Selling a diamond is not always done under the best of circumstances unless one is a dealer or one who buys and sells diamonds as a hobby or as a business.
What is the Diamond Price
When you come to sell your diamond(s) the first thing you will discover is that you will not get the price you expected. Most diamonds are purchased at retail value. This means there has been a mark up by the dealer, a wholesaler and often a middle man and or the original miner or producer. So the price you paid for the diamond can depend, not on just the type of diamond, its quality and weight, but also how many people it has passed through, miners, cutters, distributors, brokers, wholesalers, and finally the retailer, all of whom will require their 'cut'.
The current diamond price is, then, an accumulation of these additions to the cost of the original diamond.
Probably the worst place to buy a diamond is from a retail jeweler. The mark up is the highest and when you come to sell you might get a bit of a shock to find that you will get less than half the price you paid for it. On a 10,000 dollar diamond, for example, bought retail you would be lucky to get 4000 dollars for it when it comes to sell your treasured possession.
Diamonds do not appreciate in value very much. There is a steady rise over the years but little trade in diamonds from an investment point of view. There is very little secondary market in diamonds.
DeBeers waged, arguably the biggest marketing campaign in the world to encourage people to buy and retain new diamonds and not to sell them. So most diamonds end up as either jewelry or in industry.
If you buy your diamonds from a professional diamond dealer online you are likely to pay proportionately less than from a retail jeweler and therefore when you sell you will get a higher price. However it will still seem low and, unlike buying and selling gold there is little profit in turning over diamonds unless you are a dealer.
Where to Sell your Diamonds
There are a few pointers to selling diamonds that will help you get the best price possible however.
Firstly of course buy from a reputable diamond dealer. See the article on Buy Diamonds for some further information on dealers.
The best person to buy a diamond from you is a friend or acquaintance who has yearned for that diamond you have always had. They will usually pay the best price, i.e. the value of the diamond.
You could also sell your diamond through an auction such as Sotheby's for example.
Alternatively, try to find a diamond dealer who is going to sell direct to the public rather than one who will sell to a broker or another dealer. They will not have to split the costs and so you will get a better price.
The closer, in fact, you can get to selling retail the better price you will get. Of course you can try to sell by auction such as on eBay for example. As you are selling direct you may get the best price. If you are not sure you can set a reserve price so that you do not lose by selling for some ridiculous sum.
Do Your Homework
Many wholesale diamond buyers are looking for specific cuts of diamond so it pays to understand the cuts and the 4Cs. Information about the 4 Cs can be found at the article on the
4 c'sThe more you understand about diamonds and how they are valued. The more you understand the diamond market, the best price for your diamond you will get. It is wise to keep in mind the above points and do some homework and you will be able to sell your diamond for a reasonable price.