Why, How, and Where Should I Buy Used Engagement Rings?

Why, How, and Where Should I Buy Used Engagement Rings? 


Why Buy Used vs. New from an investment standpoint

Why Used Engagement rings are the best eco-friendly and sustainable engagement rings. 

Why a used engagement ring should be a natural diamond& not a lab-created diamond

Should I Buy a Used Engagement ring Online or In-person 

How not to get cheated Buying a Used Engagement Ring 

What to know about used engagement rings before purchase.

How to Safely Complete a transaction buying a used engagement ring

How to get an Appraisal and Insurance for my Used Engagement Ring

Across our publication, the Diamocycle Dispatch, we discuss the many places you could buy a used engagement ring and why used is the best value in diamond engagement rings. Since 1857, for over 164 years, our family has been in the diamond and jewelry business. We take pride in giving you the same advice we give to valuable customers. 

Why Buy Used vs. New from an investment standpoint

For most retail consumers, diamonds are not an investment. They are a luxury purchase. Very comparable to any luxury item. No different than purchasing a Gucci purse. A new diamond engagement depreciates approximately 50% the first day it is purchased. This is from a conservative standpoint. New diamond rings purchased from high markup brick and mortar jewelers can depreciate approximately 70-80%. A used engagement ring depreciates about 15-30%. So, while you will still lose money if you need to sell, the loss is less. Diamond Engagement rings decline because of the cost of manufacturing, marketing, and distribution channels. The smartest choice you can make is to let the first buyer pay for this depreciation. 

Why Used Engagement rings are the best eco-friendly and sustainable engagement rings. 

We consistently argue that used diamond engagement rings are the best choice for your wallet and the environment. They are the equivalent of recycling any item. With the exception, it requires almost zero natural resources to recycle a used diamond engagement ring. Repurposed diamonds are a sustainable choice. A new diamond is not an eco-friendly purchase, and a used diamond certainly is. 

Why a used engagement ring should be a natural diamond& not a lab-created diamond

Lab-created diamonds are the current rage. Lab-created diamonds are chemically the same as natural earth mined diamonds but created in a lab. Currently, you can acquire a lab-created diamond that is 2 to 3 times the size of a natural diamond for the same price. The problem is that the cost to manufacturer lab-created diamonds is going down each year. So, the resale value is dropping each day you own a lab-created diamond. If you need to sell a lab-created diamond, you will receive a fraction of your initial investment, and there will be very few interested buyers. At the same time, lab-created seems like a wise investment choice; upon further observation, it is not. The amount spent on a used natural diamond, our preferred option, will appreciate, and depending on the length of time you own the used diamond, you could profit from selling it. While purchasing a new or used lab-created diamond is a sure way to lose the majority of your investment. 

Should I Buy a Used Engagement ring Online or In-person? 

We discuss this in great detail in our comprehensive guide to buying a used engagement ring, and please start herehttps://www.diamocycle.com/a-guide-to-buying-a-used-diamond

 for all the pros and cons of buying online and in-person. Our preferred place to buy a used engagement ring is online from a used diamond-specific marketplace. In contrast to eBay, Facebook, or Craigslist. A diamond-specific marketplace has a system for verifying your purchase and protecting your money while the used engagement ring is inspected and verified. Ideally, a diamond-specific market has your item verified by an independent gem lab, not an in-house commission-based employee. A diamond-specific used marketplace should insure your purchase in transit and have some return policy. To start shopping, our marketplace for used engagement rings begins here. Diamocycle Marketplace

How to not get cheated Buying a Used Engagement Ring 

There are many ways sellers can misrepresent buyers of used engagement rings. Here are a few common ones. Never Purchase the following

Treated Natural Diamonds-( fracture filled, laser, irradiated for color, coated for color)

Lab-created Diamonds-( worth pennies on the dollar when resold)

Unethical Diamond Certificates-Not all diamond certificates are created equal. 

The following is a list of labs and their commonly understood standing in the diamond industry. We believe that the diamond grading is inaccurate below a third-tier lab. 

Top Tier: GIA

Second Tier: AGS, HRD, GCAL

Third Tier: IGI, PGS

Fourth Tier: GSI

Fifth Tier: EGL

Fake Diamond Certificates– A less common practice is a laser inscription on a lab-created diamond from a natural GIA-certified diamond. It is easily identified by a reputable gem lab but requires specialized equipment.

Switching a lower quality diamond for a higher quality after purchase is standard practice by unethical sellers of diamonds in person. 

