Diamond Appraisal Vs. Diamond Resale Value
If you have a diamond that you’re ready to sell, there are some things you’ll want to consider before you sell to the first bidder. There are a few factors that influence the price of a diamond and the most effective way to know the worth is to get it appraised. But does an appraisal value equal the price of what you’ll receive in the resale market? Not exactly! Keep reading to find out the difference between a diamond appraisal and the resale value.
What is a Diamond Appraisal?
Put simply, a diamond appraisal is an analysis of your diamond that includes details about the gem and its value. Most diamond appraisals are done by certified appraisers who go over your jewel thoroughly, marking down specific details, such as size, carat weight, clarity, and color. The condition, aging, and branding of the diamond is also taken into account. Diamond or jewelry appraisals are most often performed for insurance purposes and are often inflated to protect the value of the diamond if it was ever lost or stolen.
What is a Diamond Market Value?
The diamond retail value, also known as the current replacement value or true market value, is an important tool to determine what the diamond resale value will be. The market value of a diamond is determined by thinking about what the diamond would be worth if sold new. The value takes into account labor, markup, and any premium which goes into the process.
The appraised value, mostly used for insurance purposes, is much higher than the retail value but won’t be the cash value you sell the diamond for, because of labor and other market considerations. The secondary market value is much more varied, as third-party buyers may buy your diamond for above retail price. All three of these price considerations can be used to find the diamond resale value.
Factors that Determine Diamond Resale Value
There are four major categories to know when trying to discover the inherent worth of your diamond, known as the four Cs. These four c’s include
Clarity measures the number of inclusions, or flaws, in the diamond and is graded on a scale. Color is used to determine the yellow hues present in the stone, which would keep the diamond from looking colorless. Cut refers to the shape of the diamond; in general, you want a diamond whose cut allows it to reflect more light. Finally, carat is the weight of the stone and is equal to .2 grams. Larger diamonds will have a larger carat value than smaller diamonds.
Do I Need an Appraisal or Grading Certificate to Sell My Jewelry?
You don’t need either an appraisal or grading certificate to sell your jewelry, including your diamonds. In fact, many buyers don’t particularly care about the appraisal because of the inherent markup in price which accompanies it.
Most buyers will want to see the diamond for themselves before buying it, to avoid purchasing a stone that is not “up to snuff.” You’ll still probably want to get your diamond appraised to get a rough estimate of the price and ensure you’re not ripped off by a buyer, but these things are not essential simply to sell your diamond.
How Can I Sell My Diamond for the Most Value?
There are a few things you can do to improve the price of your diamond. For example, you can restore the stone, clean it, or document it. Restoring your diamond can be done by a professional and is recommended if your stone is old or worn out. Restoration can help make your diamond look brand new again and fix breakages or cracks.
Another way to ensure you receive the most value for your diamond is to sell to a reputable buyer, like a diamond buyer. There are many selling options out there, but not all options will provide the same value. A reputable diamond buyer works exclusively in the diamond buying industry and will have the most knowledge when it comes to the current diamond market and resale value.