Written by: John O'Rourke • December 7, 2015• Ask the Expert Coral Gables

What You Need To Know Before Selling Your Diamonds

A diamond is forever, but there may come a time when you want to part with it. Perhaps you’ve inherited jewelry as part of an estate that includes real estate and other assets like stocks. You may want to use the sale of the jewelry to offset the costs of taxes or other expenses and keep the other assets for the future. Or, if a marriage ends you may want to sell a ring and use the money towards a fresh start. No matter the reason that motivates you to sell, it’s important to educate yourself and approach the sale with as little emotion as possible.

Unlike gold, which is priced based on purity and melt value, diamonds have many ways to measure their worth. Some are subjective and others can be determined during an appraisal. In the case of a wedding ring or inherited jewelry you may not have been present during the initial purchase and may not know the type of cut or quality of the gem. Let’s uncover the mysteries of diamond selling so you’ll feel comfortable as you go through the process.

Find out about your diamond.
The market doesn’t take into account it was your mother’s jewelry and she felt it was valuable. Take the stone to a qualified appraiser who can give you an analysis of the stone’s characteristics and condition. You’ll discover valuable information like the type of cut, how it reflects light and if there are any inclusions that could affect its value.

Expect a realistic price.
People are often disappointed with the price offered in comparison to what they thought something might be worth. Ask your appraiser how much the stone might be worth in specific markets and circumstances. Market trends can drive prices up or down. Looking at online sales can be frustrating since no two diamonds are the same and prices may vary based on the weight and quality of the stone. You can compare your pre-worn diamond with new settings in retail stores, but keep in mind that stores have to mark-up their inventory to cover rent, salaries, promotion, taxes and insurance. Someone buying your stone may offer only what the stone is worth without all those added costs.

Evaluate your selling options.
You have two choices – sell to the public or to the jewelry industry. Selling to the public involves finding the right buyer willing to pay your price. The process can be lengthy or you may never even find a suitable buyer. Selling through online sites means you’ll pay a commission as much as 15 percent and you may need to filter out several scam artists. The advantage of selling to a jeweler is that they can usually complete the transaction quickly. So if safety and time is a concern for you or you don’t want to fuss over marketing and negotiation, your best course of action is to approach a jeweler. Jewelers may also offer you a good deal on a trade-in for a new diamond or other jewelry.

Be ready to sell.
Try to eliminate emotion from the process. Jewelry is often symbolic of a memory from an important milestone of your life but you may not always retain the sentiment. You’ll know when it’s time to move on. Knowing that someone else may enjoy what was once yours or part of your family can be uplifting.

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Last modified: December 6, 2015