Selling Your Diamond: 5 things you should know
The very first step to sell your diamond jewelry is to understand what you have in hand. Diamonds are appraised based on the 4C’s: cut, color, clarity and carat weight. Since this grading system is very well documented over the internet, a person in possession of a diamond classification certification can easily find the information.
However, the issue is that the grading norms of diamond evaluation can vary widely, and that for various reasons:
1-The source of the evaluation
Grading norms, although determined according to commonly known scales, vary because they remain highly subjective to date. This is why the credibility of the source of the evaluation regarding the quality of the stone is extremely important for a buyer when you are trying to sell a diamond.
Among the most reliable sources, a classification report from the GIA (Gemological Institute of America) or the AGS (American Gem Society) is generally highly regarded. A serious buyer will still take the time to do their own inspection of the stone to confirm the advertised characteristics.
In the business of selling and buying diamonds, a buyer cannot solely rely on any document presented to them. The credibility of the source determines the value that can be placed on the data. As such, the buyer may or may not agree with the document provided. They are not required to base their value estimate on the characteristics presented in a document.
2- Additional criteria
It may occur that the diamond jewelry buyer considers other specific criteria that do not generally appear on the grading or appraisal report. In addition to the cut, color, clarity and carat weight of the stone, the buyer’s evaluation may take into account the color and impact of fluorescence on the diamond, the type and exact positioning of all the inclusions, or whether the stone was appraised set or loose.
The price offered for the same stone may therefore vary from one buyer to another in a diamond sales process, since each buyer may evaluate it differently and assign a variable level of importance to characteristics that others may not necessarily consider.
3- The initial overvaluation
It is possible, when selling your diamond, to be surprised by a lower offer than the price paid in store. This difference may be due to the fact that there is a tendency for jewelry appraisers and retailers to overstate the grading and the actual market value of diamond jewelry. When a diamond jewelry buyer discovers that a diamond does not have the characteristics advertised in the seller’s documentation, they do not take into account, in their offer, the prices indicated on the seller’s certificate or the premium that was paid at the time of the initial purchase.
4- The industry
Changes in the industry can also affect the value of the offer to buy your diamond. Market demand for a certain type of diamond, for example, can increase or decrease the price that experts are willing to pay for them. The quality of the cut can also potentially have an impact on the current value of your diamond.
When wishing to sell their diamond at the best possible price, make sure to deal with an expert to learn about the current state of the industry in order to choose the most appropriate time based on the distinctive qualities of your stone.
5- Wear and tear
Your diamond may have signs of wear and tear or have suffered damage since it was first appraised to produce its classification report. This is particularly the case when a stone is set and worn. The buyer will have to take into account the chipping when evaluating the product if it results in the buyer having to anticipate costs related to repolishing or recutting, for example.
In short, a credible and experienced diamond jewelry buyer, such as Laferriere & Brixi Diamantaires, will take the time to examine your diamond in person and explain his or her decision process. In addition to the characteristics included in your diamond’s classification report, their offer may be influenced by various factors such as the source of the evaluation, specific additional criteria, initial overvaluation, industry fluctuations and the current condition of the stone. They will then make an offer that the person wishing to sell their diamond can choose to accept or decline.