You have a diamond, and you want to exchange it for a better stone or another piece of jewelry. Let’s see what you should pay attention to when trading in your diamond.
Read the Exchange Policy for Your Diamond
Before you trade in a diamond for another piece of jewelry, make sure you read all the documentation that came with the stone when you purchased it.
Pay special attention to the store’s exchange policy – oftentimes, there is an option to trade the stone in for another one during a certain period after the sale.
Once this term has expired, you might not be able to exchange your diamond, or you may be able to do so at a reduced value.
Selecting a Store to Trade In Your Diamond
In case you are not exchanging your diamond at the store that originally sold it, you will need to decide where to trade the stone in. Some vendors don’t do exchanges, whereas others are more receptive to such deals.
One thing to keep in mind is that small stores that are run by independent jewelers may be more flexible and willing to negotiate on price, discounts, and other terms of the deal.
Big stores that are part of chains often have more rigid policies, and their employees do not have much leeway when negotiating exchange terms (if they negotiate at all).
Have the Diamond Appraised
If you are not sure how much your diamond is worth, it may be a good idea to have it appraised by a professional. Make sure that you understand what exactly the appraised value means, however.
For example, if the valuation is based on the retail market price of the diamond, keep in mind that this number will be higher than the trade-in value a jeweler will offer you.
It is crucial for you to know how much your stone is worth so you can assess how good of an exchange deal you are getting.
What Exchange Price Can You Get for a Diamond?
As already mentioned, you won’t be able to exchange your diamond at a trade-in value that is equal or even close to the stone’s original price.
In fact, you may be offered 50% or less than what you bought your diamond at. (Getting a trade-in value that is around 50% of the original price is pretty common for exchange deals.)
Let’s see an example: If you bought your diamond for $5000, a jeweler may tell you that the stone is not worth more than $2500 when traded in; this means that if you want to exchange it for an item that costs more than this amount, you will need to pay the balance in cash.
Calculating Your Diamond’s Trade-In Value
As you’ve already seen, the most important piece of information you need to find out when discussing an exchange offer is the trade-in value of the diamond.
For example, if you are told that the exchange value of your stone is $2000, then you will have to pay an additional $2000 if you want to exchange the diamond for another that is sold at $4000.
It is very important to ask how much you will have to pay in cash, in addition to the stone your trading in – sometimes, a deal may not turn out to be as good as it sounds.
For example, suppose that your stone is valued at $2000 and you are told that you will have to pay an additional $2000 for a diamond with a price tag of $4000 that is discounted by 25%.
So, in reality, when you factor in the discount, this stone can be bought for $3000 in cash. Since you are asked to pay $2000 when you exchange your old diamond, you are actually giving the stone up for a value of $1000, not the $2000 you are told it is being valued at.
In sum, pay attention to discounts and other deal terms in addition to the trade-in price so that you can determine how good of a deal you are getting.
One last piece of advice: Don’t forget to clean your stone and its setting before you go to the store – a piece of jewelry that is not presentable will give the buyer another potential argument to press you to accept a lower exchange value.