I was recently approached by a friend who inherited a diamond ring he had no need for, and had no real sentimental attachment to. He was looking to sell the ring and asked for my advice on the best way to go about this. Of all the things to have extra of in your life, diamonds are certainly not the worst, but hey extra is extra. Often people have older rings they no longer want or, unfortunately, have newer rings that are no longer welcome, (if you catch my drift).
Whatever the circumstance, hopefully my experience and advice on selling a diamond will prove helpful to those looking to unload some bling!
Step 1: Appraise!
If you’re really intent on selling your stone, before doing so it’s best to get an appraisal if you don’t already have one. It justifies the value of the item and the amount you’re asking for, while giving the purchaser something to rely on: an expert opinion by a third party on the value of the stone.
Paying for an appraisal will be a further investment on your part, and the appraisal may show a value on the stone that is less than you hope to get by selling the stone (meaning you will have to sell it for less), but ultimately it will be ten times more difficult to sell a stone that has no appraisal.
You could approach the appraisal process a couple different ways:
First, you could invest in a GIA or EGL certification. This means that you send your stone to one of the two most recognized institutions in the world for certifying diamonds and other gemstones: The Gemological Institute of America, or European Gem Labs. GIA certs are the most recognized, and being able to show a GIA cert will instantly kick your stone to a whole other level as far as recognition and trust from interested parties. An appraisal from GIA on a 1ct stone costs about $100 and can be done in under two weeks. You can check out more information at www.gia.edu.
The other option is to go to a trusted and reputable local jeweler that offers appraisals. If you opt to go this route, visit the jeweler and make sure you feel you trust this establishment. Rely on word of mouth perhaps from people you know, or check to see if they have a website and what they say about themselves. From firsthand experience working for an independent jeweler, I can tell you that our appraisals were less technologically savvy than GIA certs—we printed them ourselves and hand-signed them—but the expertise behind the grading was nothing to scoff at. Plenty of local jewelers have the experience and knowledge to offer you a reliable appraisal. The cost and timliness as compared to a GIA cert should be at an advantage to you, so compare pricing and turn-around. If they cost the same and take the same time as GIA, just go with GIA.
Divide and Conquer!
Consider unsetting a diamond that’s in a ring. Often people may be more interested in buying a loose un-set diamond rather than one that is in a setting. Consider having a jeweler put a cheaper colored stone in the setting and selling that item separately, or turning the setting in for a scrap value. If you’re willing to separate the stone from a setting, make sure you have the jeweler do it before appraising, as it will make the appraisal easier to perform.
To the Interweb!
Research is always a good idea when selling something, whether it be your old Snoopy snowcone maker or a diamond. It’s a good idea to research what comparable prices are being offered for an item like yours, be it on Ebay or on jewelry-specific sites like BlueNile.com. There are many diamonds in this world and yours will be up against several others. You’ll have to make it stand out with a competitive (but not un-believable) price.
BlueNile.com has some of the most competitive prices, and also, in a diamond search, lists many current diamonds available by some of the industry’s main suppliers, so it’s a great standard to use to get an idea of competitive pricing. Often independent jewelers will refer to Blue Nile to double-check their appraisal amounts, since the whole idea of an appraisal is to know how much it would cost to replace a similar item. Search on the site by entering the criteria known about your stone (based on the appraisal) and consider selling your item for at least 15-20% below Blue Nile’s price.
Once you have done some research, one of the best ways to get the most for your stone is to sell direct to a buyer. You can sell on a site like eBay, but definately look into all the ins-and-outs of protecting yourself and your item: escrow, money orders or PayPal, and insured shipping. Make sure your method of shipping will cover gems or jewelry and to the proper amount. Don’t fall for anything that seems too good to be true, or if someone seems strangely eager.
Last Ditch Effort—Hawking Your Goods
If you just don’t have the time for all these steps, you might just want to spend a day traveling around to various jewelry stores (or if youre near a city, your local ‘Diamond District’). Visit various jewelers, and see if they’re interested in purchasing your item, or if they’d be willing to consign your item until a customer buys it.
Most likely they will only be interested in buying if they make a good business selling diamonds, you have a stone that is useful to them (decent quality), and you’re willing to sell it for less than they could buy from a supplier. Again, Blue Nile pricing is very close to wholesale pricing, so ask what their offer is and compare it to what you’ve already researched.
As far as consignment, most stores don’t like to do this, but chances are there are a few who may not mind helping you out and making a little percentage on some free inventory. But be aware, you wont get as much money this way as you would selling direct to a buyer yourself. After all, the jewelry store has to make a cut, otherwise its not worth it. You’ll also want to make sure you trust the store you’d be leaving the diamond with. If taking it in, they should at the very least write you a receipt documenting that the diamond has been left with them. Ask them to include approximate grading on the receipt (based off of your appraisal), and hell, even a little mapped out drawing of key identifiers in the stone if they can. If you’re in the central New Jersey area, you could certainly look up my former stomping grounds, The Gem Vault, in Flemington, NJ. An expert shop you can trust without a doubt, says I.
This may take some time, but I wish you luck. And know that its not impossible; it just takes getting acquainted with the type of people who will be interested in buying from an individual and who can develop a trustworthy transaction with you.
