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Unveiling the Diamond Resale Value: Myth vs. Reality

  • March 23, 2024
  • Admin

Unveiling the Diamond Resale Value: Myth vs. Reality

Diamonds have always been a symbol of love, enduring beauty, luxury and reverence. As much as you love your diamond jewellery, sometimes it doesn't fit your taste or is not needed anymore. And the solution to these issues definitely comes to selling your diamonds. But there is always a question: is it profitable to sell diamonds? Well, the great news is that diamond jewellery comes with its own resale value.

Why are diamonds hard to resell?

It is overwhelming to know that the moment you step outside the jewellery shop, your perfect diamonds become half the price. Isn’t that so unfair? The diamond marketplace is hard when it comes to reselling your precious diamond jewellery. Moreover, diamond jewellery is not as liquid as other jewellery like gold and silver. There are numerous factors to your question about why diamonds are hard to resell.

Factors that impact the diamond resale value in India are:

(a)Limited Market Demand

(b)Value of Diamonds

(c)Lack of Transparency

Limited Market Demand

With the latest trends in diamonds, diamond jewellery can be subject to less resale value. It is because everyone prefers new stones and designs with warranties or certifications. Generally, diamond resale value in India falls by 25%-50% of the price you originally paid.

Value of Diamonds

Determining the value of diamonds depends on the 4 Cs, which are Clarity, Colour, carat and Cut. Stone's cut, clarity, colour and weight in karat give you a clear picture of the amount a buyer will be willing to pay. If you are looking for an in-depth explanation of 4Cs, 24Karat is the go-to place for it.

Also Read:- The Gold Coin Market: Insights and Opportunities

Lack of Transparency

Unlike other jewellery like gold and silver, the diamond market is less transparent, which makes it difficult for sellers to determine the current value.

Why Is the Diamond Resale Value So Low?

Diamond resale value as discussed depends on a few factors like 4Cs, market demand and others. The value of one diamond sold in retail becomes absolutely different while you are selling diamond jewelllery. There are three values that give you an idea of why stones like diamonds differ in price.

(a)Purchase Value

(b)Appraisal Value

(c)Resale Value

Purchase Value of Diamond

Purchase value means the value you happily pay while you are buying the diamond jewellery. The purchase value is always high because of retail markups, as retail stores buy diamonds from wholesalers. The latter purchases from the manufacturer. As a result, the purchase value becomes higher and higher.

Also Read:- The Golden Thread: Unravelling India's Enduring Love for Gold

Appraisal Value of Diamond

The retail shop might give you the details of the appraisal value of your diamond jewellery. The appraisal value is determined on the basis of setting and the diamond, which only raises the diamond's insurance premium.

Resale Value of Diamond

Resale value is the value that the buyer gives you when you decide to resell it. Sellers usually find a huge difference between the purchase value and resale value of diamonds. Moreover, diamonds are resold for almost 25% - 50% of their original price. That’s why buying diamonds as a token of love is good but not for investments.

How do you determine diamond resale value?

The best diamond buyers in Delhi NCR follow a simple routine of checking the quality of diamond. To determine the diamond resale value, they check the quality on the basis of the diamond’s 4C’s.

1. Clarity

Clarity refers to an absence of faults such as blemishes or inclusions on the diamond. The fewer inclusions or blemishes on the diamond, the higher the value will be determined. There are six clarity grades that determine the diamond resale value.

If there is a flawless diamond, then the grade will be FL. For internally flawless diamonds, IF is the grade. Diamonds that are very, very slightly included are graded as VVS1 VVS2. Further, with very slightly included diamonds, they are graded as VS1 VS2. SI1 SI2 is the grade for slightly included diamonds, and the last I1 I2 I3 for imperfect diamonds.

Also Read:- The Allure of Gold for Beginner Investors in 2024

2. Colour

The colour of a diamond speaks for its quality and value. There is a myth that diamonds are colourless but that is not true. In reality, diamonds have a yellow or brown tinge to it. Diamonds with DEF grade that means colourless diamonds are the highest in value.

3. Cut

Cut refers to the shape of the diamond. If your diamond is a well-cut diamond, it will give more value than a diamond with less cut. The well-cut diamonds have more life and sparkle.

4. Karat

Karat refers to the weight of the diamond. The weight of a diamond is the actual weight and not the size of a diamond. If a diamond is 18 karat, it does not mean it will have a higher value if other Cs are poor.

How can I get cash for diamond jewellery?

We are aware that diamonds have a resale value; the main concern lies in determining where to sell diamonds for cash. Finding a reputable buyer in the diamond market is necessary to get the right price for your diamond jewellery.

Buyers like 24Karat have been in the business for over half a century in India. They offer great rates and a procedure that is simple to use. Also, being the best diamond and top rated trusted gold jewellery buyers in Delhi NCR, they value your time and offer instant cash for diamond jewellery.

So, if you are wondering where to get the best diamond resale value or is it profitable to sell diamonds, 24Karat is here to guide you on it. As top-rated trusted expert diamond jewelry buyers in Delhi NCR, reach out to any branch and get the best diamond resale value!

Also Read:- Navigating the Gold Market: From Bhutan's Prices to India's Tax-Free Limit

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