How to Decide Whether to Sell Your Diamond During COVID-19?
Without question, these are unprecedented times. At Diamocycle, we remain committed to helping you make the best decision for your family and financial situation. Feel free to check out Diamonds in the Time of Coronavirus for Our Three-Step Plan to help you and your family feel both physically and financially prepared during this period of change and unchartered territories.
At the heart of every big decision is discerning what is best for you and your family. For those deeply impacted by the financial changes caused by Coronavirus, and in need of extra means, it might be appropriate to sell or liquidize assets to help you and your family stay afloat for the several months ahead.
If you have decided to now is the moment to sell a piece of jewelry to support your family, we support you in making what might feel like a large or difficult decision. We’re more than happy to talk on the phone or answer any questions you may have about our evaluation and extraction process.
To further help you make your decision, here are a few key takeaways from our experts:
Stocks vs Assets: Methods for Creating Short Term Cash
Compared to the plummeting price of stocks and the likely continuation of the Bear market, diamond prices and commodities have stayed relatively strong. If you need to generate funds for the short term, we would strongly recommend selling assets over stocks. The price you are to receive for your assets like fine jewellery will be a truer reflection of the value of the item, while the price for your depreciated stocks will be far lower than what you might receive once the COVID-19 crisis has passed.
The Historical Tendencies of Diamond Prices
Using data from the 2008 market, we’ve actually seen a lack of correlation, or perhaps an inverse correlation, of diamond prices to the market as a whole. Which is to say, as the market drops, diamond prices tend to hold steady or even increase, as people turn from more volatile investments to the sale of physical assets such as diamonds and gold, which throughout time have traditionally maintained their value. If you need to sell your diamond, data from the 2008 recession says you will receive a standard, or perhaps slightly higher price, as diamond value tends to hold strong against the volatility of the stock market.
The Retail Crisis and Online Marketing in a Time of Social Distancing
With brick and mortar stores closing during this time of staying at home, we estimate that many retail stores will not be able to offer competitive prices, services, or safe environments for their clientele, as the health of their staff and the financial health of their own business is in jeopardy. Likewise, given the changing economic times, we estimate that local appetite for luxury jewelry may be low as families re-evaluate their financial situations.
For those looking to receive the true value of their item in a sale, we recommend turning to online and nationwide retailers who will have a stronger financial picture, a longer horizon for their financial survival, and will be able to offer a competitive market value for your item, given their access to markets beyond their immediate community. Beyond that, for your own health, we strongly recommend turning online for your transaction to keep you and your family out of danger of transmission by conducting your business remotely.
In a time of social distancing and “sheltering-in-place,” Diamocycle is more than happy to help you receive a free quote on your item without putting yourself in a risky position of leaving your home or letting you sell your item for less than it’s worth. On our end, we’re taking every precaution necessary to make sure our shipping supplies and processes are sterile and contamination-free and we are likewise practicing physical distancing in our workplace to protect our team.
As always, we’re here for you. Feel free to call today with any questions you may have. While we’re in uncertain times, we’re here to do all we can to make the transition a little smoother and these times a little less uncertain.