There are many reasons why you may find yourself with the need to sell diamonds. Typically these include inheritance, divorce, and financial need. Selling diamonds can be a rather un-nerving proposition for many people. The fact that you are holding so much cash value in such a small item is rather unique to diamonds coupled with the fact that most people know very little about diamonds. This article will try to help you sort through the process of selling diamonds, how to choose a professional diamond buyer when you want to sell your diamonds, how to receive the best price for your diamond and most importantly … how to get paid immediately for your diamond.
Several options exist for an individual who wishes to sell diamonds. We will explain the pros and cons for each of these options so you can make the choice best for your situation.
- Retail Jewelry Stores
- Pawn Shops
- The Newspaper
- Friends and Co-Workers
- Internet sites such as Ebay or Craigs List
- Genuine Diamond Dealers
When faced with the proposition of selling diamonds, most individuals assume they can go to their local jeweler and sell him/her the diamond. Unfortunately this typically is not true. Retail jewelers typically do not buy large diamonds even when they have a customer who wishes to buy one. When a consumer goes into a jewelry store to buy a diamond, most jewelers will need to call a diamond dealer and request several stones be shipped to the store on “consignment memorandum”. When the store receives the diamonds, they call the customer to come in and review the stones. If the customer chooses one, then the retail jeweler makes a profit and sends the rejected stones back to the diamond dealer along with payment for the stone that sold. So, what does this mean when an individual wants to sell a diamond? Since the retail jeweler is not a diamond dealer, the best that some of them will do is to offer to put it in their store on consignment. However, the most they typically will give you is the same or a lesser price then they can get from a diamond dealer. This fact, coupled with the uncertainty of how long it may take to sell the diamond, makes the retail jeweler not a very good choice for an individual who wishes to sell a diamond.
Pawn Shops offer the seller immediate payment. The large national chain pawn shops often end up selling the diamonds they buy from the public at “diamond tenders” held in the diamond districts in New York, Los Angeles and Chicago. The bottom line is that pawn shops typically pay less than other selling avenues available to you, but do provide for immediate payment. This category includes those buy/sell retail jewelry store that are essentially pawn shops in disguise.
One may be tempted to advertise in the classified section of the local newspaper. Although this may seem like a good idea, it can potentially lead to disaster. This author has heard numerous stories of people being robbed, diamonds being switched, payments with counterfeit cashiers checks and other such horror stories when using this option. I highly recommend that you do not pursue this avenue to sell diamonds.
If you have a friend or co-worker that is looking for a diamond or piece of jewelry such as the one you wish to sell, this is the best option for you. It is a win-win situation as they can save money and you can sell it for more through this avenue than you can anywhere else. However make sure that you are paid immediately or that you work out a payment plan that is a legally binding contract. It is never any fun to ruin a friendship or create anxiety at the workplace due to a deal that goes sour.
These internet sites are looked at by millions and millions of potential buyers every day. If you have a GIA certified stone, this may be a good option for you when you wish to sell diamonds. The potential problems that may arise by this avenue include counterfeit checks, return of merchandise and other such disputes. In the case of Ebay, many potential buyers may be wary of someone who is not an experienced seller. The other problem is that the potential exists for the buyer to receive your diamond and then state that it was not genuine … because they switched your stone for a simulant.
Prior to the Internet, it was very rare that most people had access to a genuine diamond dealer. Due to the discreet nature of the business, most diamond dealers prefer to remain anonymous. Even if you go to the diamond districts of New York, Chicago, Los Angeles or Miami, it will be difficult for the average person to truly meet a professional diamond dealer. The street jewelers will offer to buy your diamond, but then immediately sell it to the diamond dealer in the office way above the street.
However, the Internet has provided the average person the ability to sell diamonds directly to a genuine diamond dealer. Although a diamond dealer cannot pay you the price that was paid for your diamond at a retail store, he/she should pay you the cash market value for your diamond. Diamond dealers use a pricing diamond guide called the Rappaport Diamond Report. This guide is updated weekly and reflects the market value of diamonds for all the various colors, clarity’s and sizes. Rounds are always the most expensive, while fancy shapes fluctuate due to the popularity of the shape at the time.
There is a difference among diamond dealers and how they will pay you. Many dealers are focused on a small market while others like us at www.HamiltonYorkEstateBuyers.com deal across the world with a large variety of clientele. This provides us with the ability to offer the highest cash price for the diamond our customers wish to sell. We focus on large diamonds and offer the absolute safest way for our customers to receive immediate payment with absolutely no risk. For values over $35,000.00 we meet our customers in their bank and pay with an immediate direct wire transfer. This transfer of funds only takes a few minutes, and only after you banker informs you that the funds are securely in your account, do we take possession of the diamond. If you wish to receive an immediate quote, simply fill out our Sell a Diamond form and we will call you with our best estimate based on the information you provide. If you wish to sell diamond jewelry, please fill out our Sell Jewelry form. Lastly, if you are interested in selling a watch, please fill out our Sell Watches form.
We highly recommend that you not send your stone to a dealer whom you do not know for consignment. There are simply too many ways for a loss to occur. Additionally, we highly recommend that you do not send your stone to a dealer who is not a member of the Online Better Business Bureau with a perfect rating. You should ask yourself why that dealer is not willing to spend the minimal money to become a BBB member … unless he has other motives.
Our next article in this series is titled “The Role of Diamond Brokers in Buying or Selling Diamonds”. We hope you find this both interesting and educational.