When Tiffany was starting DreamsRecycled she set about to understand the engagement ring resale business. She just couldn’t understand why recently divorced women in her situation were being offered 10% of the retail value for their engagement rings. I am a diamond expert and the owner of Andy’s Diamonds and Gems Inc. This is a brief description of how the diamond resale trade operates. Tiffany felt that other women in her situation would benefit from this information.
There are 3 major venues to resale your engagement rings, pawn shops, jewelry stores and individual selling thru website to individuals.
Pawn shops and jewelers historically and statistically will pay 10%-20% of the retail/appraisal value they are there to make money on your rings. They will melt the gold and resell the diamonds wholesale for profit or reset the diamonds and resell them at full retail value. Selling your ring in this manner typically yield the lowest resale value for your rings.
Reselling your ring on a website means ideally you should educate yourself on the diamonds and precious gems you have. Having an appraisal done will give you a good starting point on the 4 C’s of the diamond. You will need to know the 4C’s- Color, Carat weight, Cut and Clarity of the stone to describe your ring to the best of your ability in an online setting. Different grades in any of the 4 C’s can make a major difference in the resale value of the ring. As a rule of thumb (although variations can be large) if you are receiving offers between 25-40% of the rings retail value these are realistic figures for diamond resale. Exceptional rings and diamonds could occasional sell for higher to the right buyer. Engagement rings listed on any website statistically will sell faster and for a higher price with a full appraisal especially if listed with a GIA or EGL certification.
My tips for selling your ring.
Have realistic expectations in no arena are you going to resell your ring for even close to the appraisal or retail value.
Know what you have, know the 4C’s of the diamond you are selling.
When possible have an appraisal, GIA or EGL certificate and list that with your items.
I have seen thousands of women trying to sell their rings after their divorces, I welcome your questions and will answer as many of the questions I can in my future blogs.
Andrew Robinson
CEO Andys Diamonds and Gems Inc.