SPECIAL REPORT: Selling Your Diamond - Truth About Pricing
Understanding How Much Your Diamond Is Worth
This short article will help you understand how diamonds are evaluated from a wholesale level. If you are thinking of selling your diamonds, this information may help you make the right decision for selling your items.
If It's Unwanted, Unloved Or Not Worn, It May Be Time To Sell Your Diamond.
If you are considering selling your diamond, this article will assist you in understanding the process that takes place when a diamond buyer and grader evaluate your diamond for purchase.
Several factors determine the true value of your item. You are probably curious about how a diamond buyer will price out your diamond for purchase. You likely know the retail price of your item and you may also have an appraisal report as well.
While this information is important, these retail numbers can be quite different from the offer you will receive if you choose to sell your diamond. In order to understand how a diamond is valued from a retail standpoint, it helps to know how a diamond travels from the mine all the way to the jewelry store.
The Diamond Pipeline - A Journey From The Mine To Retail.
Your diamond has made quite a journey from deep in the earth to your finger! Starting as a rough pebble sized crystal, your diamond was mined from the earth typically from places such as Africa, Canada, Australia or Russia. These rough crystals are sorted by size, colour and clarity usually right at the source mine.
From there, these rough diamonds are ready for cutting and polishing. These facilities, usually located in places such as India and Belgium specialize in transforming these rough stones into beautiful and stunning finished diamonds. This amazing transformation takes a great deal of experience and skill. Once cut and polished, these diamonds are once again sorted by size, colour and clarity. Finally, these polished diamonds are ready for resale to diamond wholesalers.
Diamond wholesalers sometimes select certain stones to be graded by laboratories such as GIA, EGL or HRD. These companies work to provide a detailed and accurate report on each diamond. After having a diamond graded, a wholesaler can in turn now sell to boutique and large jewelry store chains. These retailers will select the diamonds that can specifically meet the requirements of their customers. Retail diamonds are either sold loose or in a mounted jewelry setting.
It is important to understand that throughout the "Diamond Pipeline" process every company involved along the pipeline sells the diamond at a higher price to the next entity in order to realize a profit. A diamond may go through 5 - 10 different entities even before it reaches your finger! And of course, as you likely guessed each one of these companies charge for their services continually adding the end retail cost of the diamond.
So, at the end of the pipeline a diamond that may have sold for $1,000 directly from the mine may actually retail for up to $10,000 or more depending on the characteristics of the diamond.
How Much Will I Receive For My Diamond?So, how does all of this affect the selling price of your diamond? As CashForGoldCanada.com is a diamond buying company, it has access directly to the wholesale market. Diamond cutters and wholesalers make their inventory available on exclusive diamond exchanges only approved for cutters, wholesalers and dealers. When your diamond arrives are our offices, we first grade the characteristics of your diamond. We then carefully examine these details and compare them with diamonds of similar quality already being offered on the wholesale market. So for example, if you had a GIA graded Princess cut 1.25ct stone of F colour and VS1 clarity grade, we would look at diamonds with these same characteristics being offered on the wholesale market.
The payout value we provide is based on wholesale dealer pricing of similar stones being offered on the wholesale marketplace. CashForGoldCanada.com does NOT retail your diamond in a jewelry store. We simply sell back into the wholesale dealer market.
You may be asking the question "What about the retail price I paid?? If my ring was $7000.00 at the jewelry store, why am I only being offered $2500.00? It is because there is no accounting to what a retailer may have charged you during a retail sale. Jewelers will typically markup their product up to 1000% or more over wholesale value. These large markups help retail stores pay for retail rental space, security, insurance and sometimes even a high commission sales staff which is all worked into the retail price of a diamond.
Important Information On Retail Jewelry Appraisals.
Retail appraisals are definitely important. It is good to have a detailed report of what has been purchased. But when looking at these retail appraisals, the values are often inflated well above realistic dollar figures. Let's be honest, let's say you just paid $7500.00 for your wonderful diamond ring. Why did a jewelry store give you an appraisal that states the value at $10,000 or maybe even $15,000? It just doesn't make sense. There is literally no retail item sold on earth that automatically doubles in value after purchase.
Many jewelry stores use this as a sales tactic to make it appear that the buyer is getting an amazing deal. Unfortunately, it is a retail jewelry myth.
How To Sell Your Diamond.
So, at the end of the day where does all of this leave you when it comes to selling your diamond at a fair price? There are a few options. First, there is selling to friends or family at a discount to your retail cost. There is also the option of selling online on websites such as eBay, Kijiji or Craigslist. These options can work but will usually take time and quite a bit of effort to be successful. As well, it is important to be aware of the long list of scam artists that patrol these types of websites to take advantage of online sellers.
This is where CashForGoldCanada.com Diamond Buying Service can help. If you are not interested in selling via the above options and you not interested in haggling over pricing, let us evaluate your diamond and send you a competitive offer.
We are an A+ accredited member of the BBB (Better Business Bureau) and our company has been in business since 2002. We offer prepaid, trackable and fully insured (up to $10,000) kits for you to send your items to us safe and sound.
Experience a safe, reliable and fair service from the experts at CashForGoldCanada.com
Any questions? Please do not hesitate to contact us any time. We look forward to hearing from you.