Diamonds are a great investment option for several reasons. First of all, they’re a great way to diversify your portfolio (like precious metals) and have a value that isn’t likely to go anywhere in the nearest future. Second, how many assets you have in diamonds is nearly impossible to track, which is both a safety measure and a step of precaution. Also, diamonds can be carried around in a suitcase, even a pocket, making them into a mobile asset to carry with you in the case of an emergency. If there’s an urgent reason for you to leave your home, retrieving your diamonds from a safe would be by far the simplest thing to do.
The most expensive of diamonds have an ever-growing value, while even those with a somewhat lower quality can be sold to meet the demands of the jewel crafting industry. This means that a diamond can also be considered a liquid asset, giving entrepreneurs a great alternative investment option to consider. Keep in mind, nonetheless, that the value of the sale may be determined by the method of the sale. With that in mind and without further ado, here are several things you need to know about selling your diamond (or diamonds) the right way around.
1. Factors that determine the value
In order to be able to sell your assets, you must first know their value. Needless to say, there are a couple of factors determining the value of your diamond. First of all, you have the weight that’s expressed in carats. Second, you have the clarity of the diamond, the cut and the color. All of these physical properties affect its value on the market. The shape of the diamond and its proportions sometimes tend to be just as relevant.
Keep in mind, however, that the correlations of these diamonds interact in different ways, which is why there are the two best ways for a layman to go on about this. First, you should find a reliable diamond price calculator. Here, you can enter all of these metrics and get a rough estimate of the top and bottom value of the diamond in question, as well as its median price. Second, you can go to an expert and ask for their estimate, even though this will cost you extra.
When selling your diamond, this will help you determine whether you’re getting a good deal or not. Just bear in mind that the other party is trying to make a profit as well, which is why you need to be ready for some bartering. The more you know, the more efficient at this you will be and the more leverage you’ll have.
2. You need to have a proper certificate
The next thing you need to understand is the fact that in order to sell a diamond, you need to have a proper certificate of authenticity (COA). When it comes to diamonds, there are a lot of trusted organizations out there, organizations like American Gemological Society (AGS), European Gemological Laboratory (EGL) or International Gemological Institute (IGI). In order to be considered valid, the certificate also needs to describe the product in detail, as well as contain other information regarding it. Without a COA you might not be able to find a proper buyer, at least not at a price that you deem fit. Even though COA is not required by law, the buyer is most likely to insist on it.
You might also encounter the term GIA certification of a diamond. What’s important for you to understand here is the fact that GIA isn’t really certifying diamonds, it’s grading them. Now, in order for your diamonds to be GIA certified, you might be required to pay a certain fee based on the weight of the diamond in question. For instance, while you may be required to pay about $64 for a 1/2 carat diamond, the price can go up to $120 for a 2 carat. Still, given the fact that GIA certification will help you close the sale of the diamond, this investment is more than worth it.
3. Look for some professional assistance
There are so many platforms specialized in selling diamonds out there and these platforms definitely exist for a reason. Not only do they make it easier for you to close the sale but they are also a lot more reliable. Previously, we went to lengths to describe the verification, estimation and authentication process and with the right platform, all of this can be done in your stead. Even if you just need some assistance or consultation, you can look for help with selling diamonds from trained professionals. Just having a quick talk or email exchange with someone who has spent years in this industry can make all the difference in the world.
4. The setting
Another important thing for you to keep in mind is the very setting of the diamond. Is the diamond on its own or in a piece of jewelry? If the latter is the case, the state of the setting, the materials and the craftsmanship put into it will also affect the price. Still, in order to know for sure, you might need some assistance from yet another expert. The age of the setting is also quite important, due to the fact that it might add to the value of the jewelry piece (as an antique).
5. The history
Keeping track of the history of the jewelry piece is also a relevant metric. First of all, if you have the knowledge of a previous seller (and the one before that), you already have proof that the item was bought legally. Also, it’s easier to validate and certificate the piece of jewelry or a diamond. Other than this, it’s also quite relevant that you keep all the receipts and similar paperwork related to the diamond. This way, you have proof of ownership.
6. Set realistic expectations
If you’re selling a jewelry piece, you need to understand that the chance of getting close to the retail value isn’t realistic. In some of the most extreme scenarios, you might be able to get only a fraction (20 or even 10 percent of the original price). Keep in mind, however, that you need to do your research on this first, in order not to get scammed into agreeing to unrealistic terms. Also, even though this diamond might be in your family for decades (even a full century) a sentimental value doesn’t go into a piece. In these cases, it’s better to avoid the sale (if possible) and leave an item as an heirloom.
7. Try acting as a buyer
Finally, why not try out some roleplaying and go undercover as a buyer? Pretend that you’re buying for the exact same diamond/piece of jewelry that you own and see what kind of price you can get. Shop around in local jewelry stores, go to online platforms and do your research. Try to barter and see where that will get you. All this knowledge you can, later on, apply during your own negotiations in order to get the best deal possible. Keep in mind, however, that this takes time and this is a luxury that a lot of people simply don’t have. As always, selling when you’re desperate is a bad idea, regardless if it’s diamond or any other asset that we’re talking about.
At the end of the day, you need to think about selling the diamond as soon as it comes into your possession. Some see it as a contingency plan, while it would be more accurate to attribute this to just logical thinking. If you see this as an investment, this is the only logical next step, as well as something that will determine the ROI of the entire process. Fortunately, now you know better and have a chance of getting the most value out of this deal.