As individuals, we often expect the resale value of diamond possessions to match our expectations. Many own diamond earrings, necklaces, rings, and other items as a long-term investment. 

However, when it comes to resale, determining the actual value is not known, and many are confused about what will be the actual return. In this blog, we will discuss what resale value you should expect and what's the actual worth of the diamond that you own.

The Resale Value of Diamond

We know that the diamond resale value of jewelry or loose diamonds will not fluctuate just like gold. However, the resale value of diamonds in India and globally will depend on the demand and supply of these precious stones. 

One thing to be kept in mind when aiming to maximize the purchase value of diamonds its crucial to consider the following factors:

• Keeping all purchase documents, including certification and appraisals, that will help you establish the authenticity and quality of the piece.

• Regular maintenance, such as cleaning and inspection, to preserve the condition of the jewelry.

• Obtaining quotes from different potential buyers to obtain a fair market value.

Is Diamond a Good Investment?

Yes, diamonds are generally considered a good investment. Their demand has always been steady because of factors such as wars, technological advancement, and other major changes in the marketplace. Let's explore the reasons why diamonds are considered as a good investment:

‣ Price Fluctuations

Diamonds are valued as a good investment because their prices don't fluctuate as compared to other commodities. Unlike gold, their prices are not as affected by inflation or other economic forces, although global economic trends can influence their value.

‣ Store Value

In general, it is considered that the value of diamonds depreciates over time. In some cases, the more scarce the diamond is, the more valuable it becomes. Additionally, diamonds are considered durable and long-lasting, making them a store of value that can retain and even increase its value. 

‣ Recyclable

Diamonds are 100% recyclable, meaning they can be melted and reshaped into various forms such as rings, necklaces, earrings, or any desired mold.

‣ Durability

One of the reasons why it is considered to be higher is because it is the hardest natural material on earth and can withstand a lot of wear and tear. Moreover, they don't quickly tarnish over time. Its durability will be able to contribute to its longevity and aesthetic appeal over some time.

‣ Increasing Demand

Over the last decade, there has been a considerable increase in demand for diamonds. Factors such as rising purchasing power and the significance of diamonds as status symbols and indicators of luxury have driven purchases, especially among the upper middle class and upper class.

‣ Globally Accepted

A product that is universally accepted and widely recognized as a symbol of luxury and status, making it easily tradable and exchangeable for goods and services. Their quick liquidity means that they are widely accepted globally.

‣ Affordable Investment

The affordability of diamonds depends on how much the price range of diamonds is. The small and affordable diamond offers an affordable alternative for investors. Moreover, the accessibility of diamonds differs from individual budgets and preferences.

How to Know Diamond's Worth?

The true value of diamonds depends on multiple factors, and you need to consider these three values:

① Purchase Value

The price you pay at the time of purchase is relatively higher compared to the actual market price of a particular diamond. This is because the retailer from whom you purchase includes the cost to cover utilities, space rent, and wages.

To avoid this, the only solution is to purchase it online. Now, moving ahead, as we discussed above, the value will depend on where you purchase the diamond, whether it is from a retail store, wholesaler or through a private sale.

② Appraisal Value

The appraisal value of a diamond is usually determined by a formal assessment conducted by a certified gemologist, which evaluates the diamond based on quality using industry-standard criteria. The appraisal value provides an estimated replacement cost of the diamond in the current market. It will not necessarily reflect the amount you paid for it but indicates the cost of replacing the diamond with a similar one.

Appraisal values are often used for insurance purposes, helping us to determine the appropriate coverage for the diamond. However, it is also important to note that appraisal value may not reflect the actual market value or diamond resale value.

③ Resale Value

The resale value of a diamond is the amount you expect to receive when selling the diamond in the secondary markets. Market conditions primarily influence this value, demand for diamonds, and the overall quality of the stone. 

The resale value, or diamond resale price, can vary depending on where you choose to sell the diamond, as different outlets may offer different prices. You can get a resale fair value from auction houses, reputable dealers, or established online platforms.

How to Identify the Resale Value of a Diamond?

The resale value of a diamond is that the minute you leave a jewellery shop, its market value decreases. You might say this is unfair as after such a huge investment, you couldn't get the same or higher value than this. The factors that impact the diamond resale value are:

» Market value

Dynamics of supply and demand, economic conditions, and global trends determine the market value of a diamond. Prices fluctuate based on factors like customer preferences, changes in fashion, and overall economic stability.

Diamonds are typically based on 4cs and factors that determine the overall quality and rarity, impacting market value. Higher quality diamonds with desirable characteristics can demand higher prices in the market.

» Basic Parameters and Quality Grade

The quality of a diamond is assessed by Four Cs, which affects its resale value. Let's explore how each parameter influences the quality grade:

• Carat weight

The size of the diamond with larger diamonds is more valuable.

• Cut 

The precision of the diamond cut influences its brilliance and overall visual appeal.

• Colour 

Colourless diamonds tend to be more valuable and of higher quality.

• Clarity

The presence of inclusions or blemishes affects a diamond's clarity, with higher clarity grades resulting in higher values.

Also Read: Learn About the 4C's of Diamond - The Ultimate Guide

» Place of Selling 

Besides the 4 Cs of diamond, there are other factors, such as the location where you sell the diamond affect its resale value. The value will vary according to regional demand and pricing structures.

If we consider selling through reputable dealers, auction houses, and well-established online platforms are likely to quote better prices compared to other untrustworthy outlets.

Summarize

To sum up, we hope that you now have a clear understanding of the actual resale value of diamonds. Furthermore, we also emphasized understanding the importance of recognizing the true worth of the diamond within your possession.

V. Jayantilal & Co., being one of the top diamond companies in the industry for the past 40 years, holds a vision to deliver quality service and expand its presence across the globe. Being the manufacturer of round diamonds, emerald cut diamonds, cushion diamonds, and oval diamonds, we keep customers at the center of attention.