What Women Need to Know When Selling a Diamond Engagement Ring

Every woman dreams of walking down the aisle, saying her wedding vows, and spending the rest of her life with that special someone. However, life is rarely a fairy tale. There are inevitably times when unexpected circumstances cause a wedding to be canceled. This can be a very difficult situation to cope with; especially if you had your heart set on that amazing day. When we then take into account the emotional significance of an engagement ring, it becomes clear why many women wish to part with such a testament sooner as opposed to later. Are you thinking about selling your ring in order to obtain a bit of much-needed closure? If so, there are a few factors to address so that you can obtain a fair market price. Let’s examine why the quality of the diamond is critical before highlighting some other concerns that you will need to take into account.

How do Diamond Appraisals Work?

The main purpose of a diamond appraisal is to assess the quality and characteristics of the stone in question. You might already be aware of the four “C’s” of diamond grading. These are:

• Carat
• Color
• Cut
• Clarity

Every diamond will be assigned its own unique grade based off of these four variables. This is how its ultimate value is determined. The appraiser will then take a look at other factors such as the type of the ring, what materials were used in its construction (such as any other gemstones), and the setting. In the majority of cases, it is wise to work with an appraiser who has been certified by the Gemological Institute of America (GIA).

What is a “Fair Market” Appraisal?

We should note that there are a handful of different appraisals that can be obtained. Some are more suited for insurance purposes while others deal with extremely old or rare diamond rings. For the sake of this article, we will be examining how a fair market appraisal works.

Fair market appraisals are intended to provide you with a realistic picture of what you should expect the diamond ring to sell for if it were placed on the open market. Not only will this examination take into account the stone itself, but it includes other factors such as the condition of the ring and depreciation. Much like selling a car, it is often not possible to sell the ring for the initial price that you paid.

What Are the Differences Between a Diamond Certificate Report and an Appraisal?

This is another subject that can be slightly confusing, so it pays to have a closer look. The chances are high that your partner would have received a detailed grading report when he initially purchased the engagement ring from a dealer. This report contained important information such as a description of the stone and its rating in relation to the four “C’s” mentioned earlier. Although this information is normally included within an appraisal, there are some critical differences to observe.

First and foremost, appraising a diamond ring will include other elements such as the ring itself, the setting, the type of metal, and other precious stones. A grading report only contains information about the diamond. Let’s also point out that an appraiser will attach a value to the diamond engagement ring. This is why such an examination is used before the item is offered for sale.

Finally, grading reports will not change over time. The qualities of the diamond always remain the same. This is why the expression “diamonds are forever” is a very relevant term. Appraisal values can increase or decrease in relation to diamond prices and various market conditions. This is why they may need to be updated on occasion. If you are curious to learn more, the page www.ringspo.com/diamond-appraisal contains a host of useful information.

Appraisal Prices Versus Retail Prices

We now come to the crux of this article. Why might the price of an appraisal differ when compared to the resale value of a diamond ring? There are a handful of variables that can come into play.

We should first point out that there is often a certain stigma attached to a “used” engagement ring. Second-hand designs tend to fetch a lower value due to the simple fact that they essentially represent someone else’s dream.

Another issue involves the overhead costs that a retailer will need to offset. Selling a diamond engagement ring can take time. Other issues such as a stone that needs to be set differently or repairing damages can impact how much the retailer is willing to pay.

You might also be surprised to learn that (generally), the price of a diamond encased within a ring is lower than a standalone stone. The only possible exception is if the ring holds some type of historical significance.

The final factor involves simple profit. Those who are extremely eager to purchase a diamond engagement ring will likely provide you with an extremely low offer. This enables them to sell it at a much higher price; increasing their profit margin. So, be sure to steer clear of establishments such as pawn shops if you want to avoid being taken for a proverbial ride.

Putting it All Together

Selling a diamond engagement ring does not necessarily have to represent a complicated process. Let’s review some of the most important points:

• It is always wise to have the diamond graded by a professional.
• Fair market appraisals are often lower than the initial value of the ring.
• Grading reports do not attach a price to the diamond.
• Appraisal and retail prices will frequently differ.

So, why not sell your ring as opposed to allowing it to gather dust? Whether you wish to take a much-needed holiday or you simply want to put the past behind you, there are always options at your disposal.