Why do diamonds have such a low resale value?
The reason resale prices for diamonds are so low compared with retail prices is that jewelers buy diamonds in bulk, at wholesale prices, which are much lower. The retail price you pay for a diamond at the store is higher because it includes overhead expenses, such as rent and personnel salaries.
Are diamonds a good resale?
Diamonds resell for 25\% to 50\% of their purchase value. So if you purchased your diamond jewelry for $1500, the resale value will be somewhere near $855-900, depending on the buyer’s preferences. That’s why only rare and big diamonds are good for investments.
Why are uncut diamonds worth more?
The price of an uncut diamond is primarily related to its carat (size), clarity, and color. Carat: Normally, the higher the carat weight, the more it costs. The fewer inclusions a diamond has, the higher grade of clarity it earns. A flawless raw diamond may be worth more than a cut diamond with a low clarity grade.
Why are diamonds so low in resale value?
So, once the diamond has been paid in full, the costs and expenses are all settled and the only things left worth measuring value are the diamond crystal and the ring’s setting. In a nutshell, these are the main reasons why the diamond resale value is so low. We like being the center of attention.
Why are diamond rings so expensive?
At a jeweler’s store, a diamond ring is worth twice what it’s worth after it has been purchased. This is because they buy their diamond pieces in bulk and this secures them the wholesale rate. This does get them more products at a lower cost but it also introduces an issue in mark-ups.
Do you get your money back if you sell your diamonds?
Still, it’s clear that regardless of where you sell your diamond, you won’t get its retail price back. In a best-case scenario, you can expect to receive between 20\% and 60\% of what the ring originally cost, depending on where it was purchased. Do Diamonds Decrease or Increase in Value Over Time?
Do Lab created diamonds have any resale value?
However, when it comes to resale value, lab diamonds have very little to zero resale value compared to a natural diamond. In fact, you may notice that vendors that sell lab diamonds would not offer any trade-in or upgrade policies for lab created diamonds.