What is the Resale Value of a Diamond Ring?

Diamonds last forever, but does the value of the diamond last forever too? That’s a question worth pondering over, and in this article, we will try to find out the resale value of a diamond ring. You will be surprised to learn that selling used diamond rings will not give returns you might expect. Rather you will face a significant loss in the deal because the used diamonds don’t fetch money in the secondary market, and that is why resale is not a good idea.

How Much is My Used Diamond Ring Worth?

The new diamond ring that you or your fiancé brought might have been worth millions, but the moment you take it in the secondary market to sell it, you will be astonished to know the sudden slash in the value, and this depends on:

· From where you had brought the ring: You must know one thing that when you buy a diamond ring, you not only pay for the diamond but also pay a hefty markup. The jeweller, wholesaler, and diamond manufacturer have their share in this supply chain, and the ultimate burden falls on the shoulders of the buyer. The costs like rent of the showroom, salaries, and other fixed expenses add to the cost of the diamond and this shoots up the price of the final product. If you are buying online, you might reduce some portion of the markup but still, there is a significant amount that goes in this segment. However, at the time of selling, you won’t be paid back anything that you had initially shelled out for the margin.

· Where and how you chose to sell it: In an ideal scenario, you can expect to receive somewhere around 20% - 60% of the original cost of the ring, which ultimately depends on where it was purchased. Cartier, Tiffany, and the like have very high markups and you must understand that this markup will not be considered when you sell it. If you choose to sell the diamond at a pawn shop you could be making a bad deal. On the other hand, if you choose to sell it to a wholesale diamond dealer, you might make a good bargain but it will be less in comparison to what retail dealer will offer. The reason is that the farther you are from the retail point of sale, the lesser will be offered to you in the transaction.

· What is the worth of the diamond: Remember one thing that the value of a diamond will decrease over time, and though diamonds don’t lose their sheen, their monetary value fails to impress. Lab-grown diamonds have no resale value and thus, if you intend to sell diamonds in the future, make sure you buy the natural diamond so that these fetch you some value when you sell them.

Diamond prices have been known to decline over the past decade, and for this reason, if you think that holding up will give you good returns, then you in for a toss. Diamonds don’t increase in value over time but having said, these rare pieces of art and class have an unmatched level of satisfaction to the one to whom these belong. Though these are a bad choice for investment, they have a high emotional value, which sets these stones apart from the others.

So when you decide to sell your diamond ring, you must know its exact worth and even if it is nota profit-making deal, make sure to negotiate on your terms. Get in touch with us to make the most of this transaction.