How To Sell Diamonds For Cash

Selling your diamond jewelry can be an easy and fast way to make some extra cash real quick. From engagement rings to loose diamonds, there is a massive market for these precious gemstones.

Knowing your way around can help you make sure you get the best deal possible. This is especially important if you’re not very familiar with how to sell diamonds. Don’t worry – that’s what this article is for.

We’ll be looking at everything that you need to know to sell your diamond at the best price possible. From how diamonds are graded to the selling options available to you, we will uncover everything you need to know to make sure the sale is a resounding success.

Where To Sell Diamonds

When it comes to selling your diamonds, there are a number of different routes you can take. The one you take will largely depend on your circumstances.

Having said that, it is still important to weigh the pros and cons of each one so that you can make the most money out of the diamond you want to sell.

Let’s take a look at the most common options available for selling diamonds:

Sell Your Diamond Online

Selling jewelry online is perhaps the easiest option out of all. There are many different companies to choose from.

Most offer an instant quote online, so you will know pretty much what your diamond is worth in a few minutes. Free shipping is not unheard of, and the value will get confirmed once the company receives your diamond.

The price offered might be less than what you would get selling it yourself, but you can expect to receive the money in a few days. This makes online selling a great option if you need the cash fast – just remember that even convenience has a price.

Pros

  • The fastest way to sell your diamond
  • It is considered as a safe way to sell

Cons

  • You might not get the full value price
  • Make sure the package is insured to cover the diamond’s value

Learn More: Read my full Worthy.com Review.

List Your Diamond Online Yourself

After getting your diamond independently evaluated, you can try to sell it online yourself. There are many platforms where you can do so, including Craigslist and eBay.

Going down this route will generally take you more time, but it can be done. Do keep in mind that most buyers looking to spend a large enough sum of money for a diamond would rather go to a store where it can feel safer to make such a purchase, so you might need to lower the price to make the deal more attractive.

Pros

  • You can set your own price
  • You cut out the middleman

Cons

  • It can take longer to sell the diamond
  • There is more risk

Consigning With a Local Jeweler

If you’re not too keen about selling your diamond online yourself, you can approach your local jewelry store and see if they are interested in a consigning deal.

What this means is that the jeweler will hold on to the diamond and attempt to sell it as if it were his own stock. Should they succeed in selling the diamond on your behalf, they’ll be due a commission, which would be a percentage of the sale.

Look for jewelers where foot traffic is heavy and preferably one that is known for selling diamonds to ensure more potential buyers and as fast of a sale as possible.

Pros

  • People are more likely to buy from a store
  • The jeweler is motivated to sell your diamond

Cons

  • The jeweler takes a cut off the selling price
  • You might not sell it for the price you want to

Pawn Shop

One other route to consider is selling your diamond to a pawn shop. While this is a very easy way to turn your diamond into cash, it might not be the most profitable.

If you want to try your luck at pawn shops, make sure you get your diamond independently verified – you could be sitting on a gold mine and not even know it!

Most retailers, including pawn shops, will generally try to offer you what is known as dump price or lower. Dump price is roughly 40% of the diamond’s market value. Going below this price is not recommended, so do proceed with caution as you could lose out on a lot of money.

Pros

  • A fast way to sell
  • Local pawn shops make it easy to sell

Cons

  • The price will be lower than what the diamond is worth
  • You need to be prepared to negotiate hard.

How Are Diamonds Valued?

When it comes to valuing a diamond, most appraisers use the 4C’s system. This system was developed by the GIA (Gemological Institute of America) back in the 1950s.

All professional diamond appraisers use this system, so you should be wary of anyone who promises to value your diamonds without using this system. When in doubt, always ask the appraiser which system they intend to use to value your diamond.

The 4Cs system looks at four separate factors that are present in every diamond. These are color, clarity, cut, and carat weight. Let’s briefly look at each factor separately.

Color

The GIA system uses a color grading that starts at D and goes all the way to Z. A D grade is given to colorless diamonds, and these have the highest value. The more color a diamond has, the less value it becomes with a Z grading given to light-colored diamonds. A Z grading is the lowest grading when it comes to assessing color.

Clarity

Diamond imperfections, such as inclusions and blemishes, reduce the clarity of the precious stone and, with it, the value. Blemishes are usually superficial (on the surface of the diamond), such as nicks and scratches. Inclusions, on the other hand, are internal imperfections. Clarity is graded from flawless (which is very rare) all the way down to I3. I stands for Included.

Cut

Diamonds are cut and polished in different ways. This affects how much light the diamond is able to emit and how beautiful it looks, which in turn also affects its value. Cuts are graded from Excellent to Poor.

Carat Weight

Due to their relatively small size, diamonds are weighed in carats. This is nothing more than a fraction of an ounce. In fact, 1 carat works out to seven-thousandths of an ounce (.007 of an ounce). The heavier a diamonds is, the more value it has.

Selling Diamonds FAQs

What Do I Need To Do Before Selling My Diamond?

If you’re looking to sell your diamond, the first thing you need to do is to get it appraised. This will not only tell you much much its actually worth but whether it’s even worth selling it or not.

As we saw in the previous section, the surest way to get a fair valuation for your diamond is to use the GIA system since this system is used as a standard all over the world. This means that when you’re looking for an independent grader, check if they are qualified to give you a fair and true valuation of the diamond that you want to sell.

Professional graders will also have a degree from the GIA. This makes them well versed in how diamonds should be evaluated and graded, giving you a fair assessment of your diamond.

The GIA has its own laboratories with different reports available for different kinds of diamonds. Depending on where you’re planning to sell your diamond, you might also be able to get a free valuation from the buyer who will use their own valuation to make you an offer. This means that having an independent evaluation done can offer you a better perspective on the diamond’s value.

What Should I Watch Out For?

There are many things that you need to look out for when selling your diamonds. First, and this is perhaps the most important out of them all, make sure that you know the true value of your diamond. This can easily be done by getting a gemologist report. If you’re looking to sell online or to a store, do they the time to check their BBB (Better Business Bureau) rating and make sure that they are in good standing.

If the diamond is part of jewelry such as a white gold necklace or a tiffany diamond engagement ring, know that this fetches top dollar. It is equally important to look out for scams – if the deal seems to be too good to be true, it probably is and always get more than one quote to verify that what you have been offered reflects the actual best price you can get.

Don’t settle for low prices just because you need the money now – your diamond could be worth much more than what you’re currently being offered.

What Is The GIA System?

GIA was founded in 1931 and is considered to be the world’s foremost authority on diamonds. They also specialize in colored stones and pearls, and they have a very informative website that can help you understand more about diamonds.

They are a non-profit organization and offer a number of courses online and in their institutes around the world.

Get Multiple Quotes Before You Sell Your Diamond

When it comes to selling diamonds – knowing the market is always going to be an advantage. Take the time to research the current prices and always try to get multiple quotes to work out who is offering you the best deal.

While it might feel like an extra hassle to get valuations from different sources, this is one of the surest ways to understand what your piece is actually worth and can save you a lot of heartaches if you end up taking a bad deal.

Do remember that if you’re selling to a local jeweler or an online store, the person you are selling it to is a business, and just like you, they want to make as much money as possible from the deal.

This is where negotiations come into play. Never shy away from haggling – after all, it’s more money in your pocket.

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