How to Sell a Diamond Ring

Selling a diamond ring is a personal decision that is influenced by individual circumstances, preferences, and priorities. A decision to sell a diamond ring could be driven by financial considerations and the need for immediate cash. 

Perhaps there has been a major life change with a broken relationship so you don’t want a previous diamond engagement ring or wedding ring that serves as a reminder for that period of your life. Maybe you were gifted a diamond ring through an inheritance, and while it may be a lovely piece of jewelry, it doesn’t match your personal style.

Another reason to sell a diamond ring is that you’d like to upgrade to a more elaborate setting and a more valuable diamond. You could have decided you want to include other gemstones with your new diamond. Or, you may want to downgrade your jewelry to something more simplistic.

Whatever the reason is for selling a diamond ring, doing so can provide individuals with the opportunity to achieve their goals and meet their needs. So where and how to begin the selling process?

Understand A Diamond Ring’s Value When Selling

Your first step is to understand how the value of your diamond ring is determined. While some of the valuation criteria for diamond rings are shared whether you are buying or selling, there are some distinct differences in determining value when selling. There are several components listed below that influence resale diamond prices. 

Certification

If you received certification on your diamond from a reputable gemological laboratory such as Gemological Institute of America (GIA) or the American Gem Society (AGS), this can enhance the retail value of your diamond ring. Certificates by trained gemologists provide diamond buyers with a standard of assurance with the quality and authenticity of the diamond, which can increase the diamond’s perceived value.

Quality of the diamond

The quality of the diamond ring depends on the quality of the diamond itself. The 4C’s, carat weight, cut, color, and clarity are crucial components of a diamond’s value. High quality diamonds with excellent grades in these areas typically command higher retail prices. If you desire the best diamond, you will need a good combination of the following:

• Carat weight: This refers to the weight of the diamond. Diamonds are weighed in carats. Larger diamonds are rare and generally more valuable than smaller ones. However, carat weight is only one portion of the diamonds overall quality or beauty.
• Cut: The cut of a diamond refers to its proportions, symmetry, and polish, rather than the diamond shape (i.e. round, princess, emerald, cushion, oval, etc.) The cut is crucial as it affects the diamond’s brilliance, fire, and overall appearance. Well-cut diamonds reflect light more effectively resulting in maximum sparkle and brilliance. The cut of a diamond is rated on a scale from Excellent (highest grade) to Poor.
• Clarity: Clarity refers to the presence of internal flaws (inclusions) and surface imperfections (blemishes) within a diamond. Diamond clarity is graded on a scale from Flawless (no inclusions or blemishes visible under 10x magnification) to Included (inclusions and /or blemishes visible to the naked eye). Diamonds with higher clarity grades are rarer and typically more valuable.

Photo by American Gem Society

• Color: Diamond color refers to the presence of yellow or brown hues in a diamond. The GIA grades diamond color on a scale from D (colorless) to Z (light yellow or brown). Colorless diamonds with the grades D-F are considered the most desirable and valuable as they exhibit maximum brilliance and fire. 

There are however, some fancy-colored diamonds, such as green, blue, pink, or yellow, that are prized for their unique hues and can then demand high prices. Shown below are a green diamond, a fancy yellow diamond, and a pink diamond (photo credit of pink diamond by GIA).

In addition to the 4C’s, the symmetry and polish of a diamond are also taken into consideration. However, the 4C’s provide the major framework for assessing a diamond’s quality and value.

Market trends and demand

During times of economic prosperity, consumers may be more willing to spend on jewelry which can lead to an increased demand for diamonds. On the other hand, during a poor economy, the demand for diamonds may decrease as consumers prioritize essential expenses. Diamonds are a limited natural resource which increases their value. Supply disruptions or geopolitical tensions in diamond producing regions can also influence market dynamics and prices.

Consumer preferences and tastes evolve over time which can affect the demand for different types of diamonds and jewelry styles. Trends in fashion, lifestyle, and social influences can also drive changes in consumer preferences. Brand name fine jewelry often commands a higher price due to its perceived value. An example of brand name rings like Cartier, Gabriel & Co., and Tiffany & Co. rings are below.

 

Classic and timeless styles such as the solitaire, three-stone, and halo settings (as seen below) tend to maintain their popularity and resale value over type. These styles appeal to a broad range of buyers and generally remain in fashion. 

Vintage and Antique rings, especially those with unique designs or historical significance can have excellent resale value. These rings often appeal to collectors and enthusiasts which drive up their market value. Pictured below are three examples of vintage rings.

