How Much Is My Ring Worth?
Including
Understanding Diamond Value
Understanding the Role of Brand
What Role Does The Diamond Setting Play in The Value
Why Your Ring is Not Worth The Same Price to Each Buyer
Who Should I sell My Ring To For The Most Money
Across our publication, The Diamocycle Dispatch, we discuss the qualities determining your ring is worth and how to get the most money selling your ring. Our legacy in diamonds and jewelry began in 1857, over 164 years ago. We take pride in giving you the advice we would share with a valued customer.
Understanding Diamond Value
Diamond value is based on each diamond’s unique characteristics. The color, clarity, carat weight, and cut of a diamond determine its value. A diamond goes through several distribution channels before reaching a final retail buyer. There are costs of distribution, and each party makes a profit. Therefore a diamond goes through many markups before it reaches the last buyer. When you sell a diamond, you will receive a fraction of the retail cost because of these many markups. Whom you sell your diamond to, and the fewer middle players will determine the percentage of the final retail price you can obtain. Your goal should be to sell as far down the distribution channel as possible. The farther you sell in the distribution channel, the lower the price you receive. If you sell locally for cash, you are selling far back in this distribution channel. If you sell overnight online, you could be selling closer to the end consumer. If you sell in an auction for the jewelry, you could be slightly closer but are paying auction fees. If you sell in an online marketplace to a retail customer, you are reaching the final user in the distribution channel. The likely range of price difference is 20-80% of the retail price, depending on how far down the distribution channel you can sell. The same is true for wholesale sellers.
Understanding the Role of Brand
A desirable luxury brand creates more demand and perceived value for your ring. A luxury brand has a higher value over the intrinsic value of the diamond center stone and materials. So, buyers will pay more for a luxury brand. The caveat being you will never recoup the original cost of this luxury piece and did pay a premium for the brand name when you purchased it. You most likely recoup a portion of this additional cost depending on how far down the distribution channel you sell your ring. The farther down the distribution channel to the final customer, the more a luxury brand is worth. This makes sense because a retail buyer compares the retail cost of purchasing the luxury ring to the price you are marketing it for, and any discount is a perceived value. A luxury brand can command 20-100% more than a comparable ring without the brand name. The price differences will be based on the type of piece, the era it’s from, brand demand, and selling method.
What Role Does The Diamond Setting Play in The Value
A diamond setting is the ring’s name that holds the diamond center stone. It is often made up of smaller diamonds and sometimes precious colored stones. The materials used for the setting are often platinum, 10kt, 14kt, or 18kt gold. The role of diamond setting in determining value depends primarily on whom you are selling your ring to. The setting has a low intrinsic value to a wholesaler, except for a desirable antique setting or a luxury brand. A retail customer will view the used price of the setting as a discount on the new price they would have to pay. A setting goes through many channels of distribution. Unlike diamond center stones, though, they have less intrinsic commodity value, so they depreciate far more percentage-wise. If you sell your setting for scrap materials, you will receive pennies on the dollar. The best customer for your setting is a retail one. You will likely lose value on your setting whatever selling method you pursue, but if you can sell to the final retail customer, you will get the highest percentage of value.
Why Your Ring is Not Worth The Same Price to Each Buyer
A diamond center stone or diamond ring is worth a different price to each buyer depending on where they are in the distribution channel and to whom they will sell it. If you sell your ring for cash to a local buyer, they will likely sell it to another wholesaler farther up the distribution channel. Your goal is to get to the final retail customer. So, the question becomes, how do I sell my ring to the last retail customer to get the highest price for my ring.
Who Should I sell My Ring To For The Most Money?
The best way to sell a ring is to the final customer. A retail buyer will pay at least twice more for your ring than a local buyer for cash. Our preferred selling platform is the online marketplace for diamond rings. At Diamocycle, we have a marketplace for pre-owned rings that provides sellers an ideal venue to sell safely from the comfort of their homes. Our low-cost and secure method will cut out the middle players and help you reach the final customer for your ring. So, start selling now and submit your ring for listing in our marketplace here. Submit a Listing — Diamocycle