These days, more and more people are becoming smart buyers especially when it comes to valuables such as gold and diamonds. Most of us care about how much we may be able to get if we ever need to sell it in the future. Unfortunately, unlike gold, diamonds’ resale value is low.

The reality is, most diamonds will decline in value over time. Immediately after you have made your purchase and leave the store, the ring is now worth 50% less than what you paid for barely a few minutes ago. Just like when you drive a newly purchased car off the lot, the value will dramatically drop the very second you walk out of the store.

Why is Diamond Resale Value So Low?

One of the factors that affect diamonds’ resale value is the retail mark-up. Jewelry retailers, like those in most other industries, buy their products at wholesale and sell them at marked-up prices – some a lot more than others.  

Unfortunately, this means that the resale value of the diamond will be much lower than what it was purchased for.  

According to Business Insider, jewellers often place 100% to 200% mark-ups on their diamond jewellery. Jewellers set these high mark-ups to cover slow-moving inventory, operating costs and of course profit. This is also the reason why jewelry shops can offer high discounts for diamond items.

As a result of the retail mark-up and the decline in diamond prices, the resale value is typically well below what you paid. Indeed, diamond jewelry will typically resell for 25% to 50% of the purchase price. And even less if your diamond does not come with a certificate.

Certificates plays a big role in determining the resale value of your diamond, specifically GIA certificate. Even when you purchase a non-certified diamond it is more likely less expensive than one that is certified. This is because a certified diamond comes with the cost of the certification.

4C’S OF DIAMOND

GIA certificates will not only states the serial number of your diamond, but more importantly the 4C’s. The 4Cs is the universal method for assessing the quality of any diamond, anywhere in the world. Every diamond that comes with a certificate will state the diamond’s 4C’s. But what is the 4C’s? Here is the rundown.

1. Color
GIA’s diamond color-grading system measures the degree of colorlessness. The less colour, the higher the grade. The GIA diamond color grades range from D (colorless) to Z (light yellow or brown). 

2. Cut
Cut actually refers to the diamond facets’ ability to transmit light and sparkle so intensely, not the shape (round, oval etc).

3. Clarity
Diamond clarity is the assessment of small imperfections on the surface and within the stone. However, it is impotant to keep in mind that diamonds are as unique as our fingerprints. Natural imperfections are inevitable.

4. Carat
A diamond’s carat is the diamond’s weight, not its size. Also, bigger doesnt necessarily mean better. In fact, a high carat diamond with a poor cut may look smaller than a diamond with a smaller carat and a very good cut.

Jewel Cafe

We can offer instant cash for your diamond jewelry, with or without certificate with the best price!

We can accept diamonds that are 0.3 carats and above without a GIA certificate and only 0.2 carats with a GIA certificate.

If you have any old gold, white gold, platinum or even silver come on by to Jewel Cafe and get instant cash for your items!

We can accepted old, broken, even small pieces of jewelry.

You can also just come by for free estimation of your item.

We look forward to seeing you. 🙂