6 Must-Know Facts About Buying and Selling Diamonds
Buy and sell your diamonds for a decent price based on several factors. If you are willing to put time into making more money, you can earn substantial profits as a diamond dealer.
The basic facts every gemologist knows about a unique stone revolve around cut, color, carat and clarity. The cut of a diamond determines how well the facets of the gem interact with light. Professional gem cutters fashion each stone so its proportions, symmetry and polish reflect the right amount of light. Diamonds come in many colors, but the most common variety lacks any color whatsoever. Carats refer to how much a stone weighs. A metric carat is 200 milligrams. Clarity describes a diamond's inclusions, blemishes and imperfections. Inclusions exist within a diamond, while blemishes sit on the outside.
The wholesale prices of stones determine how much money you make buying and selling loose stones. Diamond Registry lists the wholesale prices per carat of various stones based on the grading of the stones. For instance, an internally flawless, 10-carat round diamond sells for more than $250,000 wholesale, whereas a slightly included gem goes for around $6,650 as of April 2015.
Negotiate a Price
The key to selling loose stones to dealers lies in negotiations. How much you know, your reputation, and who buys and sells your diamonds all factor into the price. Some buyers and sellers may try to rip you off, so you must have knowledge of the diamond market before a transaction. Serious buyers and sellers build relationships with each other. These relationships lead to trust and honesty among contacts.
Mull Over Your Options
You have two basic choices when it comes to selling a diamond. When you sell to a dealer, that person needs to make a profit when he sells the diamond again. Expect to get 25 to 40 percent less than retail price when you sell to a dealer. If you sell to the general public, determine a retail price for your stones and list the diamonds for sale on several dedicated selling websites. The difference between the selling patterns is time. If you can sit with your stones for a while longer, sell diamonds to the public. If you need money faster, investigate a local jeweler who may buy your cache.
Grade Each Stone
Have each stone professionally graded by a company that has expertise in this area. The Gemological Institute of America and the American Gem Society can document the grade and condition of your collection and send you official paperwork.
Diamonds, especially those in engagement rings, symbolize love and financial commitment between a happy couple. Buying and selling diamonds also represent a huge commitment from someone who may be emotionally tied to the sparkling, clear stones. Know your facts before you buy or sell this type of precious gem.