It determines the reflection of light that passes through it. An optimal cut has the perfect angle and symmetry to the edges, combined with the polish it influences value greatly. The carat is the unit of measuring weight which is equivalent to 200 milligrams. Again, the more the better. Combining all of these aspects favorably will maximize our profit when selling. Taking a look at a Diamond portfolio will give us all the necessary information in order to make the right decision.
If all else fails we can always sell our diamonds for scrap. Not really an optimistic option, but if you need a quick way to make some cash it is there. But until you decide to make that move, be sure to go over the points we have covered, in detail. Other than material properties, for most of us, diamonds hold great historical and emotional significance. And that can make them very hard to part with. On the other side, diamonds are a historically proven low-risk investment that holds their value, hell or high water. From this grounded perspective, they are assets just like real estate and can be bought, traded or sold. They make truly for a remarkable investment and if need be can easily be liquidated, for whatever reason. With these pointers, we can make sure to get the most out of it for us, and our loved ones.