Diamond Buyers of Chicago

Lets learn about what you can expect when you want to Sell A Diamond or Sell Diamond Jewelry and what your appraisal really means. If you have an appraisal, read the document carefully and most likely you will find wording such as "this appraisal is written for retail replacement for insurance purposes". This means that the value stated is what the insurance company bases their premiums to charge you and how much it would cost for you to buy a similar piece of jewelry from a retail jewelry store.

Typically this price is inflated over the purchase price as many insurance companies will only pay 70-90% of this amount. Also this price is inflated to take into account that prices of precious metals and diamonds will increase in value at some time in the future.

So how is this appraisal price determined? Retail jewelry stores are in business to make a profit. This should not come as a surprise to anyone, but many people do not realize that there is often a very large mark up on jewelry...often times as much as 3 times the jewelers actual cost. Jewelry is one of the emotional purchases that individuals make and people should not confuse a purchase of passion with an investment. Most of the time, diamonds and diamond jewelry purchased at retail are not a good investment due to the mark up at the retail level. It is unrealistic to expect to recieve what was paid when you wish to Sell A Diamond Ring, Sell An Engagement Ring, or Sell Estate Diamond Jewelry.

Also it should also not come as a surprise that the wholesaler who supplied the diamond, the precious metals, and any other components used on the piece of jewelry also made a profit. Although wholesalers do not make anywhere near the profit margins that retailers require, they still often make up to 20%.

Finally, when you are interested in selling a diamond, engagement ring, or piece of diamond jewelry, you must realize that the initial purchase was one involving the very high emotion. Most ladies I have met in my life want their own individual engagement ring and not one that has been worn by someone else. There are of course exceptions to this such as their grandmothers ring, their mothers ring, etc. or a signed piece such as a Tiffany and Company, Cartier, Graff, etc.

Please realize that there are no rules governing jewelry or diamond appraisals and there is a lot of variance in values depending on who wrote the appraisal. In general, you should expect somewhere between 20-40% of the appraisal price when you wish to sell your diamond jewelry back to a dealer. Please understand that often the value of the ring itself is calculated by the current value of the metal and how much it weighs plus the carat weight of any side stones at wholesale. All of the markup and the cost of manufacturing are lost as most of the time the rings are torn apart and melted down to produce new jewelry items.