Let’s see what options you have for selling a diamond and how they compare:
Selling Diamonds Online
Selling your diamonds online is one of the easiest ways to turn your stones into cash.
You can post an ad, or you can go to an online-auction site and try to get as much as possible for your diamond.
Just remember that if you want your stone to fetch a good price, it is recommended that you support its value with official documents such as a third-party appraisal or a diamond grading report.
Selling Through a Jeweler
Some jewelers can sell your diamond on consignment at their physical store or on their website. You will be charged a fee for this service, and you will need to leave the stone with the jeweler (if it is going to be sold in the store).
You may also need to specify a minimum price for the item. How soon the diamond will be sold can depend on a lot of factors, including how prominently your stone is displayed in the showroom (or at the jeweler’s website).
Selling to diamond dealers is a quick way to get cash for your diamond. (Many jewelry stores or independent jewelers act as dealers.)
However, be aware that you will get a lower price than if you sell directly to the end consumer or if you sell through a jeweler.
The reason for this is that the dealer will have to resell your stone and will thus offer you a lower price in order to make a profit in the process. This option is quicker than a consignment sale but offers less money.
Auctioning Your Diamond
We already mentioned that you can sell your diamond at an online auction, but you can also auction your stone off through an auction house or a jeweler that provides such a service.
Keep in mind that compared with other options, such auctions are relatively expensive in terms of fees, but the payoff may be higher.
This is why auctioning is recommended for unique pieces that could attract the interest of a number of potential buyers, who are likely to bid up the initial price.
Pawnshops may buy your diamond, but do not go there if you are not sure where your stone stands in terms of quality characteristics.
The people working at pawnshops are experienced in valuation and negotiation, and if you do not understand what drives the value of your diamond, you may not get the best price.
It is much better to first have your stone appraised or graded by a diamond lab (such as the G.I.A.) and use the grading/appraisal certificates to negotiate a better price.
Some vendors include a buyback clause in their sale terms when you purchase a diamond.
If your stone comes with a buyback policy, it will state how much cash you could get for the diamond if you decide to sell it back to the vendor and under what conditions such a deal is permitted.
Buybacks are usually done at a percentage of the original price and are often allowed only for a specified period after the date of purchase.
Trade-In / Exchange
Trading in your diamond for another piece of jewelry is a common option jewelry stores offer. The value assigned to the stone by the jeweler will count towards a purchase made by you at the store.
If you buy an item that is more expensive than your diamond, you will have to pay the difference in cash. Such a deal is a good option if you don’t need cash and are willing to buy another piece of jewelry.
Be sure to first check with the jewelry store from which you bought your diamond – depending on its policies, the store may offer you a better deal than what you might get elsewhere. Some stores, however, do not accept trade-ins.