Lab-created or lab-grown diamonds have not established a firm standing in the resale market. Lab grown diamonds still have diamond grading, but they are not perceived as an equal to a natural diamond in the jewelry industry and are priced and worth substantially less. How well they sell is still progressing. Below is a lab grown-diamond.

Appraisals versus offers

Appraisals represent an estimate of the replacement cost or fair market value of a diamond ring. The purpose of an appraisal is generally for insurance purposes or personal knowledge. 

The offer made from a buyer to a seller is the price based on their assessment of the diamond’s market value, combined with leaving enough room for them to make a reasonable profit margin if they plan on purchasing the diamond jewelry to resell. Therefore, do not expect to get the appraisal price from a buyer if they will resale it.

Preparing to Sell Your Diamond Ring

In addition to learning about the above items, you can get your diamond jewelry cleaned by a local jeweler. Rings that are free from damage may command slightly better prices compared to those that will require extensive repair by the buyer’s jeweler.

Pricing

The price you desire should be realistic and account for both market value and demand (taking into consideration a reasonable profit margin for the buyer who is planning on reselling), and the condition of the diamond ring.

Factors like diamond quality, brand reputation, design and market trends can affect the perceived value of the ring and influence what will be your buyer’s best price offer.

Where Can I Sell My Diamond Ring?

Selling your diamond ring will depend on various factors such as your preferences, timeline, and the specific characteristics of your ring. Here are some common options for potential buyers:

Online marketplaces

Platforms like eBay, Craigslist, or specialized jewelry selling websites provide a broad reach and potentially higher selling prices. However, you’ll need to invest time in creating a detailed listing, managing inquiries, and arranging shipping and payment securely. There is danger of scams and fraud when dealing with unknown buyers.

Consignment shops

Consigning a ring to a jewelry store allows them to sell it on your behalf for a percentage of the sale price. This option may take longer than selling outright, but could result in a higher price.

Pawn Shops

Pawn Shops or pawnbrokers can offer a fast option for selling your diamond ring, but they will generally offer a lower price rather than a fair price compared to using other selling options. Pawn shop owners also do not often have the diamond-grading expertise to accurately assess the value of your ring.

Online Jewelry Buyers

While selling to online jewelry buyers can offer convenience and potentially competitive prices, there are disadvantages to consider. Selling diamond rings online carries risks of fraud, scams and misrepresentation of buyer intentions. Online jewelry buyers may offer lower prices compared to traditional brick and mortar stores. You will be shipping valuable items which are subject to possible loss, theft, or damage during transit. In the event there is a problem, it will be more difficult to resolve issues with online jewelry buyers compared to a local jeweler.

Diamond Dealers

Some diamond dealers specialize exclusively in loose diamonds, but many also deal in second- hand diamond jewelry. Wholesalers often deal in loose diamonds. Retail dealers sell both loose diamonds and diamond jewelry. Using a diamond dealer includes benefits like expertise, reputation, customer base, and potential trade-in opportunities.

Auction Houses

Selling your diamond ring to an auction house may be a good idea if it is valuable or has historical significance. Auction houses have the potential to reach a broader audience and yield competitive prices. Expect to pay fees and/or commissions to sell your jewelry at an auction house. This option may take longer to receive your money, and it is also possible the jewelry will not sell.

Local Jewelry Stores

Some jewelry stores purchase second-hand diamond rings. Selling your diamond ring to a jeweler poses less risks than selling your engagement ring online. Jewelry stores will evaluate your ring and offer cash.

It is wise to check a jewelry store’s reputation with its ratings, reviews, and the Better Business Bureau. You want to find a jeweler with an established reputation who is trustworthy. Jewelry stores have a wide customer base and offer secure and convenient transactions. You can also check to see if they have a trade-in or upgrade program allowing you to apply the value of your diamond ring towards the purchase of an upgraded new engagement ring.

Conclusion

Selling your diamond ring is a significant decision. Do the necessary study to learn about your ring’s important characteristics. Carefully consider the pros and cons of where you want to sell. By weighing your options and selecting the method that best aligns with your priorities and preferences, you can navigate the selling process with confidence.

The Estate and Watch Company has an established reputation of excellence for customers who are looking to buy and sell their jewelry. You can find us in Downtown Old Scottsdale and Chandler. Come talk with our professionals to help you get the best deal for your diamond ring.