People perceive diamonds as highly valuable, although their market value frequently differs from expectations. Most diamond sellers expect to receive the exact purchase price when selling their stones, which rarely turns out to be true.

In fact, the resale value of diamonds can be 20% to 60% below retail prices based on various determining factors. Thus, what determines how much your diamond is worth when sold?

Knowing basic facts like cut, color, clarity, and certificate, you will get the best return. Market demand and trends also play a significant role as specific shapes and styles become more desirable.

Additionally, the resale value of a diamond is often different from its retail price, making it crucial to know what affects its market price. By learning about these factors, you can set realistic expectations and make informed decisions when selling diamonds online or through a jeweler.

1. The Four Cs (Cut, Color, Clarity, and Carat Weight)

The Four Cs is a common term in Diamonds. These four aspects play an enormous role in the price of diamonds. They are:

• The cut: This implies how well the diamond has been sculpted out from its raw form. The cut determines how light enters and reflects through the diamond. A well-cut one shines brighter, increasing its value. Hence, the better the cut, the higher the value.
• Color: Diamonds are found in various colors, ranging from clear (colorless) to pale shades of yellowish and brown. The lesser the color the diamond has, the higher the worth. Diamonds are graded typically from D (colorless) to Z (light yellowish). A graded D is more valuable than the Z grade.
• Clarity: Clarity refers to the number of imperfections (inclusions) in the diamond. The fewer the inclusions, the higher the worth. Diamonds free from flaws are rare and very costly.
• Carat Weight refers to the diamond’s size. Bigger diamonds are more expensive. However, carat weight does not determine worth. A small diamond with better quality, cut, and clarity may be worth more than a bigger one with less quality.

Collectively, these Four Cs determine the general quality of your diamond as well as its price. If you want to sell diamonds online, a streamlined process needs to be followed. Hence, it would be better to collaborate with an expert who knows comprehensively about loose and melee diamonds.

2. Diamond Certification

When you sell your diamond, it makes a huge difference if a well-known gemological institution issues you with a certificate.

A diamond certification certifies that experts have assessed the quality of the diamond. For example, a GIA (Gemological Institution of America) certificate is highly recognized in the diamond industry. It guarantees that specialists have checked the quality.

Moreover, with certification, you can ensure the authenticity of the diamond, so buyers tend to purchase it for an equal price. Also, it protects you, the vendor, and the buyer from possible conflict over the quality of the diamond. If it has no certificate, selling it for an equal price may be more difficult, as buyers do not know its worth.

3. Trends and Demands in the Market

Like any other product, diamonds also have trends and demands. At one time, demand for diamonds may be greater than at other times. If there are plenty of buyers, it makes them more expensive. If there are fewer buyers, the price may drop.

You should note that trends can change over time. For example, some diamond shapes and colors may be in high demand at a specific time. Also, the price may soar if there’s an increased interest as a symbol of love or investment in diamonds.

4. Shape of the Diamond

Diamonds have many shapes, and the one you choose does influence its price. Although round diamonds are best sellers, other shapes, including oval, princess, and emerald, also have notable values.

Round diamonds are more valuable because they are best sellers and require more cutting material. Other shapes, such as cushions or pear, may have an original-looking effect, but they still get an attractive price.

Therefore, if you’re selling diamonds over the Internet, the shape of your diamond could play an enormous role in setting its price. You need to price it so it appears to have distinct features while also considering the general preference of the buyers.

5. Resale Price vs. Retail Price

When you buy a diamond from a jewelry store, your price is often much higher than the resale value. This is because retailers add a significant markup to the price of diamonds. They factor in costs like branding, marketing, and overhead expenses. On the other hand, when you sell your diamond online, you’ll likely receive less than the original purchase price, especially if you’re selling a used diamond.

Moreover, diamonds in high demand or certified by respected institutions tend to hold their value better than others. If you’ve owned the diamond for a long time, the retail price you originally paid may no longer be relevant. Understanding the resale value of your diamond helps you set realistic expectations when you decide to sell it.

Conclusion

The value of a diamond depends upon various influential key factors, such as the Four C’s, certificate, trends, form, and resale price. Each affects the price buyers are willing to pay. A quality, well-cut diamond, adequately certified, with an appealing form, always fetches you a premium price.

The trend also plays an enormous factor, as demand fluctuates over time. Additionally, resale prices are often lower than retail prices, so setting realistic expectations is essential. Knowing these elements, you can choose wisely and obtain maximum worth from your diamond when you sell it.

LandonBuford.com Staff