Do Diamonds have Resale Value?

What buyers care about is the intrinsic value of the ring that they are getting and if you are dealing with a professional, you can bet that they know what they are doing when they offer a price. A common complaint that I hear from readers who are selling their diamonds is that they do not have high resale value. I Have an Appraisal Document Stating a High Diamond Resale Value…

If the true value of the diamond ring is $21,200, why on earth would they sell it to you at a loss of $15,000? As mentioned earlier, unethical retailers use the appraisal value as a marketing tactic to sell their diamonds. The answer is both the jewelry store and the insurance (this contact form) company would benefit at the consumer’s expense. Think about it. Is the jeweler stupid? Who’s really benefitting from using an appraisal document with inflated valuation to market their products?

Understandably, most people want to get the highest possible price when selling an unwanted diamond ring. My advice is to buy a diamond for wearing and enjoyment but don’t have the expectation of getting your money back. In the best-case scenario, you will only be able to recover 20%-60% of what the diamond jewelry initially cost. The harsh reality is that you are going to take a significant loss in the event you need to sell your diamond jewelry. So, if you are harboring the notion of buying diamonds as a form of investment or reselling them for a profit, I hope you scrap these ideas.

Do Lab Created Diamonds Have Any Resale Value? In the retail market, a lab diamond typically costs 50% less than a natural diamond with similar specifications. However, when it comes to resale value, lab diamonds have very little to zero resale value compared to a natural diamond. In fact, you may notice that vendors that sell lab diamonds would not offer any trade-in or upgrade policies for lab created diamonds.

For some context, the retail price of a GIA certified diamond ring with F/VVS2/triple excellent cut quality would be around $15,000. It is a fallacy to believe that you are getting a “good deal” because the salesperson claims that you are paying a lot less than what the ring is worth. In the jewelry industry, appraisal documents usually list a value that is approximately 50-100% above the retail price of the ring.

How Much is a Diamond Worth? But what if you are just a regular guy on the street who’s trying to sell a diamond ring? How do you determine a fair resale value for your diamond ring? For people in the trade, we have access to cutting houses and contacts of wholesalers to get an idea of current diamond prices. Even so, getting diamond pricing correct is more of an art rather than a science. Broadly speaking, diamond prices are largely determined by the 4Cs: cut, color, clarity and carat weight.