If you own a diamond or are thinking about buying one, you may have noticed that many diamonds have grading reports or certificates. But what are these and why do they matter? And since no two diamond grading l...
How Much are Diamonds Worth?October 16, 2019 - Diamond Articles
Get answers to the following questions:
- What is the difference between diamond retail value and resale value?
- Which factors affect the value of a diamond?
- Do diamond prices fluctuate?
- How can I get a price for my diamond?
- Where can I sell diamonds for the best price?
Diamond retail value vs resale value
When determining how much diamonds are worth, we have to differentiate between their retail value and their resale value:
- Diamond retail value: The retail value is the price you paid at purchase. Brick and mortar jewelry stores place significant markups on their diamond jewelry, these can be 100% to 200% higher than what they purchased the piece for (though the larger the diamond, typically the lower the margin). These price markups are to cover operating costs, slow moving inventory and to make a profit. Online jewelry stores in comparison, typically have lower overhead, which results in lower markups.
- Diamond resale value: The reality is that your diamond’s resale value will be much lower than its retail value. Depending on where you bought your diamond (and the markup) and its qualities, you can expect to get back 25% to 50% of your diamond’s purchase price. Similar to driving a new car off the lot, diamonds depreciate in value once they leave the jewelry store. Even unworn, it still experiences this dramatic price drop because the retailer has charged a markup from the wholesale price.
Factors that affect the value of a diamond
Your diamond’s value is largely determined by the 4C’s. These are the universally accepted diamond grading criteria established by the GIA.
The 4C’s include:
- Color Grade: How much color a white diamond displays on a scale from D (colorless) to Z (faint yellow). Fancy colored diamonds such as blues and pinks are graded on their color intensity from Fancy Light to Fancy Vivid.
- Clarity Grade: How many imperfections a diamond has, such as dark or cloudy spots. Clarity is graded from FL (flawless) to I3 (visibly flawed).
- Cut Grade: How well-cut and proportionate round diamonds are; graded from Excellent to Poor. Fancy cut diamonds, such as pears and ovals, do not have official cut grades.
- Carat Weight: How much a diamond weighs in carats, frequently abbreviated to ct.
You can find the 4C’s of your diamond on paperwork that came with its purchase such as a diamond grading report, jeweler’s appraisal or insurance appraisal. If you have lost your paperwork or never received any, you can meet with a local jeweler to get a rough idea of your diamond’s characteristics.
Other factors that affect how much diamonds are worth include:
- Brand: Diamond jewelry from luxury brands such as Tiffany &. Co. or Harry Winston will command higher prices than non branded jewelry.
- Branded Box: If your diamond is from a luxury brand, selling it with its box and papers in good condition will increase its value.
- Certification: Diamonds with certification from reputable diamond grading labs, such as the GIA, demonstrate the diamond’s authenticity and characteristics.
Do diamond prices fluctuate?
The short answer is no, the majority of diamonds do not experience price fluctuations. The diamond market is tightly controlled by diamond distributors who release a certain amount of new diamonds into the market every year to maintain prices. While your diamonds will benefit from long term inflation over the span of many decades, you are not likely to recoup what you spent on your diamond.
There is only a small category of diamonds whose value increase over time. Large white diamonds with outstanding color, cut and clarity grades as well as exceptional fancy colored diamonds, such as reds, blues and greens, increase in value because of their limited supply and high demand. For instance, there are only about 20 to 30 truly red diamonds believed to exist. According to the Natural Color Diamond Association, “prices for natural blue diamonds has been gradually and consistently rising between 12 and 17 percent every year over the past decade.”
How to get a price for my diamond?
The best way to find out how much are diamonds worth is to inquire with expert diamond buyers, such as WP Diamonds. Simply fill out our online form to receive your price quote from the diamond experts. Our professional selling process takes as little as 24 hours and is entirely free. From the moment you inquire to the moment you get paid; you never have to spend a penny. Our commitment to excellence is illustrated by our A+ rating with the BBB and hundreds of outstanding customer reviews.
But who is WP Diamonds? In 2012, WP Diamonds was established by industry veterans with the goal of revolutionizing the process of selling diamonds and diamond jewelry. Having recognized that the only options available to consumers were slow and tedious (auction houses or online ads) or a low-end selling experience (pawnbrokers): WP Diamonds was created. We provide a simple, fast and free way to sell diamonds and diamond jewelry for competitive prices. With a dedicated client manager working with you from start to end, as well as the option to sell online or in person, our goal is to make the process of selling as enjoyable as the process of buying was. With offices in 3 continents, we work with hundreds of customers from around the world on a daily basis.
Our service is backed by a team of GIA trained diamond experts who understand the complexities of the pre-owned diamond market. As international diamond buyers, we possess the necessary industry connections, knowledge and buying power to get our clients the highest prices for their diamonds.
Where can I sell diamonds for the best price?
The best way to get the most money for your diamonds is to work with the diamond experts. Diamond grading and pricing is complex and nuanced. Selling to experienced gemologists with in-depth knowledge of the second diamond market will help you secure higher prices.
To start selling to the experts, complete our simple online form with information about your diamond. Your dedicated client manager will shortly get back to you with a price quote and answer any questions you may have. To get your final offer you can either schedule an appointment at one of our discreet and comfortable offices in New York, the UK or Hong Kong or use our free, fully insured, trackable and overnight shipping service. You can accept payment by cash (in person appointments only), wire or check. There are never any hidden fees or commissions deducted from your offer, so the final price you hear is exactly what you will be paid.
Click the button below to get a price quote for your diamonds and diamond jewelry.