How to Sell a Diamond

For many people, there comes a time in their lives when they realize that diamonds are not really forever, and they would rather pass it on to someone else for one reason or another. It might be an engagement diamond ring from a marriage gone bad, or even a diamond necklace given as a gift from an ex-boyfriend. Either way, it's extremely important to educate one's self regarding the outlines of how to sell a piece of diamond jewelry properly.

Step 1 - Get your diamond jewelry appraised: In order to sell your diamond, it is crucial to have some sort of documentation that demonstrates its value. There are many professional appraisers to choose from but it's advised to check their affiliations beforehand. If they belong to the International Society of Appraisers, the Appraisers Association of America or the American Society of Appraisers, then it's a good indication that the appraisers are indeed reliable. The appraisal office could provide you a formal statement of the diamond's characteristics which include quality, dimensions, clarity, cut, color and inclusions. Most importantly, upon request the appraisals will also include the estimated monetary value of your diamond, also known as the Rapaport value. This value is an indication of the wholesale price of your diamond, and you must realize that this value is the maximum price you could hope to get for your diamond. It could be somewhat frustrating to know that the same exact diamond you are in possession of could be sold in a jewelry store for a much higher retail price, but that's just reality. You are a private vendor and don't belong to any jewelry store, thus any person purchasing a diamond from you will simply look for a good deal and nothing else.

Step 2 - Look for a potential buyer: This is the trickier part of the process of selling a diamond and it requires your utmost levels of patience and persistence. There are many methods of finding a potential buyer, and some are more advised than others. You should be aware that the price offered in return for your diamond jewelry could heavily fluctuate from one potential buyer to another, and thus it is very important to know who you should turn to and who you should avoid.

Recommended potential buyers:

1. Acquaintances: There is no doubt that the best person to sell your diamond jewelry to would be an acquaintance of yours, either a friend or someone from your family. This is simply due to the fact that they trust you and will therefore be more likely to give you the best deal on your diamond jewelry. Remember that you have the upper hand over jewelry stores because you offer the wholesale price as opposed to retail price. It is strongly recommended to look around for acquaintances as potential buyers before moving on to sell your jewelry to a complete stranger.

2. Jewelers / Jewelry Stores: Although it is recommended to sell your diamond jewelry to a professional jeweler, you must be extremely cautious while doing so. Use your common sense and never let your diamond jewelry out of your sight. Unfortunately, there have been numerous cases where the diamond was switched for a poorer quality one behind the seller's back, so watch out. It is better that you immediately show the jeweler your appraisal certificate to demonstrate to him that you mean business and you are well educated about your diamond. Most chances are that the jeweler will offer you dump value price or even lower than that. Dump value is a phrase in the diamond industry used to describe the lowest possible value one should sell his diamond for, and it ranges between 60 to 80 percent of the Rapaport value that's indicated on your appraisal. Although this may seem quite low in price, it is actually very fair. However, if the jeweler were to offer you a price lower than the dump value of your diamond jewelry don’t make any deal with him and continue on to the next jewelry store or potential buyer.

3. Auction Houses: Only if you happen to be the owner of a high end piece of diamond jewelry, is it recommended to try your chances at an auction house. It is suggested to offer your diamond jewelry for sale in a prestigious and popular auction house, such as the two famous auction houses in New York - Christie's and Sotheby's. You will be asked to provide the lowest value you are willing to sell your diamond at, and it's advised to give the dump value as a reasonable starting point, but it's really up to you to decide.

Sale methods should avoid:

1. Pawn Shops: Unless you are willing to accept absolute peanuts in exchange for your diamond jewelry, avoid turning to pawn shops at all costs. Their main objective is to buy cheap from you and then to quickly sell it to the next customer. Most pawn shops offer a ridiculous figure as low as 10 percent of the Rapaport value stated in your appraisal.

2. On consignment: This is the approach where you give your diamond jewelry to a jewelry store so that they could sell the diamond jewelry on your behalf and then split the profit with you as agreed beforehand. This could appeal to many people out there because it seems to save you the hassle of actually looking for a buyer yourself. One might think that due to the large flow of customers a jewelry shop receives, your jewelry would be likely to sell at a faster rate. However, no matter how much these supposed advantage seem to appeal, you must use your common sense and never leave your diamond jewelry with strangers. They could easily switch your precious diamond to a worse quality one or even to a fake cubic zirconium behind your back, without you even noticing the difference, and then call you to say that he couldn't sell your jewelry. You will be left with nothing but grief when you realize you've been cheated in such a ruthless manner. The best advice is to avoid this method altogether and not take the risk.

3. Classifieds: Although this might seem like a good sale approach on paper, it very seldom works and proved to have only an 11 percent success rate. It seems like a complete waste of time and money (spent to advertise your classifieds), and you could even put yourself in danger due to unnecessary exposure to crooks who want to steal your diamond jewelry. Setting up appointments with potential buyers and finding yourself bailed out on time and time again could be extremely frustrating and time consuming.

Selling a diamond could be much more complicated than you may think at first. You must be well educated about your diamond and do your homework when it comes to methods and recommendations of how to properly sell your diamond jewelry. If you are patient and have good negotiating skills, selling your diamond could prove to be a wonderful way to turn unwanted diamond jewelry into ready cash.