Diamond specialists are frequently questioned if diamonds have a resale value or not. It’s wonderful to know that diamonds may be sold for money again. Multiple factors influence how much money you can recoup from your diamond. Please continue reading to learn more about the resale value of diamonds, how to determine the value of your diamond, and where to receive an exact price for your diamonds. Nowadays, the value of diamonds seldom rises. Everything from where and when you acquired it to whether or not you got it from a “friend” in the industry or from a chain store in your local mall will play a role.
Except for specific coloured diamond categories, prices have fallen in several categories over the previous decade or so. Only a genuinely excellent coloured diamond (not one with a colour modifier like brown or brownish) can make you money. The value of a diamond ring, a family treasure, or even a single stone cannot be underestimated. Simple supply and demand dictate that there is always a market for selling diamonds. There is a widespread belief that diamonds are wonderful investments because their value increases over time. But this has not been true for the bulk of diamonds in circulation in the last 10 years or more. Most diamonds have depreciated throughout this time span. The value of a diamond plummets as soon as you leave the jewellery store, just as when you drive a brand-new automobile off the lot.
A diamond, like a vehicle, is a depreciating asset since the moment you acquire it, it loses a significant amount of its worth. Think about precious metals like silver and gold. Because you may hold coins, sell them at any moment, or even exchange them afterwards, the market for them is incredibly liquid and fungible. Because of their rarity and beauty, diamonds have long been a topic of debate: do they appreciate in value? This topic is frequently posed by our clientele, as one of the world’s leading diamond specialists. When it comes to investing in diamonds, there is a lot of contradicting information available online. Keep reading to find out if diamonds do, in fact, appreciate in value, as determined by our professional gemmologists.
DO DIAMOND PRICES INCREASE OVER TIME?
The quick answer is that the value of most diamonds does not increase over time. Only a very tiny subset of diamonds sees a gain in value, as we’ll see in a moment. Many people believe that diamonds become more precious with time because they are scarce. The resale value of most diamonds is lower than the retail value, thus they aren’t good investments. If you’re selling a diamond, you may expect to get anywhere from 25% to 50% of the retail price, on average. Second-hand diamonds, on the other hand, have seen a price reduction.
So why does the value of diamonds go down? Your diamond’s value plummets the moment you leave the jeweller’s lot, much like a brand-new automobile. For this reason, a diamond’s value chain includes more than just jewellery retailers who sell it to you. As a result, while diamond retail prices may be high, the diamond resale market rate is far lower. The resale value of a diamond is the price at which it may be exchanged for another. However, this does not take into account any profit produced by a jeweller. If your diamond is insured by the jeweller you purchased it from or a private insurance firm, this is the amount that you are covered for. Because of this, the diamond’s insurance value is almost always higher than the diamond’s market value.
Both to give the impression that you got a good deal on your diamond and to raise your insurance rates are served by this practice. The retail or resale value of your diamond is not directly related to its insurance value. The retail value of a diamond is the price you paid for it in a jewellery shop. In Business Insider’s estimation, big-box jewellery retailers jack up their diamond pricing between 100 and 200 per cent. In order to cover slow-moving inventory, running costs, and to make a profit, jewellery retailers raise the pricing.
The value of my diamond is an important question to ask yourself
The jeweller may have given you an evaluation value when you purchased the diamond. Therefore, in order to avoid having to pay any more money for a new diamond, the appraised value is usually greater. It’s likely that you’ll feel like you got a good deal on it as well. However, you’ll have to pay a higher insurance rate for the piece of equipment.
Diamond Jewelry’s High Purchase Value: Anyone who has been in a jewellery store knows how expensive diamond jewellery can be. Business Insider reports that jewellers typically mark up their diamond jewellery by 100 per cent to 200 per cent.
In order to pay inventory holding costs, operating expenses, and a profit, jewellers charge exorbitant markups. As a result, your diamond is more than likely to be worth less than you paid for it. If you decide to sell the diamond, the resale value is the amount of money you will receive. Diamond prices have fallen, which means that the resale value is often far lower than what you bought for the piece. Diamond jewellery, on the other hand, often sells for between 25 and 50 per cent of its original price. As a proportion of the appraised worth, this is much less.
A diamond, like a vehicle, is a depreciating asset since the moment you acquire it, it loses a significant amount of its worth. Think about precious metals like silver and gold. Because you may hold coins, sell them at any moment, or even exchange them afterwards, the market for them is incredibly liquid and fungible. These investments may even appreciate and serve as a hedge against inflation during that time period Diamonds, on the other hand, are an exception since the secondary market for them is virtually nonexistent.