Reselling diamonds: Overcoming the challenge
We purchase diamonds for ourselves or for the special people in our lives to create memories. The diamonds and the memories, both go hand in hand and last for a lifetime. Unless an unforeseen situation forces you to sell your precious stone. Reselling diamonds in itself is a challenge but there are ways to deal with it.
You cannot predict or know when an emergency could come knocking at your door. You may have planned your finances very well but things could still go wrong. At such times, we prioritise and let go of certain valuables that could fetch us some monetary aid. This is where reselling diamonds becomes necessary.
Gold jewellery is one such precious commodity that a lot of people sell for money. Since gold rates have been standardised, it is easier to carry out the resale process.
Even if your gold jeweller does hide the facts from you, the gold Sensex will not. With the correct guidance, you can easily sell your gold and get the right price.
The same cannot be said for diamonds though. These stones are much more expensive than gold and can seldom be resold. You may have spent a greater part of your savings over a solitaire. But getting its value back can be a task.
More often than not, your jeweller may simply refuse to take it back. Or to make things difficult, you may not even get the correct value for your diamond.
Let us first identify the challenges:
Like gold, diamond rates are not standardised. There is a chance that you probably may have not even purchased your diamond at the right price. This makes reselling diamonds a task.
There is a black market for diamonds as there is for nearly all sorts of goods. Trying to resell your diamond there can get you into a lot of bigger problems.
Generally, diamonds from the black market are not a part of the regular trade. But if you do not know your jeweller well, you might get into trouble.
Another problem is getting very little money in return for a diamond that cost you half your savings. Since there are no indicators for diamond prices and their changing trends, you will always be at a loss.
What can we do about it?
Firstly, understand how diamonds are priced. It is done on the basis of the four most important parameters of a diamond. They are the cut, carat, colour and clarity.
Adequate research and diamond education are your priority here, find very reliable sources for reference.
The real solution to your problems is standardising diamond prices. The diamond industry has still not adopted standard pricing wholly. However, there is a slow but steady change in this attitude.
Standard pricing is when you get the same price for a particular diamond across all jewellers. It leaves no room for discrepancies in pricing.
Buy your diamond from a trusted jeweller who assures you of a good buy-back policy. Diamonds do have a resale value, only that the concept is still to be explored. If the jeweller is honest about a buy-back, it is safe to get your diamond from there.
If in a time of need you cannot resell your precious rock, your diamond becomes like any other piece of rock.
The diamond industry has a long way to go as far as price transparency is concerned. So much so that …