There are 3 Main Factors that determine the Secondary Market Prices on Diamonds and Diamond Jewelry......
#1 Diamond Certification
It is very important that the difference between diamond grading laboratories is understood. There are numerous diamond grading labs, and the list continues to grow. Some of these labs provide detailed, accurate information, but unfortunately grading standards greatly vary across the different diamond grading labs and companies.
In truth, we find that some diamond grading labs can be as much as 2-4 grades off from the highly regarded and trusted GIA standard (the “industry standard”), GIA is a Diamond Grading Company that we never question their diamond grading, nor does anyone else in the industry. If a diamond has been purchased Retail that has received a grading report from another diamond grading lab, odds are the Certification has been exaggerated, and in most cases, by ALOT!
Some of the labs you will see certifications from include:
Why GIA Certifications are the "Gold Standard"
At Texas Gold and Silver Buyers of San Antonio, we use the GIA standard as the basis of our evaluations,
There are a number of reasons why GIA certifications will hold more value compared to the Retail Price originally paid:
#2 The Individual Characteristics of the Individual Diamond or Diamond Jewelry Piece
Every single diamond is unique and there are a variety of factors that can and will affect the value of your item. The universal method for determining diamond prices is referred to as the "4 C’s" - (carat, color, cut and clarity)
• CARAT refers to the weight of the diamond, which also translates to size
• COLORLESS STONES bring the higher prices
• CUT determines the brilliance of the diamond
• CLARITY refers to the number of inclusions in your stone (Carbon Spots, Fractures, etc)
Factors that may also have a negative impact on the price will include any imperfections, any damages the stone may have sustained after wear. Fluorescence is also another large factor that is rarely discussed or openly disclosed when a larger diamond is being sold to you in a retail setting.
#3 The Strength of the Secondary Market For Your Particular Item
Market prices fluctuate over time as the economy, supply and demand and fashions change. This is very similar to the Precious Metals Market in many ways, other than the fashion trend aspect to do with Diamonds (Different Shapes and Fancy Cuts). What is the largest difference about Diamonds is the industry at the very top is basically monopolized by one super conglomerate company, known as De Beers. They store vast amounts of Diamonds in Vaults and can create a surplus or shortage of Diamonds just by releasing large amounts or restricting large amounts. At the end of the day, Diamonds are not rare, they are hunks of Carbon, and not in any kind of short supply. So Diamond Value in the Secondary Market heavily correlates with supply/demand, and changing trends and what is in high demand by consumers. The good news is that at Texas Gold and Silver Buyers of San Antonio, we CLOSELY work with some of the highest paying Diamond Buyers in the World, therefore we are able to pay our customers TOP DOLLAR on Diamonds and Diamond Jewelry.
The value of your diamond jewelry will be based on the strength of the second hand market for that particular item at the time of sale. On larger Diamonds we will contact our Gemologist/Diamond Buyer on the spot and get an up to the minute Top Dollar Quote on your Diamonds and Diamond Jewelry.
A very good example of demand, is diamond shape. Certain diamond shapes have proven
more popular at certain points in the past. Oval shaped diamonds were particularly popular in the 1970s- early 1980s. Currently, round diamonds are in the highest demand. Price values will vary depending on the market conditions at the time you choose to sell. We will always go above and beyond to get you the very best price possible.
THE VERY IMPORTANT DIFFERENCES BETWEEN RETAIL AND RESALE VALUES
Very similar to when you purchase a car or another luxury item, diamonds and diamond jewelry lose some of their value when it comes to selling in the second hand market. You can generally expect to get around 25%-40% of the original retail price depending on the condition of the diamond or jewelry item. In general, Diamonds should be originally purchased because you love them or treasure them, NOT as investment purposes. But at Texas Gold and Silver Buyers of San Antonio, we understand that situations arise (divorce, need for money, etc.) and we are here for you to get you the most for your diamond in the secondary market, despite the drastic and sometimes unfair retail prices that you were charged when buying new.
HOW CAN THE SECOND HAND VALUE OF DIAMONDS ONLY BE 25%-40% OF THE RETAIL PRICE?
There are numerous reasons why the retail price is higher than the resale price and we are happy to explain them. The retail price of the diamond or jewelry is made up of the wholesale price (the price the jeweler paid) plus a markup to cover the retail costs such as the rent of their retail location, employees, labor, profit and overhead, etc. Sales Tax is also added to all items that are sold in a retail setting and can approach as high as 10% in the US. If your Diamond or Diamond Jewelry has a grading report or an appraisal this would have also been factored into the original retail price and you won’t get all of this back when you sell your item. Bottom line, Diamonds in the Retail Setting are grossly marked up, and it can be argued in a Retail Setting, that Diamonds are among the worlds most marked up item.
WHY DO SECONDARY MARKET PRICES (RESALE PRICES) DIFFER FROM JEWELER'S APPRAISALS?
Jeweler’s appraisals are an excellent way to get more information (the 4 C’s) on your diamond, or diamond jewelry, which is then very useful when it comes to getting a more accurate price estimate from Texas Gold and Silver Buyers of San Antonio. However, it is important to remember that the "4C's" information and any price quoted from a jeweler’s appraisal is based on the opinion of that individual appraiser which may and more times than not differ greatly from GIA grading standards. A jeweler’s appraisal will provide you with a replacement retail value for insurance purposes – to cover loss, theft or damage and this has zero relationship to the price of the item in the second hand market. Appraisals are based on Retail Pricing only.
We Buy ALL Gold, Silver, Platinum and Palladium: Bullion, Coins, Jewelry, and Scrap. We Pledge a Hassle-Free, No Hassle FREE Quote. Our devotion to Customer Service is unmatched in the San Antonio Area! TOP DOLLAR PAID EVERYDAY.
Texas Gold and Silver Buyers of San Antonio
3435 Thousand Oaks, Suite 107
San Antonio, Texas 78247
Thanks for stopping by our blog. My name is Evan and I am the owner of Texas Gold and Silver Buyers in San Antonio. From time to time I will post blog entries to help educate and inform our customers and potential future customers on all aspects of Precious Metals (Gold, Silver, Platinum & Palladium!)