We hate to admit it. But sometimes, engagements don’t work out. And now, you’re left with a beautiful diamond engagement ring and lots of bittersweet memories. You’ve thought about selling the ring but are wondering about the diamond’s long-term value. Here’s what you should know, so you can make an informed decision and start a new chapter.
Do Diamonds Hold Their Value?
This question gets a bit tricky. The short answer is yes and no. Here’s what we mean by that. Diamonds are often perceived as precious and valuable stones that are expected to last a lifetime. As you may already know, they’re the most scratch-resistant gemstones and score a perfect 10 on the Mohs Hardness Scale, which measures the “hardness” of gems. And according to market and consumer data website Statista, average diamond prices per carat increased more than 1,000% between 1960 and 2016! Therefore, these gems are a more worthwhile investment than others.
However, jewelry experts caution sellers not to get too excited about that price-per-carat jump, as it doesn’t exactly indicate a diamond’s long-term value. Inflation is one reason to consider. While gem prices were rising over the years, other prices were increasing too, making those figures less impressive.
And when it comes to reselling diamonds, prepare for the harsh reality. Experts say the sparklers typically resell for 20-60% less than what they originally cost. So, you can earn some money by reselling your stone, but it’s likely lower than what you might expect.
What Affects Diamond Value?
So, why are some diamonds valued differently? And what causes such a wide value range when reselling a gem? Multiple factors are involved. We’ll start with the most important: diamond quality.
Diamonds go through a rigorous grading system, in which trained gemologists carefully examine each stone’s cut, color, clarity and carat weight (aka the 4 C’s). Stones that receive better rankings in these categories will be more valuable than gems that display hints of color, visible imperfections, etc.
You should also think about where you initially purchased your diamond. If you went through a brick-and-mortar retailer, you likely paid extra to help cover costs for the store’s rent, utilities and more. Similar markups also exist with online retailers, but they’re typically lower.
When you resell a diamond, these additional costs are no longer included, resulting in a lower value.
Natural vs. Lab Grown Diamonds: Which is More Valuable?
Did you also consider the type of diamond? Natural diamonds formed billions of years ago beneath the Earth’s surface, and mining them can be a difficult and expensive process. According to a 2015 report from the Diamond Council of America, miners might need to move a combined 30 tons of ore and rock just to create one carat of a gem-quality diamond! In addition to that, only about 30% of stones mined across the world qualify to become gems.
Lab grown diamonds, on the other hand, are created in laboratories, typically in a matter of weeks. Since these gems are readily available, they’re less valuable than their natural counterparts and therefore have less value when being resold.
Have a question? We can help!
Gage Diamonds is Chicago's premier jewelry showroom and online retailer of engagement rings, wedding bands, and fine jewelry. We offer a selection of dazzling handpicked diamonds, including certified natural and lab grown diamonds.
We’re committed to helping you find the ring of your dreams. For inspiration, browse our website or set up an appointment with a member of our trusted staff at our in-person showroom.
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