Get the answers to the following questions:
- Do diamonds have resale value?
- Do diamonds increase in value?
- What is my diamond worth?
- How can I get a price for my diamond?
Do Diamonds Have Resale Value?
The answer is a resounding yes. Whether it is an engagement ring, diamond family heirloom or even a loose diamond, they all have value. There is always a market for selling diamonds quite simply because there is always a demand for diamonds.
Do Diamonds Increase In Value?
Unfortunately, diamonds very rarely increase in value these days. Of course, it depends on a lot of factors, including, but not limited to, how you bought it (discount online retailer, friend in the trade or chain store mall retailer) and when you bought it. Prices have slid over the last 10 years or so in many categories, except, for example in certain colored diamond categories. Unless you have a truly exceptional colored diamond (not one with a modifier colour like brown or brownish), your diamond is unlikely to make you money.
There is a popular misconception that diamonds are good investments that increase in value over time. But this has not been true for the majority of diamonds in circulationin the last 10 years or so. The reality is that most diamonds have declined in value over this period. Just like when you drive a newly purchased car off the lot, the value of a diamond drops dramatically when you walk out of the jewellery store.
But why is this? One factor is the retail mark-up. Jewelry retailers, like those in most other industries, buy products at wholesale and mark them up some a lot more than others. Unfortunately, this means that the intrinsic worth of the diamond, and therefore the resale value, will be much lower than what it was purchased for. Combine that with a slide in wholesale prices over the last 15 years, then you are looking at a negative return on your investment.
What Is My Diamond Worth?
It depends who you ask! Lets take a look at the three main diamond values:
- Purchase Value: Anyone who has walked into a jewellery store can attest to the high prices of diamond jewellery. According to Business Insider, jewellers often place 100% to 200% mark-ups on their diamond jewellery. Jewellers set these high mark-ups to cover slow moving inventory, operating costs and profit. Which means that it is likely that your diamond is going to be worth less than you paid for it.
- Appraisal Value: When you bought the diamond, the jeweller may have provided you with an appraisal value. The appraisal value is often higher than the actual amount you paid for the diamond to ensure that you can replace it without incurring further costs. It probably also makes you feel like you got a bargain. But, it means you pay an even higher insurance premium for the piece.
- Resale Value: The resale value is how much you will get paid if you decide to sell the diamond. As a result of the retail mark-up and the decline in diamond prices, the resale value is typically well below what you paid. Indeed, diamond jewellery will typically resell for 25% to 50% of the purchase price. And even less as a percentage of appraisal value.
How Can I Get A Price For My Diamond?
To get a price for your diamonds, your best option is to work with the diamond experts. At myGemma, we are a leading international diamond buyer and industry experts. Our team of GIA trained gemmologists have the necessary skills to evaluate your diamonds and price them based on the current second-hand diamond market. Thanks to our international presence, we have a global network of connections and the buying power to ensure that you always receive competitive and honest offers.
Selling your loose diamonds and diamond jewellery with us is always an easy and free process. Best of all, it can take as little as 48 hours to sell. There are never any hidden fees or commissions that will be deducted from your offer, so the final amount you hear is exactly how much you will get paid. Our secure and trusted service has earned us hundreds of excellent customer reviews.
To begin the selling process, simply complete our online form with information on your diamonds. We will then get back to you shortly with a price quote. To get your final offer, we provide two convenient options:
- Schedule an Appointment: We hosts appointments in Birmingham every Monday through Friday from 9am to 5pm. We also hold monthly appointments in London as well. Appointments typically last for 30 minutes, during which your diamonds will be evaluated and priced. You may accept payment by check or bank transfer. Appointments are always free, regardless if you sell to us.
- Sell Online: We can provide you with a free, fully insured so that your diamonds are secure, fully insured and trackable. Once your pieces arrive at our Birmingham office, our team will promptly evaluate them and contact you with our firm cash offer as well as an explanation of how we came to that price. We pay by bank transfer but there is never any obligation to sell. If you refuse the offer, you can request to have your items returned to you for free.
Click the button below to see just how much you can get paid for your diamonds today.
