Diamond experts are regularly asked if diamonds have a resale value. It's fantastic to hear that diamonds may now be sold for money. The sum of money that is recoverable from your diamond is influenced by a number of factors. Continue reading to discover more about diamond resale value, how to assess the value of your diamond, and where to obtain an actual diamond price. Diamond prices seldom grow these days.
Everything from where and when you obtained it to whether you received it from a "friend" in the business or a chain store in your local mall will factor significantly. With the exception of some coloured diamond categories, prices have declined in numerous categories over the last decade or so. Only a truly great coloured diamond (not one with a colour modifier such as brown or brownish) has the potential to make you money. The worth of a diamond ring, a family heirloom, or even a single stone should never be underestimated.
Diamonds will always have a market due to the laws of supply and demand. Diamonds are widely thought to be excellent investments since their value rises over time. But that hasn't been the case for the vast majority of diamonds in circulation in the previous ten years or so. During this period, the majority of diamonds have devalued. The value of a diamond drops as soon as you leave the jewellery store, just like it does when you drive a brand-new car off the lot. A diamond, like a car, is a depreciating asset since it loses a considerable percentage of its value the instant you buy it. Consider precious metals such as silver and gold. Because coins may be held, sold, or even exchanged at any time, the market for them is extremely liquid and fungible.
Diamonds have always been a source of contention due to their scarcity and beauty: do they appreciate in value? As one of the world's leading diamond specialists, we are regularly asked about this issue by our clients. Online, you can find a lot of contradictory information regarding buying diamonds. Continue reading to find out if diamonds, as evaluated by our trained gemmologists, do really appreciate in value.
DO DIAMOND PRICES GO UP OVER TIME?
The short answer is that most diamonds' values do not grow with time. As we'll see in a minute, only a very small portion of diamonds see an increase in value. Many people believe that diamonds become increasingly valuable over time due to scarcity. Most diamonds have a lower resale value than their retail value, making them poor investments. On average, if you sell a diamond, you may expect to receive between 25% and 50% of the retail price. Secondhand diamonds, on the other hand, have experienced a decrease in price. So, why is the value of diamonds decreasing? Like a brand-new car, the value of your diamond plummets the moment you leave the jeweller's lot.
As a result, the value chain of a diamond extends beyond the jewellery stores that sell it to you. As a result, while retail diamond prices are high, the diamond resale market rate is far lower. A diamond's resale value is the price at which it may be traded for another. However, this does not include any profit made by a jeweller. This is the amount you are protected for if your diamond is insured by the jeweller from whom you acquired it or by a private insurance company.
As a result, the insurance value of a diamond is virtually always more than its market worth. This method serves two purposes: it gives the appearance that you received a fantastic deal on your diamond and it raises your insurance costs. Your diamond's retail or resale value is not directly tied to its insurance value. The price you paid for a diamond when you bought it from a jewelry retailer is its retail value. According to Business Insider, big-box jewellery stores raise diamond prices by 100 to 200 per cent. Jewellery sellers boost their prices to cover slow-moving inventory, operating costs, and to make a profit.
The worth of my diamond is an essential subject to consider
When you bought the diamond, the jeweller may have given you an assessment value. As a result, in order to avoid paying more money for a new diamond, the evaluated value is generally higher. You'll probably feel like you got a fantastic price on it as well. You will, however, have to pay a higher insurance premium for the piece of equipment.
The High Purchase Value of Diamond Jewelry: Anyone who has visited a jewellery store is aware of how pricey diamond jewellery can be.
According to Business Insider, jewellers routinely mark up their diamond jewellery by 100 to 200 per cent. Jewellers impose high markups to cover inventory holding costs, operational expenses, and profit. As a result, your diamond is very certainly worth less than you paid for it. The amount you would make if you choose to sell the diamond is its resale value. Diamond prices have plummeted, therefore the resale value is sometimes far lower than what you paid for the piece.
Diamond jewellery, on the other hand, frequently sells for 25 to 50% of its initial price. This is a substantially smaller share of the evaluated value. A diamond, like a car, is a depreciating asset since it loses a considerable percentage of its value the instant you buy it. Consider precious metals such as silver and gold. Because coins may be held, sold, or even exchanged at any time, the market for them is extremely liquid and fungible. During that time span, these assets may even appreciate and serve as a hedge against inflation. Diamonds, on the other hand, are an anomaly since there is essentially no secondary market for them.