If you want to sell your diamond jewelry, there are many ways you can do this. Each method has its pros and cons, which will be explained throughout this article.
Regardless of which way you decide to go when you sell your diamond jewelry, it would help if you were prepared that the second-hand market value for diamond jewelry is significantly lower than the price for brand-new diamond jewelry, so you will need to set your expectations on potential valuations accordingly.
This guide will provide valuable insight and help you understand how to sell a loose diamond for the maximum price possible.If you are looking to sell your diamonds and make some extra cash, here is how you can go about doing that.Click To Tweet
Selling Diamonds for Cash in an Auction
An auction can sometimes yield higher than expected returns for an item but at other times can be lower.
An auction works by putting up an item for sale to a group of people who can bid on it. They can keep bidding and outbidding each other until someone has the highest bid.
It's possible to set a floor price, or a reserve price, at which the diamond will not be sold. Bidding will often start underneath this reserve price to try and get people engaged in the auction process.
Suppose there is significant demand for a piece of jewelry at auction. In that case, the auction process can work well at getting people competitively bidding against each other. Though this is possible with an auction, it is not always the case.
It can also take quite some time to find a suitable auction house for your diamond jewelry and for them to place your jewelry into one of their auctions.
Suppose you have a particularly unique piece of diamond jewelry or something very exclusive. In that case, an auction may have merits, but for diamond jewelry that might be considered “common,” an auction may not be the best place to try and sell diamonds for cash.
Place Diamond Jewelry in a Consignment Shop
Consignment refers to the process of placing your diamond jewelry in a jewelry store and having them display it on your behalf to their customers. Then if they find someone who decides to purchase your jewelry at your stated price, they will take a percentage of the sale price to reimburse them for the assistance they provided you in selling your jewelry.
This is an attractive option for sellers because you can set your price and show it to people searching for diamonds. However, it often takes a significant amount of time for someone to buy your jewelry. Not to mention, finding a jeweler who is happy to participate in this process can be difficult. Most jewelers will get a better return on their display space by showcasing their jewelry instead of selling yours.
But if you have a unique piece that could command a significant price, you may have luck finding a jeweler to take your jewelry on consignment.
You Can Sell Diamonds for Cash to a Private Buyer
Selling diamonds for cash to a private buyer has many attractive qualities. Firstly you can often command a higher price for your jewelry because there is no one to take a percentage of the sale price. Your sale price can be exceptionally high if you have a particular stone that somebody is looking for.
The downside of selling your diamond jewelry to a private buyer is that it can take quite some time, and there is no guarantee that anyone will ever be interested in it. The other risk is to you and your security. Though it is very rare, high-priced diamond jewelry can bring out individuals who are happy to use unorthodox means to complete their transactions.
A Local Jeweller May Want to Buy Your Diamond Jewelry
Selling or trading your diamond jewelry at your local jeweler can be the most convenient way to sell your diamonds. It is often easy to find one if you don't already have a local jeweler. However, local jewelers can be very selective about the type of stones they purchase.
The downside to selling diamonds for cash to a local jeweler is that they may not be willing to pay the price you want. They may be very selective about what they choose to buy because they need to be sure they can sell the jewelry and not be stuck with it for a long time.
Each of the four methods discussed in this article can be used successfully to sell your diamond jewelry as long as you understand that you will not get anywhere near the retail value for second-hand diamond jewelry unless you have a particularly rare or in-demand piece.