How to Sell Diamond Rings When Diamond Values Are Changing
People think of the value of diamonds as a constant, but diamond values can actually fluctuate quite a bit over the course of just one month. Furthermore, prices for diamonds of a certain size, and specific style of cut may change in price independently of one another. For example, according to IDEX Online Research, the price for round cut, polished, one carat diamonds has declined 10.3 percent from their price one year ago. On the other hand, the one carat, princess cut diamond has gained 13.7 percent in value over the same time period.
It is important that you compare very similar stones when you are comparing the prices of diamonds because of this constant price fluctuation on different diamond sizes and cuts. Don’t just assume that diamonds of a similar size and quality will have similar prices. It’s also important if you’re getting several quotes for a diamond you want to sell you make sure you get all the quotes in a relatively short time period so they are all made under the same market conditions. Quotes should also have a date range telling you how long the offer will stand before it will need to be re-evaluated for potential changes in market prices for the diamond you’re offering.
This year, according to IDEX, December is expected to see a strengthening of diamond prices after a lackluster year as retailers work to replenish their stocks after holiday diamond sales. Amid uncertainty about the fiscal cliff negotiations and next year’s economic outlook, any gains that do materialize in December should be seen as a brief window of opportunity for diamond sellers to maximize their returns over the mid-term.
In the intermediate term, says IDEX, the outlook for diamond prices remains biased downward to neutral at best. They do see diamond prices tied to the US and global economic conditions and suggest that if, and when, these economies break out of their current doldrums, diamond prices may move upward along with them.
Although signs look positive for the US and perhaps for China, Europe seems to be anchored by economic crises in Greece and Spain. If these situations drag more EU member nation economies down,or th e US is unable to reach some reasonable compromise on the fiscal cliff and the approaching debt ceiling, another recession would almost certainly take diamond prices down with it.
When you’re selling a diamond, lowball offers have no need to move along with market prices. Those that offer bottom dollar for diamonds build in so much profit for themselves that a five or ten percent change in market value barely touches them. That should be a red flag to those wishing to sell diamonds. More reputable and honest diamond buyers, however, will offer you price that is close to the current market value for the particular stone you have to sell and they’ll tell you when their prices may need to reset based on market price updates.
You can reach me at 888-619-7932 or 310-775-2025, or you can send an email to my iPhone by emailing me at [email protected]. You can also fill out our form here to tell me about the diamond you are selling and I will get back to you with a free appraisal of its worth.