We often hope that diamonds (and the relationships that bring them) are forever. That said, whether it be through the end of a relationship, an inheritance, or some other life event, we frequently end up with diamonds that we no longer want.
That’s 100% okay. There’s never any shame in selling your loose diamonds or diamond jewelry. That said, as selling diamonds is not as straightforward as selling gold, we, at Diamocycle, are pleased to offer you our Diamocycle Guide to Selling Your Diamonds Online.
The Changing Tides of Selling Diamonds
It’s long been in the interest of the diamond industry to dissuade consumers from re-selling their diamonds. Keeping diamonds off the resale market limits supply and allows diamond providers to keep their price high.
In addition, difficulties of safely selling diamonds to reliable buyers in one’s own community also posed a significant barrier to sell. That said, with the growth of online shopping and reselling, selling a diamond has simply become easier and the route of selling a diamond or diamond ring online has become one of the most popular and eco-conscious ways to alleviate yourself of the bother of selling diamond jewelry or your loose diamonds.
In Our 2021 Guide to Selling Your Diamonds Online, we’ll share with you some baseline assumptions for selling your diamonds, what to consider when looking to sell your diamond online, and what we consider a diamond-grade process for selling your diamond to vendor online.
WHAT TO KNOW BEFORE SELLING YOUR DIAMOND
Make sure you’re emotionally ready to sell your diamond.
Over time the sentimental value a loose diamond, diamond ring, or diamond jewelry accrues is often far greater than its accrued actual value. Given this additional variable, we often encourage first-time diamond sellers to make sure they’re truly ready to sell their diamond before asking for an estimate or proceeding with the process.
Unfortunately, diamond buyers cannot take your emotional investment in your diamond into consideration, which can make selling processes drawn out or offers feel disappointing. With that in mind, if you truly want to be successful in selling your loose diamond, diamond ring, or diamond jewelry online, we encourage you to be fully detached from your diamond before proceeding with your process.
It is nearly impossible to make a profit selling a diamond you bought for a retail price.
While the myth of investment diamonds has persisted, it is often very hard for the average consumer to make a profit on a previously purchased commercial diamond or engagement ring. While the base value of diamonds has increased across the decades, the in-store mark-up of any retail diamond is so significant, that any increase in the value of a diamond will be negligible compared to the loss you will incur when selling a retail diamond or engagement ring back to a local retailer.
To further explain, we encourage you to consider how a diamond retailer covers their business expenses, overhead, and overall costs. To do so, they purchase a loose diamond or a piece of diamond jewelry at a base or wholesale price, which they then mark-up to make a profit on such a transaction. When you resell a diamond ring, your buyer will often only pay you a fraction of its wholesale cost (which does not include its full wholesale value or the commercial mark-up you paid when you purchased the diamond). As a result, the selling price of your diamond is going to be limited to far under what you paid for your diamond.
For reference, we encourage you to keep in mind that the retail mark-up of engagement rings can range from anywhere between 30-100% of the wholesale price of the piece.
Long-standing relationships are king in the diamond world.
Even if you’re satisfied selling your diamond at a wholesale price, odds are still high that a retailer won’t even offer you a standard wholesale price as they can get a diamond with your diamond’s specifications from a vendor they trust at that wholesale price. Instead, to mitigate the risk of buying from an unknown entity (you) – the price you will be offered for selling your diamond jewellery or loose diamonds will be significantly below wholesale market value.
That said, there is a solution: Sell Your Diamond Online.
Given the above stated facts of the diamond industry, selling a diamond can seem daunting, if not impossible. That said, with the rise of online shopping – we strongly encourage you to turn to a corner of the diamond industry that doesn’t have to contend with paying for retail spaces or as much overhead as your traditional jeweler: the online diamond marketplace.
That said, selling your engagement ring or diamond jewelry online can seem opaque and intimidating. Read on to discover our tips and tricks for getting the best price when selling your diamond online.
To get the full lay of the land of all the various ways and places you can sell your loose diamonds or diamond jewelry, check out our Diamocycle Guide to Where to Sell Diamond Jewelry.
BEST PRACTICES FOR SELLING A DIAMOND ONLINE
As we all know, the internet is a vast place offering any consumer many options. You can sell your diamond jewelry or loose diamonds direct consumer-to-consumer or go through an online vendor. Here are a few nuggets of Diamocycle wisdom, based on the type of vendor you select.
Selling Consumer-to-Consumer
Selling consumer-to-consumer involves options such as selling your loose diamond, diamond rings, or diamond jewelry on an online marketplace such as Craigslist, Facebook Marketplace, or eBay. While you don’t have to worry about the overhead and bureaucracy of selling to a brick and mortar retailer, unless your online profile has a history of successful transactions and high customer ratings, your seller may ask for a discounted price to offset your lack of vetting on the marketplace.
