Three times last week I felt like I was having déjà-vu. That feeling like you have already been somewhere before, or had a similar conversation but you cannot place it. I quickly realized that it was not déjà-vu but rather I actually was having the same conversation multiple times. They all went something like this:
Anne – “Can you give me an idea of the amount you would like to see out of your diamond?”
Client – “ I did not have an exact figure in mind, but I know what the diamond is worth because of what I paid for it, and it was appraised for even more than that.”
This seems to be one of the most common conversations I have with clients and where I happily began to give all three clients an insight into the diamond market.
If you were to sell your current vehicle, what would you do to determine what price to ask for it? Would you just go by what you paid for it, take 50% off that price and hope for the best? Or would you do some research into what a realistic number would be to be competitive in the market?
Most would use the prices of other cars for sale locally as a guide as well aslooking at the Kelly Blue Book value to find an estimate. The problem with re-selling a diamond is that while there is a similar reference guide to the Kelly Blue Book for diamonds, it is not available to the public. This leaves only two numbers that consumers know about their pieces; the price they paid for it, and how much the piece was appraised for.
The problem with both of those numbers is that they are retail values. An appraisal value is only reflective of what the diamond is worth in a retail environment and NOT representative of what an individual could assume to sell the piece for. Moreover, as discussed in previous posts, the retail value of a diamond includes all of the jewelers mark-ups, and profit but when you go to sell that diamond, you are only working with the value of the stone itself.
So how is someone supposed to know what a realistic asking price for his or her diamond would be? The simple answer is to call MJ Gabel and speak to one of our representatives who will happily consult with you FREE OF CHARGE!
In order to get a feel for what similar pieces are currently priced and and to start to become familiar with the resale marketplace; here are some observations.
Number one: Go to Bluenile.com and find a diamond similar to the one you own by using their diamond search. Blue Nile is the largest e-retailer of certified diamonds. Their price points are lower than any brick and mortar jeweler, and only slightly higher than wholesale prices. This would be the equivalent of finding out what car dealers are asking for your car.
A good starting asking price for your diamond would be about 30% below the BlueNile price. This is because although BlueNile prices are less than those of your local jeweler, they are still retail prices.
Number two: Look at what other people are trying to sell their similar diamonds for on places like Craigslist – Check out your competition!
I speak with many clients who have already gone to a local jeweler only to find that the jeweler is uninterested in purchasing the diamond, will only give the client a trade value towards new jewelry or whose cash offer is insultingly low. On the other hand, on more than one occasion I have had this conversation:
Client: “My jeweler told me my diamond was worth XYZ”
Anne: “Is XYZ what the jeweler offered to purchase the diamond from you for?”
Client: “No, they do not buy back diamonds.”
As discussed in previous Blogs, the reason why many jewelers choose not to buy diamonds back from the public is because they would have to disclose their own mark-ups. Consider this in light of the numbers jewelers throw around; they are in the business of selling jewelry and are the ones who made between 200-400% profit on the original sale of your diamond. Therefore, unless the price they quote you is what they will actually purchase the diamond for, it is irrelevant. Always make sure they are specific, that the price is a cash offer and that it is:
NOT what they think you can sell the diamond for
NOT what they would sell the diamond for
NOT what they would appraise the diamond for
Diamonds are forever may be true; regardless of what the jeweler may lead you to believe, diamonds are not a good investment. Unfortunately you may never be able to recoup the full amount you paid for the diamond. In order to get the most back from your diamond, do your research. Know not only what you have, but also what a realistic amount to expect is going to be. Consultations and answers to questions are ALWAYS available at MJ Gabel. It will only cost you the time it takes for a phone conversation, or to type an email to obtain information that could mean the difference of thousands of dollars in your pocket. MJ Gabel is always available to help clients navigate the diamond industry, and to recoup the maximum amount from the sale of their diamond.
If you are unaware of what your diamonds characteristics are, contact MJ Gabeland take advantage of a free diamond evaluation.