HOW MUCH CAN I SELL THIS DIAMOND FOR?

This is a common question I get all the time from folks I’ve done appraisals for. They see the high price on the “Retail Replacement Value” line and think “boy I’m rich”. Not true, the retail replacement value is for insurance purposes only and is the highest value that can be placed on a piece and is not what you can sell it for, that is fair market value. A lot of times it’s in the process of a divorce and they’re splitting the assets, and I will be asked for an expert opinion of value by the court for the purpose of determining what each one will get and that's liquidation value.

Anyway back to the question, “how much can I sell this diamond for?”. If its in a gold ring just weigh the ring and see how much it weighs in grams. Then look at the karat weight (10K, 14K, 18K) and take the percentage of pure gold in it (18K=75%) times the spot gold price and divide by 31.1 (the number of grams in a troy ounce).Now you have the price per gram. Just multiply per gram price times the number of grams in the weight and you have a gold value.

Now the diamond. You better have a good appraisal if you want to sell that diamond. All diamonds are sold by the 4 C’s, carat weight, color, clarity and cut. The weight is done with a diamond scale before it is set or by formula if it is mounted. The color and clarity is done by a qualified diamond appraiser. A Graduate Gemologist like me is the best to do the appraisal. The better the appraisal the better the price you’ll get. If you have a GIA certificate on the stone then that is the ultimate pedigree of the diamond.

Now you’re ready. The buyers of diamonds are people just like you or in the diamond and jewelry business. A pawn shop could care less about certificates and appraisal and will give you the lowest price, usually $1 a point, (1.0 ct is 100 points so $100) so stay away unless it is a life or death situation. There are two good bets to sell the stone, 1. is by yourself to buyers and 2. is to sell on consignment through a jewelry store that you trust. Since most diamonds sold today are sold online you could sell on Ebay and usually get a pretty good price especially with an appraisal and/or certificate.

You will not get anywhere near what you paid for it unless it was 50 years ago. But you will get a good price if you are patient, reasonable and fair. Don’t take the first offer since many buyers are looking to steal some diamonds because folks don’t know what to do and take the low ball offer. Be patient and tell the buyer you need to discuss it with your significant other and you will get back to them. Get their number and call them back if they are the only offer you get and counter offer. Never accept the first offer!

On Ebay you control the price by setting a minimum and determining what the sale price will be, or let it go to bidding and see what you can get. It’s a lot like gambling.

Determining a price should be easy, just take your appraisal or certificate and start looking up comparable stones on the internet, same color, clarity and carat weight. The only thing missing is the cut and you can assume it is at least average or it would be noted on the appraisal. Assume average cut. Ebay has hundreds of comps, all the online diamond dealers have online comps and it’s good to jot down a few for questions from buyers. Now you’re ready to sell your diamond for the best possible price. You can assume the price will be about 20 to 30% below the retail price you paid not the retail appraisal, sometimes lower depending on the market and your needs.

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