In addition, as you’re selling a luxury good without the auspices of an institution, we remind you to be safe and responsible in your business dealings. Make sure you meet in a public place and have alerted a close friend as to the details of your encounter. While we wish for you the very best in your navigation of selling diamond jewelry or loose diamonds online, we also encourage you to prepare for the possibility of the worst.
If you’re committed to selling direct consumer-to-consumer, we encourage you:
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List Your Loose Diamonds or Diamond Jewelry with a Credible GIA Report
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Include Real, Clear, HIgh-Quality Photos
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Be Clear Whether Your Selling Price is Firm or Negotiable
Selling to an Online Retailer
For a variety of reasons, we strongly recommend that you sell your loose diamond, engagement ring, or diamond jewelry to an online retailer. While they will have minimal overhead as they’re not a brick and mortar store, you’re also dealing with a known institution and entity which will ensure you a truly fair price and a baseline peace of mind in your business negotiations.
That said, as you compare your options for online diamond retailers, we encourage you to find an online diamond retailer that offers :
1. Offers Free & Insured Shipping and Return Shipping
Not all online diamond retailers are created equal. We encourage you to look for an online diamond retailer who will insure the shipment of your diamond, cover your incoming diamond shipment, and also offer an option for return shipping should you decide not to sell your diamond, engagement ring, or diamond jewelry to them.
2. Top-Quality Customer Service
While diamonds grace the shelves of a variety of merchants – from Pawn Ships to Tiffany & Co. Jewelers, you can decide to what type of online merchant you’d like to sell your diamond, diamond jewelry, or engagement ring. While sentimental value, unfortunately, cannot factor into the amount you’ll receive for your loose diamond or diamond jewelry, you can at least make the decision to work with a vendor who treats you with respect and offers a confidential, luxurious selling experience.
3. The Option to Work with a Gemologist / Years of Experience in the Industry
It’s always essential to know the 4Cs of your diamond (color, cut, clarity, and Carat) and beyond that, we strongly recommend selling your diamond to an online diamond buyer that likewise has the capability to likewise align on the specifications of your diamond jewelry or loose diamonds. Whether it’s by offering a GIA evaluation, having a gemologist on-site, or having decades in the industry – the more your online diamond buyer knows and understands the value of your diamond, the better a price you’ll be able to receive for your loose diamond or diamond jewelry.
4. A Clear and Transparent Process
We absolutely agree that dropping a diamond in the mail to an online diamond buyer you’ve never met can be a daunting prospect. With that in mind, we strongly encourage you to only work with online vendors who offer a clear and transparent process. Along with insuring your package, you’ll want to understand what happens should you decide not to sell your diamond. Beyond that, we encourage you to fully understand any and all fees or charges that may arise through the diamond evaluating and selling process.
5. A Respectful and Timely Exchange
Beyond that, we encourage you to enter into a conversation with your online diamond buyer. Be clear with them about your hopeful price range that you’d be willing to sell your diamond and their anticipated timeline you’d prefer for receiving your funds. By making sure all parts of your online selling process are clear, you’re not only establishing trust but setting yourself up for success.
With top-quality customer service, a clear and transparent process, and an online diamond buyer with deep expertise in the industry, selling a diamond line can be a safe, easy, and rewarding process. As always, we encourage you to contact us should you have any further questions about the online diamond selling process or Diamocycle in general.
While Diamocycle is obviously an online retailer to whom you could sell your diamond jewelry or loose diamond, we offer you this advice free of obligation and with an expertise of the industry and field at large. As always, we encourage you to make the best choice for your unique and personal situation.
Over our 164 years in the jewelry trade, we’ve built a business and our legacy on trust and impeccable customer service. Over five generations, we’ve continued to take our reputation seriously and still continue to place our integrity over profit. We truly stand by the notion that a reputation is hard to earn but easy to lose.
We were founded with the principle of helping people under how to recoup the greatest value for their jewelry and we continue to expand and innovate on our systems so we can always offer a fair market value to our clientele.
With currently over 50 years combined of in-house experience in the diamond and jewelry trade, we take pride in being a family business, that’s neither owned by a hedge fund or that operates as a venture capital company. Instead, we take pride in being a family business that priorities legacy planning to enhance the next year and the next century. To leave our earth better than we’ve found it, we’ve pledged to plant one tree for every diamond we recycle. Beyond that, we’re always excited to support young entrepreneurs with innovative ideas that give us hope for a better future.
While we’ve been in and are committed to this business for the long haul, we’re always proud to remain your local family neighborhood jeweler.