Why Buy Engagement Rings Used

This Guide Covers: Why Buy a Previously Owned Engagement Ring. 

Including: 

• Diamond Center Stone Markup 

• Diamond Setting Markup

• Resale Engagement Ring Value Explained

Across our Guides and The Diamocycle Dispatch, we break down the many options for where to buy and sell used diamond jewelry. Where should you sell pre-owned diamonds and how to buy used engagement rings? 

In our comprehensive guide, we offer our used diamond expertise to anyone who plans to buy used rings or is shopping for used diamonds. 

Please read the guide below for all the best engagement ring tips! https://www.diamocycle.com/a-guide-to-buying-a-used-diamond. 

This following is a brief guide regarding examples of diamond center stone markup and diamond setting markup. We’ll answer all your questions involving, “How much is my diamond worth?” and “How much cash can I get for my diamond?” 

If you are a savvy buyer, you will choose to buy used diamonds and engagement rings online from a vetted diamond-specific online marketplace. These marketplaces are where the smart shopper is able to score deals on cheap diamond rings, earrings, and other pieces of jewelry for sale. 

Any luxury consumer in the know should be aware that the American used diamonds marketplace occupies the center stage as the world’s largest source for recycled engagement rings. The strategic consumer would be wise to capitalize on this buyer’s market for pre-owned engagement rings. 

When you ask yourself, “Where can I buy a preowned diamond?” or “Where to sell my engagement ring for cash?” the answer is always sell your used jewelry online. 

Now that there are secure online marketplaces to shop for previously owned rings, buyers no longer need to search “buy used jewelry near me” or “sell engagement rings near me.”  

At Diamocycle, we take pride in demonstrating how used engagement rings are the smart financial choice for budget-minded consumers. The eco-conscious shopper can appreciate how environmentally friendly jewelry is also the best choice for the planet.   

Diamond Center Stone Markup

In the 1990s,  brick and mortar jewelers used to mark up a diamond with what they called “a triple key,” or a 300% markup. As savvy customers now shop online and can compare their in-store prices, brick and mortar jewelers can now only mark up the center stone to the level of the customer’s knowledge. 

Often an independent store will not have a standard price markup but will gauge how savvy the shopper is and where they are comparing prices. Remember, used loose diamonds are the same as new diamonds, and there is no price difference in the wholesale diamond trade for a used diamond compared to a new diamond. Make sure to always do your research to ensure a fair sale.

Diamond Center Stone Example:

The following is an example of the potential markups that might occur when shopping for a  diamond center stone via different retail outlets. 

As always, our literature should be used as a guide and not a hard and fast rule. In general, a brick-and-mortar jeweler cannot compete with an online marketplace because of the overhead and additional cost dynamics. 

However, new diamonds go through several markup channels, so buying used can always save you money.

History of Price Markup by Seller:

IN 2020: 

Brick and Mortar Jeweler buys a diamond center stone from a diamond dealer at $5,000 and sells it to a retail customer for $15,000.

Your Cost: $15,000

IN 2022:

New Online Diamond Merchant (like Blue Nile):   Buys the  center stone diamond for $5,000 and sells for $6,000 

Your Cost: $6,000

Used Diamond  Marketplace (like Diamocycle): 

Sells the same center stone for $5,500 at a discount to the new price.  A fee from the seller is received. 

Same Diamond Center Stone: Your Cost is $5,500

Brick and Mortar Jeweler: Buy the same diamond for $5,200 as it does not have the capital to buy in the same market as large online sellers like the Blue Nile and sell the same diamond for whatever they can hope to get. 

Often, they fluctuate their mark up by how savvy the shopper is. There is no advantage to being a loyal customer as the jeweler often assumes these customers have their trust and will not research the price they are getting online. 

Same Diamond Center Stone: Your Cost is $6,200-$9,000. 

Winner: Used Diamond Marketplace: $5,500

Potential Approximate Saving on  Repurposed Diamonds Centerstone: 9%-67%

Start Shopping Here for A great place to look for loose diamonds GIA certified: Buyer’s Guide — Diamocycle

Diamond Setting Mark Up: 

In 2000, a brick and mortar jewelry stores made most of their profit on diamond center stones. Today that has changed. In 2022, a brick and mortar jeweler could make a significant dollar profit on the diamond setting depending on the size of the diamond center stone purchased by the buyer. 

Perhaps the one advantage over the online marketplace is that a buyer can try on a setting in person. Diamond settings are also very personal to the buyer, which gives brick and mortar stores an advantage, as they allow a buyer to fall in love with items in-person. 

The changing tide of young consumers shopping online and virtual reality tools where shoppers can take a picture of their hand and see what a preowned wedding ring might look like further disrupts the market and the traditional advantages that brick and mortar stores once offered. 

Diamond settings depreciate more than diamond center stones and have little value on the used market. Therefore, a knowledgeable buyer would choose to purchase a preowned diamond setting. 

We illustrate this extreme depreciation of the pre-owned engagement ring below:

Diamond Setting Example: 

The year 2000

Brick and Mortar Store: Buys it for $1200 from a manufacturer sells for $2,400-$3600

Your Cost: $2,400-3,600

The year 2022:

Brick and Mortar Jeweler: Buys for $1,200 and sells for approximately $2,400.00

Same Diamond Setting: Your Cost $2,400.00

Online New Diamond Marketplace: Buys for $1,200 sell for $1,800-$2,200

Same Diamond Setting: Your Cost $2,200.00

Used Diamond Marketplace: Brokers Sale for $1,000-$,1500.

Same Diamond Setting: Your Cost $1,500.00

Winner: Used Diamond Marketplace: $1,500

Potential Saving on a Used Diamond Engagement Ring Setting: 20%-260%

Start Shopping Here: A great place to look for preowned wedding rings: Buyer’s Guide — Diamocycle

How your used wedding ring depreciates:

You paid: $2,400.00 for your new diamond setting. 

Your Setting is now only worth materials in the Recycled Market

Gold or platinum ( market dependant): average settings weight 4-6 grams=approximate $250

Net Recoverable diamonds value (.5 carat total weight  at $200/PC example): $100.00 

Net Materials Recovery Value: $350.00

Potential Depreciation: $2,400 ( original cost)-$350 (materials value)

Your Loss on your preowned wedding rings = $2,050.00

Resale Engagement Rings’ Value Explained:

 The labor and marketing expenses required to make and sell a diamond setting are not recoverable. So, purchasing a used diamond setting is the smart choice as you minimize your loss on this purchase for those looking to buy and sell diamonds. 

If you’re shopping for Preloved Engagement Rings, please feel free to use our massive educational resources. The Diamocycle Dispatch

We help buyers purchase used diamonds on our secure marketplace Buyer’s Guide — Diamocycle, and sellers get a fair price for their used diamond rings. 

Submit a Listing — Diamocycle. We have been specialists as a family since 1857 in fine jewelry resale.