Purchasing a Diamond Simulant would likely happen when shopping from an in-person venue like a pawnshop or an in-person transaction like Craigslist. The pawnshop could have unknowingly purchased the diamond simulant. The Craigslist seller could be a professional crook. We discuss the methods of defrauding buyers in this guide. https://www.diamocycle.com/diamocycle-dispatch/5-things-you-must-know-not-to-get-scammed-buying-a-previously-owned-engagement-ring-online

What to know about used engagement rings before purchase.

Know the essential characteristics of Diamonds and the quality that affects the price

Ideally, a buyer of used diamond engagement rings is educated about diamonds. Here is an excellent guide on diamonds compliments of GIA, the world’s foremost diamond laboratory and diamond educational resource. About a Diamond — Diamocycle

A GIA Diamond Certificate is King in the Diamond World

A GIA diamond certificate enables a professional diamond buyer to make a reasonably accurate market bid on any diamond without ever seeing it. Essentially it turns a diamond from a mysterious stone into a commodity. While diamonds are very complex, no diamond of the same color, clarity, and weight has the same market price. Due to other factors like face-up dimensions and depth related to the cut of the diamond, if you’re going to purchase an expensive used engagement ring, we highly recommend it have a GIA diamond certificate. There are undoubtedly other reputable diamond labs, and we have disclosed those above. If the United States Dollar is the preferred global currency worldwide, the GIA diamond certificate is similar to the most universally accepted diamond certificate globally.

Exceptions When a GIA Diamond Certificate is unavailable

It is worth mentioning that GIA only provides diamond certificates for loose diamonds, so not all used engagement rings can have these. If you’re purchasing a used engagement ring, an alternative inspection method would be an appraisal conducted by a GIA-trained appraiser from an independent gem lab or an independent gem appraiser credentialed from GIA. For some rings like Antique diamond rings, it is impossible to take them apart and get a GIA diamond certificate, and a marketplace for used diamond rings can not feasibly get GIA diamond certificates without dismantling sellers’ rings which is not an option. 

How to Safely Complete a transaction buying a used engagement ring

 We go into the depth of this subject in this guide.https://www.diamocycle.com/a-guide-to-buying-a-used-diamond

Online-Transactions for used engagement rings

The first step to safeguarding your purchase is buying from the best online marketplace. The marketplace should, as previously mentioned, inspect and protect customers’ purchases. Ideally, they also have an escrow service for buyers’ funds. In addition, they should have the following.

  • Used Engagement Ring Verified by an Independent Lab, not an In-house Employee.

  • Escrow Buyers Funds

  • Insured Shipping

  • Some form of Return Policy

  • Ban the listing of treated natural diamonds and diamond simulants

  • Not accept Lab-created diamond listing.

  • Provide buyers with a suggested market price

In-person Transaction

  • Avoid Craigslist for personnel safety.

  • When purchasing from a friend or associate, have the used engagement ring inspected by a GIA-trained gemologist.

  • Avoid Pawnshops for purchasing used engagement rings that are not jewelry specific, as most do not have the staff to identify diamond simulants, treated diamonds, or lab-created diamonds. However, some independent pawnshops have trained GIA gemologists on teams. 

  • Avoid brick and mortar jewelry stores to purchase used engagement rings due to the high costs of conducting business. In addition, a brick and mortar stores will need to charge a higher price than an online marketplace for a used engagement ring due to their higher operating costs to make a profit. 

How to get an Appraisal and Insurance for my Used Engagement Ring

The last step in protecting your purchase is getting an up-to-date jewelry appraisal for your used engagement ring. The appraisal should be from a GIA credentialed gemologist. At the same time, it can be for more than the purchase price due to factors like inflation and the rising cost of natural diamonds. It is not advantageous to insure your preowned rings for a significantly more considerable amount unless you would like to replace them with a new diamond in a loss scenario. You will simply be overpaying for insurance. For our guide to diamond and jewelry appraisal, start here. Diamond & Jewelry Appraisal — Diamocycle. You will need to have a bill of sale, GIA certificate, or diamond and jewelry appraisal to obtain proper insurance. Having worked replacing precious used engagement rings, we believe the gold standard in jewelry insurance is Jewelers Mutual. We are not compensated in any manner for this referral. They have always impressed us with their level of care, attention to customers, and going above and beyond replacing used diamond rings. Unfortunately, not all insurance carriers are created equal, and we have had horrific experiences trying to help customers replace used engagement rings with low-cost insurers. 

We enjoyed helping you navigate the world of used engagement rings. We have a secure vetted marketplace for buyers and sellers of used engagement rings. Diamocycle Marketplace. Our 164-year legacy in the diamond and jewelry business means we understand that reputations are hard to earn but easy to lose.