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New Tutorial: How to Sell Your Diamonds

coati

Super_Ideal_Rock
Trade
Joined
Jun 8, 2009
Messages
21,747
Hi all,

We've just added a great new diamond-selling guide for consumers written by independent jewelry appraisers Neil Beaty and David Atlas and edited by John Pollard.

The tutorial, How to Sell Your Diamonds: A Guide for Consumers, outlines five primary sales strategies for consumer sellers.

1. Direct Retail (internet, classifieds, or a friend)

2. Sale via Consignment or Auction through a Jeweler

3. Sale to a Dealer for Immediate Payment

4. Trade in / Trade up

5. Buy-Back

Selling a diamond: Who are the buyers? What is the reality of the secondary market?

The first step in a diamond sale is to understand exactly what you have. Diamonds are valued using a grading system that’s well-described in the diamond and jewelry tutorials here, but an inconvenient truth is that diamond grading standards vary. Any offer you receive will be based on how the buyer sees the diamond’s grades, so it’s in your best interest to anticipate what those grades will be.
The guide accompanies our Sell Your Diamond system, which we launched late last year.

*Many thanks to Neil Beaty, Dave Atlas, and John Pollard, for creating this tutorial and for their support of Pricescope's knowledge base. We appreciate your contributions!
 

Modified Brilliant

Brilliant_Rock
Trade
Joined
Mar 24, 2005
Messages
1,481
Nice work gentlemen!

This is a very useful guide for sellers today and in the future.

My most common reply to a seller is that "each potential buyer will form their own opinion on quality regardless
of what documentation or knowledge that you have or think you may have."

There's no reason for anyone not to gain a little knowledge first about how the real buying world operates.
 

meredeth11

Shiny_Rock
Joined
Dec 18, 2012
Messages
292
Great thread! Have kept those practical ideas.
 

bgray

Brilliant_Rock
Joined
Jul 28, 2007
Messages
1,960
just curious about tax implications. I am considering selling my engagement ring. it has appreciated wildly since purchase, the insurance on it is exorbitant and i would love to not have to deal with that expense. however if i sell it to a dealer or whomever, do i have to pay tax only on appreciation?
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
8,771
In general, the income tax on appreciated personal property, including jewelry, is on the appreciation only. If you sell it for less than you paid, there is usually no tax owed. Sales taxes occasionally apply depending on who you sell to and the nature of your jurisdiction. In most cases, private party sales by people who do it infrequently are left alone but there are exceptions. Insurance 'value' has nothing to do with either one.

If you received it as a gift, which is usually the case with engagement rings, it's slightly more complicated. Your 'basis' is the FMV as of the date you received it. This may or may not be what he paid but the tax would have to do with the comparison of that value to the amount you actually receive when you sell it.

Another slightly tricky issue on engagement rings, by the way, is the gift tax. Gifts to a spouse are exempt to any amount but a gift to a fiancee is in the same category as anyone else and there are possible tax implications if it's over $13k. The usual rule is that it's a 'loan' during the engagement and the ownership transfer didn't actually occur until the wedding but if the engagement doesn't turn into a marriage and the bride doesn't give the ring back there are some potential tax implications if it's worth more than $13k.
 

thediamondshopper

Rough_Rock
Trade
Joined
Mar 26, 2013
Messages
97
bgray|1378228729|3514052 said:
just curious about tax implications. I am considering selling my engagement ring. it has appreciated wildly since purchase, the insurance on it is exorbitant and i would love to not have to deal with that expense. however if i sell it to a dealer or whomever, do i have to pay tax only on appreciation?
I would also be curious as to whether you would be able to deduct the insurance premiums against the appreciation?
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
8,771
thediamondshopper|1379755127|3524667 said:
bgray|1378228729|3514052 said:
just curious about tax implications. I am considering selling my engagement ring. it has appreciated wildly since purchase, the insurance on it is exorbitant and i would love to not have to deal with that expense. however if i sell it to a dealer or whomever, do i have to pay tax only on appreciation?
I would also be curious as to whether you would be able to deduct the insurance premiums against the appreciation?
As with all tax questions, this should be directed to a tax professional but I would expect jewelry insurance to not be deductible for most taxpayers. You are buying a service from the insurance company that is independent of the goods, not making additional payments or altering the merchandise.
 

Rockinruby

Ideal_Rock
Joined
Dec 27, 2013
Messages
2,740
Excellent info! Many thanks to everyone involved for putting together a very helpful educational guide. :appl:
 
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