Judging by classified ads like those in The Trading Post, there are always people selling diamond engagement rings. The most common cause is that the engagement or wedding was called off, leaving the would-be bride or groom with an expensive ring, along with all the emotional baggage attached to the ring.
We actually get quite a few calls and emails from people wanting to sell their diamond engagement ring or jewellery. Sometimes they’ve upgraded the diamond, other times they need the money, but most commonly, the engagement has been called off.
Unfortunately, none of these calls or emails have ever resulted in us buying the diamond or engagement ring, and the advice we usually give people is to either take it to a valuer and speak to them or contact the store you bought it from, as they most likely deal in the kind and quality of ring that you have previously bought from them.
However, it’s not that we’re adverse to buying diamonds from the public, it’s just that none of the diamond offered to us would suit our inventory or our target market. For example, if someone came off the street today, and offered to sell us a 1ct F/SI1, AGS 000, we’d have no hesitation to buy it – and we’d pay good money for it. However, the story would be different if someone came off the street and offered us a 1ct H/VS1, very good cut, certified by a lab we’d never heard of before.
Good Selling Begins With Good Buying
Buying a diamond engagement ring is usually a very emotional purchase, but that doesn’t mean you have to get ripped off by buying a ring that looks good in the store or with a nice design, but is worthless. Below are some tips that I think I would consider if I was buying a diamond engagement ring:
- Certificates add a lot of resale value to your diamond, especially GIA or AGS. However, that shouldn’t preclude certificates from other labs or uncertified stones, as long as they are accurately graded. You can confirm the grading by going to an independent appraiser.
- Make sure the diamond is eye-clean if buying an SI1 or SI2 graded stone.
- Learn a little about diamond pricing in general. Browse our site, as well as others to get an idea as to what the wholesale price for diamonds is, as well as the differences in pricing between colour and clarity grades are as well as the proportions.
- Don’t buy a pre-made ring solely based on the design of the ring. Put some effort into your purchase and buy the diamond separately, and then think about the ring.
- Remember, valuations are for insurance purposes, shouldn’t be given prior to purchase, and are not grading reports!
What Your Diamond Engagement Ring is Worth
On the free and open market, your diamond engagement ring is worth the wholesale price of the diamond(s) plus the amount of gold or platinum used in the ring.
The easiest way for a consumer to buy a ring close to the wholesale price is to buy from an online diamond broker (like our International Selection) and then buying a cast ring. This effectively eliminates the overheads or maintaining and stocking a retail store, and then goes one step further and eliminates the cost and wastage incurred when hand-making a ring.
However, the majority of people do not do this, and therefore, engagement ring buyers need to accept that what they are buying may well worth 1/2 or even 1/3 of what they are paying.
How to Sell Your Diamond Engagement Ring
Selling a diamond engagement ring is not an easy thing to do. If you have bought well (see the tips above), it makes it a lot easier, but most commonly, people have no idea as to the proportions of their diamond and/or have inaccurate grades. Therefore, it is best to give your diamond to a reputable local lab (Such as GSL in Sydney), or if you’re not in Sydney or Melbourne, ask a local dealer to send the diamond to them. If you think it’s worth it, then you can also send the diamond to an international lab such as the GIA (again, best to ask a dealer to do this).
The next step is to find an accurate wholesale price for your diamond. The easiest way to do this is to look at our International Selection which are diamonds listed at an international wholesale price, plus a small margin. Keep in mind that cut and proportions make a huge difference, so try to find a diamond as close as possible to your one.
Once you have your diamond certified, and an accurate wholesale price, then you are ready to sell. The “I’m Feeling Lucky” option is to advertise via classifieds or even Ebay, however, success may be limited as people generally don’t want to buy engagement rings from broken engagements. You will also need to get the ring professionally polished as well.
If you’ve had no luck selling via the classifieds, then it’s time to get help from a dealer or retailer. First stop would be to ask the store where you bought it from, as common sense says that they’d probably be the best people to sell it for you. However, if they are not helpful, then ask some dealers in your area, or even online, remembering that you do have a near-wholesale price. However, don’t expect cash, as dealers may take the diamond or ring on consignment, meaning they will pay you when they sell it.
Alternatives to Selling
Sometimes, it may be best to keep the diamond, buy another and make a pair of earrings. Alternatively, you could melt the gold and make a nice pendant. You may even want to try your luck and hold on to the diamond and hope that diamond prices will rise, or the Australian dollar will fall.