5 Common Myths About Diamond Buyers — And The Truth Behind Them

The decision to sell diamond jewelry is often difficult to make. However, there comes a time when it’s better to part ways with your precious jewelry than hold on to it.

Perhaps you need quick cash, and your diamond is the only asset you can quickly liquidate. Or, it’s an heirloom jewelry that has since lost its sentimental value.

And what if things didn’t work out with your romantic partner? Well, selling your diamond engagement ring can be a profitable way to erase their memories.

But before listing your diamond jewelry for sale, you may wonder if you’ll get a fair bargain. These fears often spring from one of the most common myths about diamond buyers – that every jeweler is actively trying to scam you.

The reality is that jewelry scammers exist. But so do genuine buyers.

In this post, we highlight the five common myths about diamond buyers and the truths behind them.

Every Diamond Buyer Is Trying To Scam You

As mentioned, the jewelry industry has its fair share of scams. But the good guys exist too.

In fact, it’s easier to find legitimate diamond buyers than run into a scammer. Simply research the store’s reputation by sampling online reviews.

Besides, most fraudsters usually display unmistakable red flags.

Watch out for jewelers who offer unrealistically high offers. That’s especially if you’re selling your diamond through consignment. If the deal sounds too good to be true, then it probably is.

Similarly, beware of unrealistically lowball offers. Some unscrupulous jewelers will pay you rock-bottom fees, only to reappraise your diamonds at a higher value.

Employing pressure tactics and dismissing grading certificates are other tell-tale signs of diamond scammers.

All Diamond Buyers Are Similar

Diamond buyers come in many shapes and forms, including;

Jewelers

Jewelers are perhaps the most popular diamond retailers.

Many jewelers offer immediate payouts after validating your diamond’s worth. Some sell via consignments, displaying your jewelry store alongside their inventory until a buyer comes along.

Private Buyers or Giftors

Jewelry experts generally discourage selling diamonds privately due to the risks involved.

But if you can find a trusted private buyer with a reasonable offer, then by all means sell to them.

Jewelry Collectors

Collectors typically offer competitive prices, especially for rare diamonds.

To stay safe, insist on meeting the individual in a secure, open space.

A Buyer Can Guarantee Your Diamond’s Original Worth

All pre-owned diamonds are essentially secondhand jewelry. Therefore, no jeweler will purchase the stone at its original price.

Note that a diamond automatically becomes secondhand the moment it leaves the jewelry store. Even if you purchased the gemstone the previous day, you’ll be hard-pressed to sell it at the buying price.

For perspective, pre-owned diamonds typically fetch 25% – 40% of their original retail prices. Some stones may shed as much as 70% of their initial purchase price.

The saving grace is that the price of brand-new diamonds usually includes high mark-ups.

Many stores factor in overheads and advertising costs when pricing their jewelry. With proper haggling, you can resell your diamond near its actual worth.

If you’re selling a diamond engagement ring, consider offering the entire package. Ring-mounted jewelry can fetch substantially higher prices than its loose counterparts.

Bigger Is Always Better

Size may matter in other retail scenarios. But when it comes to the diamond trade, it almost always counts for nothing.

Most buyers will make their offers based on the 4Cs, namely;

Cut

Cut refers to a diamond’s symmetry and polish. It impacts the stone’s brilliance, with more sparkly cuts attracting higher resale values.

Color

Before selling your diamond, a buyer will assess the stone’s placement on the color scale. The scale ranges from D to Z.

Colorless diamonds are closer to D, whereas those with brownish or yellowish tints are graded closer to Z. Stones with less color are worth more.

Clarity

Clarity denotes the presence of inclusions or blemishes. Fewer inclusions increase a diamond’s value and, ultimately, its price.

Carat

Carat refers to a diamond’s physical weight, equal to 0.2 grams.

A diamond’s value soars disproportionately as its weight increases. In other words, the price of a 2-carat diamond can be thrice that of a 1-carat stone.

Buyers Are Only Fixated On the 4Cs

While your diamond’s resale price largely depends on the Four Cs, smart jewelers will consider many other factors.

For instance, natural diamonds typically fetch higher prices than lab-grown diamonds. That’s especially if they’re ethically sourced.

A diamond’s fluorescence will also impact its value. Diamonds that glow strongly under ultraviolet (UV) light may appear foggy, making them less attractive.

Besides, the presence of a grading certificate will undoubtedly impact your diamond’s resale price. A grading certificate outlines a diamond’s 4Cs and other physical attributes, making it crucial in determining the stone’s worth.

Lastly, any customizations will reduce your diamond’s worth.