Tips to Sell Your Diamond Jewelry

Many people want to sell their diamonds or diamond jewelry but don't know where to begin. How do you know what your piece is worth? What are your options concerning where to sell it and to whom? And most importantly, how do you keep yourself from becoming a victim of fraud or compromising your personal safety? Unless you are a professional diamond dealer, the transaction of selling your diamond jewelry can be quite intimidating. Learning a few tips can simplify the process and ensure that you collect cash for your piece instead of allowing it to sit in a drawer collecting dust.

The resale worth of a diamond is dependent on many factors. While many consumers have heard of the 4 Cs (carat, color, clarity and cut), they may be confused as to what those terms mean and how they affect the value of their diamond. It is important to remember the color and clarity can be slightly subjective when using the venerable standards of GIA (Gemological Institute of America). For example, a person may purchase a diamond and be told that its color is H (near colorless) when, in fact, the stone is much closer to K (where a faint yellow tinge would be quite visible). Also, many consumers mistake "cut" for "shape;" the former refers to the proportions and cut specifications of the stone and will greatly impact the brilliance and therefore the value of the stone. Shape is also relevant, since all fancies (marquise, pear, princess, radiant, cushion, asscher, oval, heart, and emerald cuts) are valued well below the most popular shape: the round brilliant cut. Old European cuts (circa 1880-1930) can be more valuable than their fancy shape counterparts due to popular demand.

Commonly, people believe if they have an appraisal, this document represents the value of their piece. In fact, an appraisal is mainly for insurance purposes and reflects a high retail replacement value-irrelevant when it comes to resale. If you are lucky enough to possess a report from a reputable lab such as GIA or AGS, then this can be very beneficial in determining value. Since these labs have an excellent reputation and are independently run, the specs they report are reliable and will help assure buyers that your item is exactly what you represent it to be. If you do not have one of these lab reports, it may be worth getting one, but this represents an additional cost and only makes sense to obtain if your stone is of higher value. Consult more than one reputable jeweler in your area for advice on this as well as what he or she believes to be the specifications and resale value of your stone. It is a good idea to check what similar items have recently sold for on sites such as eBay (requiring an account to view "Completed Listings"). One thing you can be virtually certain of: if you bought your diamond from a retail store, you will not be able to resell the diamond at the price you paid for it.

As far as where you sell your diamond jewelry, you have a choice of two main directions. You can either sell to a private party, or sell to or through a professional. Selling to a private party will most likely bring in the highest dollar amount. However, there are substantial risks if you wish to go this route. Scammers are prevalent regardless of where you list your piece, and it can take substantial time to sell a piece this way. If you use a site such as craigslist.org, which has the advantage of being free, you must be especially careful of your personal safety and common fraud. Only accept cash and agree to meet somewhere public and safe such as a bank lobby or jewelry store. The auction site eBay carries less risk of personal safety and fraud, but fees are applicable regardless of whether or not your piece sells and listing the same piece in multiple locations is discouraged.

If you want to avoid the hassle of selling to a private party, you have the option of either selling on consignment, or selling directly to a buyer. When you place your piece on consignment, you agree to allow the store to sell your item and give you a percentage of the proceeds once the item sells. Before leaving your diamond jewelry at a store, make sure you have a copy of their sales' terms in writing (including how long they wait until dropping the price) and an accurate description of your item. Remember that even if a shop agrees to take your item, there is no guarantee it will sell. If you want to avoid the risks of private party selling and the waiting for payment necessary in consignment, your best option is to sell directly to a professional buyer where you will receive an immediate offer for your jewelry. Whether you decide to proceed with the consignment option or sell to jewelry professional, be sure to check their rating with the Better Business Bureau as well as consumer driven websites such as yelp.com. Surprisingly, some extremely well-known national companies have low ratings due to shady business practices, so it pays to do your homework.

A trustworthy professional buyer will be able to explain in detail why he or she is offering a certain amount and offer you ample time without pressure to decide whether or not to sell.